The grach below shows the Production Fronter for an economy in the year 2001 and 2002 Which of the following explanation best describes the location de chion that would cause the frontier to change in this way Capital Good Graph: Production Frontiers For two years, 2001 and 2002 2001 TH001 0 Consumer Goods The economy drewsources in 2002 hat did not have in 2001 The cromy has increased the ability the produce al goods in 2002 by improving their technology The economy created capital goods in 2001 towedson of consumption Doubt 2002 The economy s chosen to produce more consumer goods the capital gode in 2002 Which of the following statements about Product and Factor Markets is true? O a Household are the buyers of finished goods and services in the factor market, and businesses are the buyers of resources in the product market O b. Households are the sellers in both product and factor markets, and businesses are the buyers in both product and factor markets Oc. Households are the buyers of finished goods and services in the product market, and businesses are the buyers of resources in the factor market Od Households are the buyers in both product and factor markets, and businesses are the sellers in both product and factor markets . Which of the following steps is NOT necessary for determining an opportunity cost? O a. There must be two alternative uses of the resource O b. The two potential products or services must be equally scarce in the marketplace O c. You must put the same amount of resource into each use O d. You must identify and measure the benefit for each use of the resource What is the best definition of Marginal Product? O a Marginal Product is the minimum output available from a given quantity of resource a. O b. Marginal Product is the maximum output available from a given quantity of resource O c. Marginal Product is any product whose availability is uncertain O d. Marginal Product is the increase in output when the resource is increased by one unit What is the main difference between Labor (as a factor of production) and Entrepreneurship (as a factor of production)? Ca Labor organizes the production, assembling the natural resources and capital that are needed, while the entrepreneur provides the money for start-up of the business 6.Labor exchanges time and skills for a wage, while entrepreneurs bear the risk of business success and failure O c The entrepreneur in always a human factor of production, but labor can be human workers or robotic workers on an assembly line Od. Both labor and entrepreneurs bear the risk of business success or failure, but the entrepreneurs are more highly paid than the laborers The publisher that we ditoed in das who has 20 wnters on staff, has decided that wiard stories are once again more popular than vampire stories and has moved 3 of its writers from the creation of vampire stories to the creation of Wizard stories. As a resul, the publisher pus out the year 4 more wiard books than lost you, and 3 fewer vampire books than last yeat. What is the opportunity cost of each additional ward book? O x The opportunity cost is zero because the writers work for the same publisher Oh. The opportunity cost of a ward book is 48 of a ward book per Vampire book The opportunity coulis 3 moins book per wird book Od the opponunily cost of a wedbook olvare book per ward book What is the meaning of comparative advantage in trade?" Oa Comparative advantage refers to the fact that not all products can be produced in all countries Ob, Comparative advantage refers to the fact that countries can benefit from trade if their opportunity costs of production are different Oc Comparative advantage refers to the fact that some countries simply have more resources than other countries Od. Comparative advantage occurs when one country colonizes another country and forces them to trade under terms favorable to the colonizer What is the primary role of the price system? O a. The role of the price system is to make sure that everyone who produces the product will be able to make a profit b. The role of the price system is to make sure that everyone who needs a product will be able to buy it Oc. The role of the price system is to make sure that prices reflect the social value of the product Od. The role of the price system is to enable buyers and sellers to communicate with each other