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A point to the right of the production possibilities frontier is:

Planned economies rely heavily on _____ to make most economic decisions.

Between 2013 and 2015, China built more than 3,000 acres of new islands in the South China Sea. This had the effect of:

(Figure: Determining Surplus and Loss) In the market depicted in the graph, which price would allow for an effective price floor?

The Internet is an example of a technology that has _____ the production possibilities frontier.

The gap between the demand curve and the market price is called “consumer surplus.”

(Table: Coffee and Tea Units) The table shows coffee and tea units produced for the United States and Japan. If Japan decides to increase production of tea from 12 units to 24 units, the opportunity cost is: United States Coffee 25 20 15 10 5 0 Tea 0 2 4 6 8 10 Japan Coffee 58 52 44 34 20 0 Tea 0 12 24 36 48 60

(Table: Production Possibilities for Guns and Butter) The table shows the production possibilities schedule for guns and butter. As the production of butter increases, the opportunity cost of butter: Guns (hundreds) 6 5 4 3 2 1 0 Butter (tons) 0 5 10 15 20 25 30

Why does society have more influence over the amount and characteristics of capital than it has over any other resource?

(Figure: Determining Surplus and Loss) Consider the graph. If the price rises from $8 to $12, producer surplus: