1. 5. Match each concept in Column A with a definition or example in Column B:

Column A Column B

a. A positive externality 1. An apple pie producer trusts that apple growers will supply the apples that they promise to deliver

b. Theoretical investigation 2. The annual harvest of apples in a country from 1970 to 2000

c. Time-series data 3. Producing a combination along a production

d. A public good possibilities frontier 4. Apple growers will seek to maximize their profits

e. opportunity cost of buying an apple 5. You do not get to have an orange

f. Scarcity 6. There is only one apple producer who is able to make very high profits g. Efficient production 7. Does not take into account the passage of time h. Technological progress 8. An orchard used to grow a full crop of apples cannot also be used to grow a full crop of pears i. An institutional requirement of markets 9. The apple tree that you plant for your own enjoyment also pleases people passing by j. Market power 10. Can expand a production-possibilities frontier outward over time 11. An inspection program for imported apples k. A negative externality protects the country's orchards from a severe tree disease l. An assumption of the basic neoclassical model 12. Einstein develops the theory of relativity m. Static analysis 13. The production of apple pie creates water pollution that harms downstream communities