Exam 2: The Economic Problem

Suppose Haiti does not have a comparative advantage in the production of shirts in 2007. The concept of explains how Haiti could achieve a comparative advantage by 2010.

A person has a comparative advantage in an activity whenever he or she

We are using resources efficiently if we can produce more of one good without producing less of some other good that we value more highly.

If a country must decrease current consumption to increase the amount of capital goods it produces today, then it must

An increase in the production of capital goods

On a diagram of a production possibilities frontier, opportunity cost is represented by

Draw a production possibilities frontier between beans and peas. Label the unattainable points, the attainable points with fully employed resources, and the attainable points with unemployed resources.

In an article in the North Texas Star Telegram (June 1, 2007), it was noted that no gasoline refineries had been built in the U.S. in 30 years and as a result, the U.S. was importing ever- increasing amounts of gasoline. HYPERLINK "http://www.econbrowser.com/" www.econbrowser.com The article reflects the fact that

-Refer to the table above, which gives five points on a nation's PPF. The production of 7 units of X And 28 units of Y is

A marginal benefit curve shows

-Refer to the production possibilities frontier in the figure above. Production point represents an production point.

A person who has an absolute advantage will

Which of the following is NOT true concerning a society's production possibilities frontier (PPF)?

-Two countries, Blue Violet and Orange Rose, produce only two goods: teapots and coffeepots. The table above gives their production possibilities. has a comparative advantage in teapots and _ has a comparative advantage in coffeepots.

To expand its PPF, a country may devote resources to accumulating capital.

Marginal benefit curves generally slope

After Hurricane Katrina devastated parts of Mississippi and New Orleans in 2005, we can be sure that the production possibilities frontier for that area temporarily

In markets, people's decisions are coordinated by

-In the figure above, Joe is producing at point A. Joe's opportunity cost of producing one shirt is

As a country that has a bowed- out production possibilities frontier produces more of one good, the opportunity cost of a unit of that good .