\[\begin{array} { | l | l | l | } \hline \text { Point } & \begin{array} { l } \text { Production of } \\ X \end{array} & \begin{array} { l } \text { Production of } \\ Y \end{array} \\ \hline \text { A } & 0 & 40 \\ \hline B & 3 & 36 \\ \hline \text { C } & 6 & 28 \\ \hline \text { D } & 9 & 16 \\ \hline \text { E } & 12 & 0 \\ \hline \end{array}\] -The above table shows production combinations on a country?s production possibilities frontier. Which of the following is an example of a production point that is inefficient?

A) 10 units of good X and 16 units of good Y B) 6 units of good X and 28 units of good Y C) 3 units of good X and 35 units of good Y D) 0 units of good X and 40 units of good Y A) 10 units of good X and 16 units of good Y B) 6 units of good X and 28 units of good Y C) 3 units of good X and 35 units of good Y D) 0 units of good X and 40 units of good Y

\[\begin{array} { | l | l | l | } \hline \text { Point } & \begin{array} { l } \text { Production } \\ \text { chocolate } \\ \text { bars } \end{array} & \begin{array} { l } \text { Production } \\ \text { cans of cola } \end{array} \\ \hline \text { A } & 0 & 100 \\ \hline \text { B } & 10 & 90 \\ \hline \text { C } & 20 & 70 \\ \hline \text { D } & 30 & 40 \\ \hline \text { E } & 40 & 0 \\ \hline \end{array}\] -The above table shows production points on Sweet-Tooth Land?s production possibilities frontier. Which of the following is an example of a point that is inefficient?

A) 20 chocolate bars and 80 cans of cola B) 38 chocolate bars and 0 cans of cola C) 0 chocolate bars and 100 cans of cola D) 32 chocolate bars and 40 cans of cola A) 20 chocolate bars and 80 cans of cola B) 38 chocolate bars and 0 cans of cola C) 0 chocolate bars and 100 cans of cola D) 32 chocolate bars and 40 cans of cola

A) allows us to increase our consumption in the present and in the future. B) is the major reason we face scarcity. C) is free. D) leads to less consumption in the present and increased consumption in the future. A) allows us to increase our consumption in the present and in the future. B) is the major reason we face scarcity. C) is free. D) leads to less consumption in the present and increased consumption in the future.

\[\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Camel } \\ \text { rides (per } \\ \text { day) } \end{array} & \begin{array} { l } \text { Marginal } \\ \text { benefit } \\ \text { (tubes of } \\ \text { sunscreen) } \end{array} & \begin{array} { l } \text { Marginal } \\ \text { cost } \\ \text { (tubes of } \\ \text { sunscreen) } \end{array} \\ \hline 1 & 20 & 11 \\ \hline 2 & 18 & 12 \\ \hline 3 & 16 & 13 \\ \hline 4 & 14 & 14 \\ \hline 5 & 12 & 15 \\ \hline 6 & 10 & 16 \\ \hline \end{array}\] -Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and marginal cost schedules for sun screen and camel rides. The allocatively efficient number of camel rides is________ .

A) 2 rides per day B) 4 rides per day C) 6 rides per day because that is the maximum number of rides D) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible A) 2 rides per day B) 4 rides per day C) 6 rides per day because that is the maximum number of rides D) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible

Exam 2: The Economic Problem

BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost. On a PPF with aircraft and mystery shows on the axes,

(Multiple Choice)

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Question 41

Which of the following does NOT help organize trade?

(Multiple Choice)

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Question 42

Point Production of X Production of Y A 0 40 B 3 36 C 6 28 D 9 16 E 12 0 -The above table shows production combinations on a country?s production possibilities frontier. Which of the following is an example of a production point that is inefficient?

(Multiple Choice)

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Question 43

Each point on the production possibilities frontier achieves allocative efficiency.

(True/False)

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Question 44

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has _advantage in producing____ .

(Multiple Choice)

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Question 45

Point Production chocolate bars Production cans of cola A 0 100 B 10 90 C 20 70 D 30 40 E 40 0 -The above table shows production points on Sweet-Tooth Land?s production possibilities frontier. Which of the following is an example of a point that is inefficient?

(Multiple Choice)

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Question 46

Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative advantage, _will gain from that trade because_

(Multiple Choice)

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Question 47

At one point along a PPF 40 tons of wheat are produced while 80 tons of rice are produced. At another point along the same PPF, 41 tons of wheat are produced while 70 tons of rice are produced. The opportunity cost of producing a ton of wheat between these points is ________per ton of wheat.

(Multiple Choice)

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Question 48

-In the above figure, the curve labeled a is the____ curve and the curve labeled b is the_curve.

(Multiple Choice)

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Question 49

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 ________.

(Multiple Choice)

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Question 50

A person has a comparative advantage in producing a particular good if that person

(Multiple Choice)

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Question 51

Moving along a bowed-out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk

(Multiple Choice)

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Question 52

The production possibilities frontier separates____________ .

(Multiple Choice)

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Question 53

Marginal cost is the opportunity cost

(Multiple Choice)

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Question 54

Marginal benefit is the

(Multiple Choice)

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Question 55

Economic growth

(Multiple Choice)

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Question 56

A circular flow diagram shows the flows from the goods and resources markets.)

(True/False)

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Question 57

-In the above figure, which point represents an attainable but inefficient production point?

(Multiple Choice)

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Question 58

Camel rides (per day) Marginal benefit (tubes of sunscreen) Marginal cost (tubes of sunscreen) 1 20 11 2 18 12 3 16 13 4 14 14 5 12 15 6 10 16 -Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and marginal cost schedules for sun screen and camel rides. The allocatively efficient number of camel rides is________ .

(Multiple Choice)

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Question 59

A president of the United States promises to produce more defense goods without any decreases in the production of other goods. This promise can be valid

(Multiple Choice)

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Question 60

BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost. On a PPF with aircraft and mystery shows on the axes,

Which of the following does NOT help organize trade?

Point Production of X Production of Y A 0 40 B 3 36 C 6 28 D 9 16 E 12 0 -The above table shows production combinations on a country?s production possibilities frontier. Which of the following is an example of a production point that is inefficient?

Each point on the production possibilities frontier achieves allocative efficiency.

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has _advantage in producing____ .

Point Production chocolate bars Production cans of cola A 0 100 B 10 90 C 20 70 D 30 40 E 40 0 -The above table shows production points on Sweet-Tooth Land?s production possibilities frontier. Which of the following is an example of a point that is inefficient?

Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative advantage, _will gain from that trade because_

At one point along a PPF 40 tons of wheat are produced while 80 tons of rice are produced. At another point along the same PPF, 41 tons of wheat are produced while 70 tons of rice are produced. The opportunity cost of producing a ton of wheat between these points is ________per ton of wheat.

-In the above figure, the curve labeled a is the____ curve and the curve labeled b is the_curve.

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 ________.

A person has a comparative advantage in producing a particular good if that person

Moving along a bowed-out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk

The production possibilities frontier separates____________ .

Marginal cost is the opportunity cost

Marginal benefit is the

Economic growth

A circular flow diagram shows the flows from the goods and resources markets.)

-In the above figure, which point represents an attainable but inefficient production point?

A president of the United States promises to produce more defense goods without any decreases in the production of other goods. This promise can be valid

What Is Economics

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 2: The Economic Problem

BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost. On a PPF with aircraft and mystery shows on the axes,

Which of the following does NOT help organize trade?

Point Production of X Production of Y A 0 40 B 3 36 C 6 28 D 9 16 E 12 0 -The above table shows production combinations on a country?s production possibilities frontier. Which of the following is an example of a production point that is inefficient?

Each point on the production possibilities frontier achieves allocative efficiency.

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has _______advantage in producing__________ .

Point Production chocolate bars Production cans of cola A 0 100 B 10 90 C 20 70 D 30 40 E 40 0 -The above table shows production points on Sweet-Tooth Land?s production possibilities frontier. Which of the following is an example of a point that is inefficient?

Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative advantage, _________will gain from that trade because_________

At one point along a PPF 40 tons of wheat are produced while 80 tons of rice are produced. At another point along the same PPF, 41 tons of wheat are produced while 70 tons of rice are produced. The opportunity cost of producing a ton of wheat between these points is ________per ton of wheat.

-In the above figure, the curve labeled a is the____________ curve and the curve labeled b is the_________curve.

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 ________.

A person has a comparative advantage in producing a particular good if that person

Moving along a bowed-out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk

The production possibilities frontier separates____________ .

Marginal cost is the opportunity cost

Marginal benefit is the

Economic growth

A circular flow diagram shows the flows from the goods and resources markets.)

-In the above figure, which point represents an attainable but inefficient production point?

A president of the United States promises to produce more defense goods without any decreases in the production of other goods. This promise can be valid

What Is Economics

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has _advantage in producing____ .

Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative advantage, _will gain from that trade because_

-In the above figure, the curve labeled a is the____ curve and the curve labeled b is the_curve.