Exam 2: Economic Models: Trade-Offs and Trade

All points outside the production possibility frontier are:

An economy that has the LOWEST opportunity cost of producing a particular good is said to have a(n):

Use the following to answer questions: \\ -(Figure: Bicycles and Radishes I) Use Figure: Bicycles and Radishes I. The figure shows the production possibility frontiers for two countries that produce only radishes and bicycles. The axes of the two graphs are measured in equivalent units. Country A is operating at point M, and country B is operating at point N. The opportunity cost of producing an additional ton of radishes would be greater in:

Use the following to answer questions: \\ -(Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II. If an economy is producing at X, the opportunity cost to it of producing at Y is _____ units of consumer goods per period.

Use the following to answer questions: \\ -(Figure: Omar's Production Possibilities) Use Figure: Omar's Production Possibilities. Which point or points represent(s) a feasible combination of coconuts and fish?

Which statement is positive?

Greta starts using a new baking technique, and she can now do twice as much of everything. In a single day, Greta can now make 10 cakes or 8 pies, rather than the 5 cakes and 4 pies she could previously bake. Greta's production possibility frontier has _____, and her opportunity cost of making pies _____.

Use the following to answer questions: \\ -(Figure: Omar's Production Possibilities) Use Figure: Omar's Production Possibilities. The opportunity cost for Tom to move from point C on the curve to point A is:

Use the following to answer questions: -(Figure: Good X and Good Y) Use Figure: Good X and Good Y. If we move from point B to point C in the figure, the x-variable has _____ units and the y-variable has _____ units.

Use the following to answer questions: \\ -(Figure: Production Possibility Frontier) Use Figure: Production Possibilities Frontier. Points A, B, E, and F:

Use the following to answer questions: \\ -(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. If the economy produces two units of consumer goods per period, it also can produce, at MOST, _____ units of capital goods per period.

Use the following to answer questions: \\ -(Figure: Comparative Advantage) Use Figure: Comparative Advantage. The opportunity cost of producing 1 box of oranges for Eastland is _____ box(es) of peaches.

Before 2000, the mortgage-backed securities market was relatively small because:

Use the following to answer questions: \\ -(Figure: Consumer and Capital Goods) Use Figure: Consumer and Capital Goods. Assume the economy's current production possibilities frontier is given by curve 1. Point Z:

A simplified version of reality that is used to clarify economic situations is called a(n):

A positive relationship between swimsuits purchased and ice cream purchased could be the result of:

Use the following to answer questions: -(Figure: Seasonally Adjusted Unemployment Rate) Use Figure: Seasonally Adjusted Unemployment Rate. The distance between each labeled point on the horizontal axis is one year, and the distance between each labeled point on the vertical axis is one percentage point of unemployment. What is the approximate slope of the graph between 1/2004 and 1/2006 (using percentage point and years as the units on the vertical and horizontal axes, respectively)?

A mortgage-backed security is an asset that:

In one hour, the United States can produce 25 tons of steel or 250 automobiles. In one hour, Japan can produce 30 tons of steel or 275 automobiles. This information implies that:

A production possibility frontier that is a straight line sloping down from left to right suggests that: