Exam 2: Some Tools of Economic Analysis

-The following figure has four graphs showing the production possibilities frontier for capital goods and consumer goods.Which of the graphs below best illustrates the impact on the production possibilities frontier of a technological improvement that will make the resources used to produce consumer goods more efficient?

Opportunity cost exists because:

The law of increasing opportunity cost reflects the fact that:

The opportunity cost of choosing a particular activity:

Which of the following is not a gain from division of labor?

Comparative advantage is based on opportunity costs.

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Hans' opportunity cost of typing one page is:

If the production possibilities frontier is a straight line,_____.

A production possibilities frontier can shift inward if there is:

The law of comparative advantage states that the person who should produce a good is the person who:

The law of comparative advantage says that a person should produce a good if he or she:

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Aisha's opportunity cost of baking one cookie is:

Sunk costs:

If people specialize in producing those goods for which they possess a comparative advantage,then an economy as a whole can produce a greater quantity of goods.

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Which of the following is correct?

The opportunity cost of an activity is best measured:

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Hans and Maria would both be better off if:

A production possibilities frontier will be bowed out if:

An improvement in technology:​

The figure given below shows the production possibilities frontier for Good A and Good B.In the figure below,when moving from point f to point g,the production of: