Exam 2: The Economic Problem

-As Rainclouds Inc. moves downward along its production possibilities frontier, illustrated in the figure above, the opportunity cost of a raincoat

-In the figure above, the curve is known as the

Increasing opportunity cost while moving along a production possibilities frontier is the result of

-Based on the above, which figure shows the impact of a decrease in the population available to work?

-In the figure above, both Joe and Jill initially produce at point A. If Joe and Jill realize that they each possess a comparative advantage, which outcome can we expect?

-The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?

Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit. The opportunity cost of fish is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________ for Abe than for Zeb.

In general, the more resources that are devoted to technological research, the

An increase in the nation's capital stock will

-The figure above shows Roger's production possibilities frontier. Point a is an ________ point and at that point production is ________.

Production possibilities -In the above table, the production of 3 pizzas and 80 cases of soda is

When we cannot produce more of any good without giving up some other good that we value more highly, we have achieved

-According to the diagram in the figure above, what is the marginal cost of producing the 3 millionth gallon of gasoline per month?

-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?

Marginal benefit is the benefit ________ one more unit of the good and ________ of the good increases.

The slope of a production possibilities frontier that displays increasing opportunity cost is

-The opportunity cost of producing a unit of consumption at point b in the figure ________ point a.

Country A Country B -In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of X is

A marginal benefit curve shows

-An economy produces at point a on the PPF shown in the above figure. A drought reduces the amount of wheat produced and the economy produces at point b. The opportunity cost of a unit of wheat