Exam 3: The Economic Problem

-The figure above shows the production possibilities frontier for a country.If the economy is operating at point B,then the opportunity cost of another million gallons of milk is

The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies. -Using the figure above,suppose with no trade Liz and Joe each produce at point A on their respective PPFs.Then,Liz suggests that they specialize and trade.She would produces only smoothies and Joe would produce only salads.Then she would sell 10 smoothies to Joe at a price of 2.5 salads per smoothie.In this scenario,

The idea of increasing opportunity cost is reflected in the

Consider a PPF with consumption goods on the horizontal axis and capital goods on the vertical axis.If the country operates on its PPF near its ________ axis,this country ________.

On a production possibilities frontier,500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier,300 pounds of apples and 1,300 pounds of bananas can be produced.Between these points,what is the opportunity cost of producing a pound of apples?

To increase its economic growth,a nation should

-The above figure shows the production possibility frontier for a country.What is the opportunity cost per ton of rice to move from point B to point D?

When production efficiency does NOToccur, i.an economy is producing at a point within its PPF. ii.there are unemployed resources. iii.allocative efficiency cannot occur.

Which of the following is the best definition of economic growth?

If the production possibilities frontier between bottled water and water in a jug is a straight line,which of the following statements would be correct?

The negative slope of the production possibilities frontier represents the idea

Relative to Al,Joe has ________ if Joe can produce a good at a lower opportunity cost than Al.

The production possibilities frontier is the boundary between the

As an economy produces more of one of the goods on a bowed out production possibilities frontier,what happens to the opportunity cost of producing the good?

A country produces only apples and bananas.Moving from point A to point B along its production possibilities frontier,5 apples are forgone and 4 bananas are gained.What is the opportunity cost of a banana?

If the production possibilities frontier between two goods is a straight line,then the

-The figure above shows the production possibilities frontier for a country.If the country is producing at point D,then the

-Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes.The figure above illustrates his production possibilities frontier.What is Gabriel's opportunity cost of raising another 100 cows?

A point on the production possibilities frontier reflects an

Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Cindy's opportunity cost of producing 1 taco is