Exam 3: The Economic Problem

-The figure above shows the production possibilities frontier for a country.In order for it to move from producing at point A to producing at point B,the country would need to

As we move along the production possibilities frontier,

-The figure above shows a production possibilities frontier.In the figure,which of the following combinations of the two goods cannot be produced with the current resources and technology?

Production efficiency occurs

-Deb and Pete have volunteered to help their favorite charity mail out fundraiser information.The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes.If Deb and Pete specialize and trade,how many packets will be assembled?

The United States can use all its resources to produce 250 DVDs or 500 shoes.China can use all of its resources to produce 30 DVDs or 300 shoes.The opportunity cost of producing a DVD in the United States is

A country has a comparative advantage in the production of a good if it can

Other things equal,if Mexico devotes more resources to train its population than Spain,

With no international trade,a country ________ consume at a point outside of its PPF; with international trade,a country ________ consume at a point outside of its PPF.

Suppose that after specializing according to comparative advantage,a country is trading with another nation that also specializes according to its comparative advantage.Which of the following statements are true for the first country? i.It enjoys gains from trade. ii.It must have an absolute advantage in the production of the good it produces. iii.It is producing at a point beyond its PPF.

-Suppose that Germany,France,Estonia,and India all have the same production possibilities,illustrated in the figure above.Based on the production points in the figure,which country is most likely to expand its PPF to PPF₁?

What is gained when people engage in specialization and trade?

A bowed out production possibilities frontier shows

The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies. -Given the information in the figure above,Liz ________ benefit from trade with Joe because ________.

-The figure above illustrates a small country's production possibilities frontier.Based on the figure,we can tell that the nation's resources are

When a production possibilities frontier is bowed outward,as more of one good is produced,its opportunity cost

A production point beyond the production possibilities frontier represents what?

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point A.What is the opportunity cost of increasing the production of rice to 12 tons?

-The figure above shows Prakash's and Gail's production possibilities frontiers for writing books and magazine articles. a.What is Prakash's opportunity cost of a book? What is Gail's opportunity cost? Who has the comparative advantage in writing books? b.Who has the comparative advantage in writing magazine articles? c.According to their comparative advantages,who should write books and who should write magazine articles?

-The figure above shows how the PPF for cell phones and new cell-phone factories can expand.In the figure,if the economy chose the point on this year's PPF that is above point K,the next year's PPF would