Exam 3: The Economic Problem

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

When a person has a comparative advantage in producing a good or service,the person has

-The figure above shows the production possibilities frontier for a country.The opportunity cost of a gallon of milk between combination point A and B is

-Suppose Puerto Rico and Hawaii currently have the same production possibilities so that the above figure is the PPF for hotels and consumption goods in the two areas.Hotels are a capital good that,once built,will help produce still more consumption goods..According to the figure,which island will have more rapid economic growth?

Alice and Gene work in the mailroom,sorting and delivering mail.In order for them to benefit from specialization and trade,Alice must

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.Based on these data,

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.This table shows that

In a production possibilities frontier graph,the cost of producing more units of a good is measured by the

-In the above figure,Jack's opportunity cost of producing 1 gallon of soda is ________ of bottled water.

Hank requires 1 hour to cut the grass and 3 hours to clean the house.His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house.Which of the following statements is true?

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point E to point D,what is the opportunity cost of a DVD?

-The table above gives four production possibilities for airplanes and cruise ships.In possibility A,how many resources are devoted to the production of cruise ships?

-The figure above illustrates a small country's production possibilities frontier.Moving from point C to point B,the per unit opportunity cost of computers is ________ per computer.

-In the above table,for Mary the opportunity cost of producing a dress is ________ and the opportunity cost for Mark of producing a dress is ________.

Economic growth depends upon which of the following? i.Increasing the quantity of labor ii.Lowering the prices of goods and services iii.Advancing technology

While moving on the production possibilities frontier,if the opportunity cost of producing one good is 1/2,the opportunity cost of producing the other good (in the same range)is

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty.What impact would this law have on the nation's production possibilities frontier?

-The figure above shows the production possibilities frontiers for the United Kingdom and France.If the United Kingdom and France specialize and engage in trade,the United Kingdom will produce ________ and France will produce ________.

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from ________ is greater for ________.

What economic concepts are represented in the production possibilities model?