Exam 3: The Economic Problem

-The figure above shows the production possibilities frontier for a country.How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

"When a person has an absolute advantage in producing a good,the person necessarily has a lower opportunity cost of producing it." Is this assertion true or false?

The opportunity cost of a good increases as more of it is produced because

-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 PPF₃?

-The above figure shows the production possibility frontier for an economy.The point or points that are attainable are

The production possibilities frontier is a boundary that separates

The saying "There's no such thing as a free lunch," applies

-The above figure shows the production possibility frontier for an economy.The point or points that are not attainable are

When Mik has an absolute advantage in the production of two goods over Tommy,Mik

What is the relationship between the bowed out shape of the production possibilities frontier and the increasing opportunity cost of a good as more of it is produced?

-The figure above shows how the PPF for cell phones and new cell-phone factories can expand.In the figure,if the economy produced 4 million cell phones using the resources efficiently,the PPF would

-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 below point K,the next year's PPF would

-The figure above shows a production possibilities frontier.In the figure,which of the following combinations of the two goods are efficient?

A bowed out production possibilities frontier shows

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from production point B to production point C for Anaconda equals ________ and for Bear equals ________.

Once you find the opportunity cost of producing one unit of a good,to find the opportunity cost of producing the other good,you must

In one hour John can produce 20 loaves of bread or 16 cakes.In one hour Phyllis can produce 30 loaves of bread or 15 cakes.Which of the following statements is true?

Specialization and trade make a country better off because with trade the country can consume at a point

Japan can use all of its resources to produce 100 videos or 400 shoes.China can use all of its resources to produce 25 videos or 200 shoes.Which nation has the comparative advantage in shoes and which nation has the comparative advantage in videos?

"If Mexico is currently operating at a point inside its production possibilities frontier,then there are unemployed or misallocated resources in Mexico." Is this statement true or false? Briefly explain your answer.