Exam 3: The Economic Problem

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

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

-Huey and Steve can grow potatoes or tomatoes.The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week.Based on the table,Steve has a comparative advantage in

Production efficiency is represented by ________ a production possibilities frontier.

The opportunity cost of one more slice of pizza in terms of sodas is the

Production efficiency occurs

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

If Wendy can produce more of all goods than Tommy in an hour,then

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

For country North,the opportunity cost incurred when 3 tractors are produced is 21 watches.For country South,the opportunity cost incurred when 5 tractors are produced is 100 watches.Which country has the comparative advantage in the production of tractors?

Which of the following statements is correct?

The United States can use all of its resources to produce 50 computers or 4,000 shoes.Suppose that at world market prices,one computer exchanges for 100 shoes.Explain how the United States can gain from trade.

"When countries specialize in producing the good in which they have a comparative advantage and then trade with each other,only the country with the absolute advantage gains." Is the previous statement correct or incorrect? Briefly explain your answer.