Exam 3: The Economic Problem

-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

-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 incur an opportunity cost of

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?

Having a comparative advantage means a nation can

The United States has an absolute advantage in producing sugar over all of the other sugar producing countries.Does this fact mean that we should not import any sugar from the other countries?

The figure above show Liz's and Joe's production possibilities for Salads and Smoothies. -Liz has a comparative advantage in ________ because ________.

A production possibilities frontier shows

-Robinson Crusoe divides his time between catching fish and gathering fruit.Part of his production possibilities frontier is given in the above table.If Mr.Crusoe is on his PPF and he increases the amount of fruit he gathers from 56 to 90 pounds,the opportunity cost is

A country produces only cans of soup and ink pens.If the country produces on its bowed outward PPF and increases the production of cans of soup,the opportunity cost of additional

Points on the PPF are all

Consider a production possibility frontier with books and tables.A combination of 1000 books and 500 tables is on the frontier.Which of the following are true? i.Production of 700 books and 400 tables is attainable but inefficient. ii.Production of 1000 books and 600 tables is unattainable. iii.Production of 500 books and 1000 tables is inside the frontier.

A production point beyond the production possibilities frontier represents what?

-The figure above shows the production possibilities frontier for a country.A combination of 3 million gallons of milk and 3 million gallons of ice cream is

The figure above show 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,

Moving from one point to another on a production possibilities frontier implies

Which of the following best describes comparative advantage?

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

-The table above presents the production possibilities of Farmer Brown.Use these data to calculate Farmer Brown's opportunity cost of additional beef as Farmer Brown moves from point A to B to C to D.Also use the data to calculate Farmer Brown's opportunity cost of additional wheat as Farmer Brown moves from point D to C to B to A.Based on these costs,does Farmer Brown use resources that are more productive in one activity than the other or are they equally productive in both uses? Explain your answer.

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point D.What would be the opportunity cost to move to point C?

-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?