Exam 3: The Economic Problem

-The table above gives the production possibilities frontier for a nation that produces wheat and soybeans.Use the information in that table to complete the table below,which has in it the opportunity costs of moving from one production point to another.Do not forget to note the units of the opportunity costs.

If a country is operating at a point of production efficiency,

-The table above shows a nation's production possibilities frontier.If the nation wants to produce 4 robots and 34 pizzas

If a nation has an absolute advantage in producing a good,then it

What does the vertical intercept of a production possibilities frontier represent?

In a production possibilities frontier diagram,the attainable production points are shown as

What is comparative advantage? Give an example.

For country Gamma the opportunity cost for producing 1 computer is 10 tons of steel.For country Beta the opportunity cost for producing 1 computer is 6 tons of steel.Which country has the comparative advantage in the production of steel?

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.Scott's opportunity cost of producing 1 taco is

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

-The figure above shows the production possibilities frontier for a country.If the country is producing at point D,then the

-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 export ________ and France will export ________.

Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis.As the country moves along the frontier closer to the horizontal axis,

In the movie Cast Away,Tom Hanks plays a FedEx efficiency expert stranded on a deserted island.While on the island,he divides his time between catching fish,gathering coconuts,painting,and building a raft.Suppose that these were Mr.Hanks' only activities.Did he face an opportunity cost from pursuing any of these activities? Why or why not?

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

Moving between two points on a PPF,a country gains 6 automobiles and forgoes 3 trucks.The opportunity cost of 1 automobile is

Moving from a point inside the production possibilities frontier to a point on the production possibilities frontier,the opportunity cost of producing more of the good on the horizontal axis

To increase its economic growth,a nation should

Consider a PPF with consumption goods on the horizontal axis and capital goods on the vertical axis.If the country operates on its PPF near its ____________ axis,this country __________.

-Two nations can produce computers and software in the amounts given in the table above.Does either nation have an absolute advantage in producing the products? Which nation has a comparative advantage in computers? Which nation has a comparative advantage in software? Explain your answers.