Exam 2: The Economic Problem

Use the figure below to answer the following question. Figure 2.1.5 -The graph in Figure 2.1.5 shows Sunland's PPF for food and sunscreen. Sunland faces ________ opportunity cost of food and ________ opportunity of sunscreen.

Mexico and Canada produce both oil and apples using labour only. A barrel of oil is produced with 4 hours of labour in Mexico and 8 hours of labour in Canada. A bushel of apples is produced with 8 hours of labour in Mexico and 12 hours of labour in Canada. Canada has

Use the information below to answer the following questions. Fact 2.4.2 Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. -Given Fact 2.4.2, what would be the total output of X and Y in an eight-hour day if Agnes and Brenda each specialized in producing the good in which they have a comparative advantage?

Use the figure below to answer the following questions. Figure 2.1.6 -Figure 2.1.6 shows the production possibilities frontier for a firm that produces pet food. This PPF ________ illustrate scarcity because ________.

The existence of increasing opportunity cost

When producing at a point of production efficiency,

If additional units of any good could be produced at a constant opportunity cost, the production possibilities frontier would be

Use the figure below to answer the following questions. Figure 2.1.2 -Refer to the production possibilities frontier in Figure 2.1.2. Suppose that 50 units of Y are currently being produced. Then

A movement along the production possibilities frontier will result from

Use the table below to answer the following questions. Table 2.1.1 The following table gives points on the production possibilities frontier for goods X and Y. -Refer to Table 2.1.1. The opportunity cost of increasing the production of X from 8 to 12 units is

In general, the higher the proportion of resources devoted to technological research in an economy, the

The principal reason that production possibilities have grown more rapidly in Hong Kong than in Canada over the last 50 years is because

Use the figure below to answer the following questions. Table 2.4.1 The planets of Vulcan and Romulus each produce goods X and Y. The following table gives points on their production possibilities frontiers. -Refer to Table 2.4.1. Which one of the following is true?

Tom takes 20 minutes to cook an egg and 5 minutes to make a sandwich. Jerry takes 15 minutes to cook an egg and 3 minutes to make a sandwich. Both individuals gain if

Use the figure below to answer the following questions. Figure 2.2.1 -In Figure 2.2.1, the curve labelled A is the ________ curve and the curve labelled B is the ________ curve.

A technological improvement is represented by

The main functions of markets include

It benefits people to specialize and trade with each other because

The Government of Canada promises to produce more defence goods without any decrease in the production of other goods. This promise is valid

A factory produces vacuum cleaners and floor polishers. The factory adopts a new technology that allows it to use fewer resources to build floor polishers. With this new technology, the opportunity cost of producing a vacuum cleaner ________ and the factory is ________ efficient.