Exam 3: The Economic Problem

Anaconda Bear Production point Corn (tons) Shoes (number) Production Corn point Cons (tons) Shoes (number) A 0 and 700 A 0 and 1000 B 1 and 650 B 1 and 900 C 2 and 550 C 2 and 700 D 3 and 350 D 3 and 400 E 4 and 0 E 4 and 0 -The table above gives the production possibilities frontier for two countries, Anaconda and Bear.The opportunity cost of moving from ________ is greater for ________.

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?

-The figure above shows the production possibilities frontier for a country.A combination of 2 million gallons of milk and 2 million gallons of ice cream is

Which of the following best describes comparative advantage?

Possibility Capital goods Consumption goods A 0 60 B 2 55 C 4 45 D 6 25 E 8 0 -The table above presents the production possibilities frontier for a nation.Using the information in the table, moving from possibility C to B means that

-Using the figure above, if Jack and Jill specialize and gain from trade, then

A bowed out PPF reflects which of the following ideas? I.increasing opportunity cost Ii. resources are not equally productive in all activities Iii. prices of goods increase over time

-In the table above, how many jackets must Mary forgo for every dress she makes?

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

A bowed out production possibilities frontier shows

-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 produce ________ and France will produce ________.

-The figure above shows a nation's production possibilities frontier.In the figure, point A shows

When production efficiency does NOT occur, i. an economy is producing at a point within its PPF. Ii) there are unemployed resources. Iii) allocative efficiency can not occur.

To calculate the opportunity cost per unit, you divide the decrease in the quantity of the forgone item by the

-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.

Which of the following is an assumption used when drawing a production possibilities frontier? I.Human wants and desires are limited to what is available. Ii.Only two goods are considered. Iii.The level of technology is fixed and unchanging.

Having an absolute advantage

-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, India is most likely to expand its PPF to

Possibility Bread (number) Books (number) A 0 1,000 B 100 900 C 200 700 D 300 400 E 400 0 -The table above shows a production possibilities frontier for an economy.Which of the following combinations is unattainable?

A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents