Exam 3: The Economic Problem

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Possibility Robots Pizza A 0 40 B 1 39 C 2 37 D 3 34 E 4 30 F 5 20 G 6 0 -The table above shows a nation's production possibilities frontier.If the nation wants to produce 4 robots and 34 pizzas

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Why is a production possibilities frontier bowed out (concave)?

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The saying "There's no such thing as a free lunch," applies

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

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What does it mean when a "free lunch" is available? Relate your answer to the production possibilities frontier.

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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 production point B to production point C for Anaconda equals ________ and for Bear equals ________.

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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?

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When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods

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

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What economic concepts are represented in the production possibilities model?

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How can a combination of goods be unattainable?

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To find the opportunity cost of producing one more unit of any product while on the production possibilities frontier requires

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

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By specializing and trading, a country is able to

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  -The above figure shows the production possibility frontier for a country. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of rice to 12 tons? -The above figure shows the production possibility frontier for a country. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of rice to 12 tons?

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When Mik has an absolute advantage in the production of two goods over Tommy, Mik

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Potatoes (pounds) Tomatoes (pounds) Huey 12 or 8 Steve 6 or 2 -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

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As an economy increasingly specializes in producing one good, the opportunity cost of that good increases.The opportunity cost increases because

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A production possibilities frontier shows

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Describe the differences between tradeoffs and free lunches in terms of a PPF.

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