Exam 3: The Economic Problem

Other things equal, if Mexico devotes more resources to train its population than Spain,

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?

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

As technology advances,

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.Based on these data,

-Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes.The figure above illustrates his production possibilities frontier.What is Gabriel's opportunity cost of growing another ton of potatoes?

Possibility Fish (pounds) Fruit (pounds) A 37 56 B 31 78 C 20 90 D 9 99 -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

In one hour John can produce 20 loaves of bread or 16 cakes.In one hour Phyllis can produce 30 loaves of bread or 15 cakes.Which of the following statements is true?

The opportunity cost of economic growth is ________ and the benefit of economic growth is ________.

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 table shows that

-The figure above shows a production possibilities frontier.In the figure, when the economy moves from point E to point D, what is the opportunity cost of a DVD?

-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 ________.

-The figure above shows a nation's production possibilities frontier for apples and oranges. a. What combination of goods is represented by point A? b. What combination of goods is represented by point B? c. Which point represents an unattainable combination of goods? d. The movement from point C to point D results in a free lunch.What is the free lunch?

The United States can use all its resources to produce 250 DVDs or 500 shoes.China can use all of its resources to produce 30 DVDs or 300 shoes.The opportunity cost of producing a DVD in the United States is

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 the production possibilities for an economy.The opportunity cost of a loaf of bread is ________ when moving from possibility B to possibility C.

If Toni has an absolute advantage in both sewing and ironing when compared to Tom, then

Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFs. Then, Joe suggests that they specialize and trade. He would produces only salads and Liz would produce only smoothies. Then, Joe says, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie. Liz should

-In the table above, Jack's opportunity cost for 1 pound of food is ________ and his opportunity cost for 1 pound of clothing is ________.

"If Mexico is currently operating at a point inside its production possibilities frontier, then there are unemployed or misallocated resources in Mexico." Is this statement true or false? Briefly explain your answer.

-The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?