Exam 3: The Economic Problem

Moving along a country's PPF, a reason opportunity costs increase is that

"When a person can produce more of a good or service than another person, the first person has the comparative advantage in producing the good." Is this assertion correct or incorrect? Explain your answer.

Moving from one point to another on a production possibilities frontier implies

-The figure above illustrates a small country's production possibilities frontier.Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer.

As an economy produces more of one of the goods on a bowed out production possibilities frontier, what happens to the opportunity cost of producing the good?

-The figure above shows the production possibilities frontiers for the United Kingdom and France.What is the opportunity cost of one bushel of wheat for the United Kingdom?

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.Drawing a PPF with books on the vertical axis and bread on the horizontal axis, a movement from possibility B to possibility C to possibility D shows the opportunity cost of ________ moving down along the PPF.

Relative to Al, Joe has ________ if Joe can produce a good at a lower opportunity cost than Al.

A major earthquake occurs in the central part of the United States.What impact would this have on the nation's production possibilities frontier and why?

-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, which country is most likely to expand its PPF to PPF₁?

As we move along the production possibilities frontier,

A point on the production possibilities frontier reflects an

Possibility Airplanes (number) Cruise ships (number) A 100 0 B 80 20 C 50 40 D 0 60 -The table above gives four production possibilities for airplanes and cruise ships.In possibility A, how many resources are devoted to the production of cruise ships?

When all of the available factors of production are being efficiently employed, the

Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers.The opportunity cost of 1 desktop computer is

The production possibilities frontier is a boundary that separates

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 bananas?

Moving on a bowed out PPF, what happens to the opportunity cost of its production as a nation specializes more in one product?

Given the information in the figure above, Liz ________ benefit from trade with Joe because ________.

Economic growth depends upon which of the following? I.Increasing the quantity of labor. Ii. Lowering the prices of goods and services. Iii. Advancing technology.