Question 1

The negative slope of the production possibilities frontier represents the idea

Accepted Answer

A) that free lunches are possible. 
B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another. 
C) of unemployment. 
D) of inefficient production. 
E) that prices rise as less is produced. 
A) that free lunches are possible. 
B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another. 
C) of unemployment. 
D) of inefficient production. 
E) that prices rise as less is produced.

Question 2

John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,

Accepted Answer

A) John cannot benefit from trade with Allen. 
B) Allen cannot benefit from trade with John. 
C) John has a comparative advantage in pizza. 
D) John has an absolute advantage in pizza. 
E) Allen has a comparative advantage in pizza. 
A) John cannot benefit from trade with Allen. 
B) Allen cannot benefit from trade with John. 
C) John has a comparative advantage in pizza. 
D) John has an absolute advantage in pizza. 
E) Allen has a comparative advantage in pizza.

Question 3

3.5 Chapter Figures
  
-The figure above shows a production possibilities frontier. In the figure, when the economy moves from point C to point B, what is the opportunity cost of a DVD?

Accepted Answer

A) 0.5 cell phones 
B) 2 cell phones 
C) 0.5 million cell phones 
D) 2 million cell phones 
E) zero 
A) 0.5 cell phones 
B) 2 cell phones 
C) 0.5 million cell phones 
D) 2 million cell phones 
E) zero

Question 4

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. Scott's opportunity cost of producing 1 taco is

Accepted Answer

A) 1/2 of a pizza. 
B) 1 pizza. 
C) 2 pizzas. 
D) 20 pizzas. 
E) 2 tacos. 
A) 1/2 of a pizza. 
B) 1 pizza. 
C) 2 pizzas. 
D) 20 pizzas. 
E) 2 tacos.

Question 5

Rika's opportunity cost of producing 100 t-shirts is 50 jackets. Jeff's opportunity cost of producing 75 t-shirts is 25 jackets. Who should specialize in jackets?

Accepted Answer

A) Rika 
B) Jeff 
C) neither 
D) both 
E) More information is needed about their production possibilities frontiers to determine who should specialize in jackets. 
A) Rika 
B) Jeff 
C) neither 
D) both 
E) More information is needed about their production possibilities frontiers to determine who should specialize in jackets.

Question 6

Points inside the PPF are all

Accepted Answer

A) unattainable and have fully employed resources. 
B) attainable and have fully employed resources. 
C) unattainable and have some unemployed resources. 
D) attainable and have some unemployed resources. 
E) unaffordable. 
A) unattainable and have fully employed resources. 
B) attainable and have fully employed resources. 
C) unattainable and have some unemployed resources. 
D) attainable and have some unemployed resources. 
E) unaffordable.

Question 7

-The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The opportunity cost of moving from ________ is greater for ________.

Accepted Answer

A) point A to point B; Anaconda 
B) point B to point A; Bear 
C) point D to point E; Bear 
D) point E to point D; Bear 
E) any point to any other point; Bear 
A) point A to point B; Anaconda 
B) point B to point A; Bear 
C) point D to point E; Bear 
D) point E to point D; Bear 
E) any point to any other point; Bear

Question 8

-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, Germany is most likely to expand its PPF to

Accepted Answer

A) PPF₃ or PPF₂. 
B) PPF₃. 
C) PPF₁. 
D) PPF₁. or PPF₂. 
E) PPF₂. 
A) PPF₃ or PPF₂. 
B) PPF₃. 
C) PPF₁. 
D) PPF₁. or PPF₂. 
E) PPF₂.

Question 9

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

Accepted Answer

A) increasing the production of both goods. 
B) decreasing the production of both goods. 
C) increasing the production of one good and decreasing the production of another. 
D) holding the production levels of both goods constant. 
E) changing the amount of factors of production that are employed. 
A) increasing the production of both goods. 
B) decreasing the production of both goods. 
C) increasing the production of one good and decreasing the production of another. 
D) holding the production levels of both goods constant. 
E) changing the amount of factors of production that are employed.

Question 10

$$\begin{array} { c c c } 
\hline \text { Possibility } & \text { Capital goods } & \text { Consumption goods } \
\hline \text { A } & 0 & 60 \
\text { B } & 2 & 55 \
\text { C } & 4 & 45 \
\text { D } & 6 & 25 \
\text { E } & 8 & 0 \
\hline
\end{array}$$
-The table above presents the production possibilities frontier for a nation. Using the information in the table, when moving from possibility A to B to C to ultimately E, the cost of a unit of capital goods in terms of consumption goods

Accepted Answer

A) increases. 
B) decreases. 
C) remains the same. 
D) decreases from possibility A to C, and then increases from possibility C to D. 
E) cannot be calculated. 
A) increases. 
B) decreases. 
C) remains the same. 
D) decreases from possibility A to C, and then increases from possibility C to D. 
E) cannot be calculated.

Question 11

A bowed out production possibilities frontier shows

Accepted Answer

A) that resources are equally productive in all uses. 
B) increasing opportunity cost. 
C) that resources are not equally productive in all uses. 
D) Both answers B and C are correct. 
E) Both answers A and B are correct. 
A) that resources are equally productive in all uses. 
B) increasing opportunity cost. 
C) that resources are not equally productive in all uses. 
D) Both answers B and C are correct. 
E) Both answers A and B are correct.

Question 12

-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 ________.

Accepted Answer

A) 1 ton of corn; 1 ton of corn 
B) 650 pairs of shoes; 900 pairs of shoes 
C) 550 pairs of shoes; 700 pairs of shoes 
D) 100 pairs of shoes; 200 pairs of shoes 
E) 50 pairs of shoes; 100 pairs of shoes 
A) 1 ton of corn; 1 ton of corn 
B) 650 pairs of shoes; 900 pairs of shoes 
C) 550 pairs of shoes; 700 pairs of shoes 
D) 100 pairs of shoes; 200 pairs of shoes 
E) 50 pairs of shoes; 100 pairs of shoes

Question 13

If the production possibilities frontier between bottled water and water in a jug is a straight line, which of the following statements would be correct?

Accepted Answer

A) A large amount of unemployment must exist. 
B) Resources are equally productive at producing either product. 
C) There is no tradeoff between the two goods. 
D) There is no decrease in the production of one good when the production of the other is increased. 
E) Producing more of one good gives the economy a free lunch. 
A) A large amount of unemployment must exist. 
B) Resources are equally productive at producing either product. 
C) There is no tradeoff between the two goods. 
D) There is no decrease in the production of one good when the production of the other is increased. 
E) Producing more of one good gives the economy a free lunch.

Question 14

Which of the following is correct about comparative advantage?

Accepted Answer

A) Some countries will have a comparative advantage in everything. 
B) Having a comparative advantage without an absolute advantage is impossible. 
C) A comparative advantage in a good means that the country can produce more of the good than any other country. 
D) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country. 
E) None of the above answers is correct. 
A) Some countries will have a comparative advantage in everything. 
B) Having a comparative advantage without an absolute advantage is impossible. 
C) A comparative advantage in a good means that the country can produce more of the good than any other country. 
D) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country. 
E) None of the above answers is correct.

Question 15

"When a person is more productive in producing 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.

Accepted Answer

The assertion is incorrect. The statemen

Question 16

Points on the PPF are all

Accepted Answer

A) unattainable and have fully employed resources. 
B) free lunches. 
C) inefficient. 
D) attainable and have some unemployed resources. 
E) production efficient. 
A) unattainable and have fully employed resources. 
B) free lunches. 
C) inefficient. 
D) attainable and have some unemployed resources. 
E) production efficient.

Question 17

$$\begin{array} { c c c } 
\text { Possibility } & \begin{array} { c } 
\text { Bread } \
\text { (number) }
\end{array} & \begin{array} { c } 
\text { Books } \
\text { (number) }
\end{array} \
\hline \text { A } & 0 & 1,000 \
\text { B } & 100 & 900 \
\text { C } & 200 & 700 \
\text { D } & 300 & 400 \
\text { E } & 400 & 0 \
\hline
\end{array}$$
-The table above shows a production possibilities frontier for an economy. Which of the following combinations is unattainable?

Accepted Answer

A) 0 loaves of bread and 800 books 
B) 100 loaves of bread and 800 books 
C) 200 loaves of bread and 800 books 
D) 300 loaves of bread and 200 books 
E) 0 loaves of bread and 0 books 
A) 0 loaves of bread and 800 books 
B) 100 loaves of bread and 800 books 
C) 200 loaves of bread and 800 books 
D) 300 loaves of bread and 200 books 
E) 0 loaves of bread and 0 books

Question 18

3.5 Chapter Figures
  
-The figure above shows a production possibilities frontier. In the figure, the economy faces a tradeoff when ________ cell phones and ________ DVDs. are produced.

Accepted Answer

A) 3 million; 9 million 
B) 2 million; 9 million 
C) 3 million; 8 million 
D) 4.5 million; no 
E) 5 million; 15 million 
A) 3 million; 9 million 
B) 2 million; 9 million 
C) 3 million; 8 million 
D) 4.5 million; no 
E) 5 million; 15 million

Question 19

-The table above shows the amounts of cloth and cheese that China and Pakistan can produce in an hour. Which country has the comparative advantage in cloth and which country has the comparative advantage in cheese?

Accepted Answer

In China, to produce 8 cloths has an opp

Question 20

Which of the following statements is correct?

Accepted Answer

A) If capital is idle, the economy is producing at its full potential. 
B) The production possibilities frontier shows that there are no limits to production. 
C) A tradeoff is a limit that forces an exchange or a substitution of one thing for something else. 
D) Any point on or within the PPF is production efficient. 
E) None of the above answers are correct. 
A) If capital is idle, the economy is producing at its full potential. 
B) The production possibilities frontier shows that there are no limits to production. 
C) A tradeoff is a limit that forces an exchange or a substitution of one thing for something else. 
D) Any point on or within the PPF is production efficient. 
E) None of the above answers are correct.

The negative slope of the production possibilities frontier represents the idea

John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,

3.5 Chapter Figures -The figure above shows a production possibilities frontier. In the figure, when the economy moves from point C to point B, what is the opportunity cost of a DVD?

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. Scott's opportunity cost of producing 1 taco is

Rika's opportunity cost of producing 100 t-shirts is 50 jackets. Jeff's opportunity cost of producing 75 t-shirts is 25 jackets. Who should specialize in jackets?

Points inside the PPF are all

-The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The opportunity cost of moving from is greater for .

-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, Germany is most likely to expand its PPF to

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

A bowed out production possibilities frontier shows

-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 .

If the production possibilities frontier between bottled water and water in a jug is a straight line, which of the following statements would be correct?

Which of the following is correct about comparative advantage?

"When a person is more productive in producing 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.

Points on the PPF are all

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?

3.5 Chapter Figures -The figure above shows a production possibilities frontier. In the figure, the economy faces a tradeoff when cell phones and DVDs. are produced.

-The table above shows the amounts of cloth and cheese that China and Pakistan can produce in an hour. Which country has the comparative advantage in cloth and which country has the comparative advantage in cheese?

Which of the following statements is correct?

Getting Started

The Us and Global Economies

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 3: The Economic Problem

The negative slope of the production possibilities frontier represents the idea

John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,

3.5 Chapter Figures -The figure above shows a production possibilities frontier. In the figure, when the economy moves from point C to point B, what is the opportunity cost of a DVD?

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. Scott's opportunity cost of producing 1 taco is

Rika's opportunity cost of producing 100 t-shirts is 50 jackets. Jeff's opportunity cost of producing 75 t-shirts is 25 jackets. Who should specialize in jackets?

Points inside the PPF are all

-The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The opportunity cost of moving from ________ is greater for ________.

-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, Germany is most likely to expand its PPF to

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

A bowed out production possibilities frontier shows

-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 ________.

If the production possibilities frontier between bottled water and water in a jug is a straight line, which of the following statements would be correct?

Which of the following is correct about comparative advantage?

"When a person is more productive in producing 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.

Points on the PPF are all

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?

3.5 Chapter Figures -The figure above shows a production possibilities frontier. In the figure, the economy faces a tradeoff when ________ cell phones and ________ DVDs. are produced.

-The table above shows the amounts of cloth and cheese that China and Pakistan can produce in an hour. Which country has the comparative advantage in cloth and which country has the comparative advantage in cheese?

Which of the following statements is correct?

Getting Started

The Us and Global Economies

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

-The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The opportunity cost of moving from is greater for .

-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 .

3.5 Chapter Figures -The figure above shows a production possibilities frontier. In the figure, the economy faces a tradeoff when cell phones and DVDs. are produced.