Exam 3: The Economic Problem

If John can produce 10 chairs or 20 lamps during a week while Mary can produce 12 chairs or 22 lamps in the same time, who has the absolute advantage in producing each good?

-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 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 ________.

If a nation has an absolute advantage in producing a good, then it

What is gained when people engage in specialization and trade?

-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 raising another 100 cows?

-In the above table, for Mary the opportunity cost of producing a dress is ________ and the opportunity cost for Mark of producing a dress is ________.

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

The United States produced approximately ________ worth of goods and services in 2011.

As we move along the production possibilities frontier,

Why does the production possibilities frontier have a bowed out shape rather than being a straight line?

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

The production possibilities frontier illustrates the

-The figure above shows the production possibilities frontier for a country. A combination of 4 million gallons of milk and 4 million gallons of ice cream is

When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost

In the production possibilities frontier model, an unattainable point lies

Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As a country moves along the frontier closer to the vertical axis,

Japan can use all of its resources to produce 100 videos or 400 shoes. China can use all of its resources to produce 25 videos or 200 shoes. Which nation has the comparative advantage in shoes and which nation has the comparative advantage in videos?

The production possibilities frontier is a graph showing the

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