\[\begin{array} { | c | c | c | } \hline \text { Point } & \text { Production of } X & \text { Production of } Y \\ \hline \text { A } & 0 & 40 \\ \hline \text { B } & 3 & 36 \\ \hline \text { C } & 6 & 28 \\ \hline \text { D } & 9 & 16 \\ \hline \text { E } & 12 & 0 \\ \hline \end{array}\] -The above table shows production combinations on a country's production possibilities frontier.The opportunity cost of increasing the production of Y from 16 to 28 units is ________ units of good X per unit of good Y.

A) 12 B) 6 C) 3 D) There is no opportunity cost when moving from one point to another along a production possibilities frontier so none of the above answers is correct. A) 12 B) 6 C) 3 D) There is no opportunity cost when moving from one point to another along a production possibilities frontier so none of the above answers is correct.

\[\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity of } \\ \text { pizza } \end{array} & \begin{array} { c } \text { Marginal } \\ \text { benefit } \end{array} & \text { Marginal cost } \\ \hline 5 & 25 & 11 \\ \hline 6 & 20 & 13 \\ \hline 7 & 15 & 15 \\ \hline 8 & 10 & 17 \\ \hline \end{array}\] -The table above represents the marginal cost and marginal benefit associated with pizza (in terms of movies).What quantity of pizza should be produced if resources are to be used efficiently?

A) 5 pizzas B) 6 pizzas C) 7 pizzas D) 8 pizzas A) 5 pizzas B) 6 pizzas C) 7 pizzas D) 8 pizzas

\[\begin{array} { | c | c | c | } \hline & \begin{array} { c } \text { U.S. production } \\ \text { possibilities } \end{array} & \begin{array} { c } \text { France's production } \\ \text { possibilities } \end{array} \\ \hline \text { Steel } & 100 & 25 \\ \hline \text { Concrete } & 200 & 100 \\ \hline \end{array}\] -Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.There can be gains from exchange

A) if Agnes specializes in the production of X and Brenda specializes in the production of Y. B) if Agnes specializes in the production of Y and Brenda specializes in the production of X. C) only if Agnes becomes faster at producing X. D) only if Brenda becomes faster at producing X or Y. A) if Agnes specializes in the production of X and Brenda specializes in the production of Y. B) if Agnes specializes in the production of Y and Brenda specializes in the production of X. C) only if Agnes becomes faster at producing X. D) only if Brenda becomes faster at producing X or Y.

Exam 2: The Economic Problem

Point Production of X Production of Y A 0 40 B 3 36 C 6 28 D 9 16 E 12 0 -The above table shows production combinations on a country's production possibilities frontier.The opportunity cost of increasing the production of Y from 16 to 28 units is ________ units of good X per unit of good Y.

(Multiple Choice)

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Question 281

Which of the following is TRUE regarding markets? I. Economists define a market as a geographic location where trade occurs. II. A market enables buyers and sellers to get information about each other and to buy and sell from each other. III. Markets coordinate decisions through prices.

(Multiple Choice)

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Question 282

-Refer to the above figure.Mario is self-sufficient and so is Mia.Each produces 6 dishes of pasta and 4 pizzas.Mario and Mia decide to specialize and trade.After they have specialized and traded,compared to the initial situation,Mia's opportunity cost of pasta has and Mario's opportunity cost of a pizza has .

(Multiple Choice)

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Question 283

Production point Wheat (bushels) Soybeans (bushels) A 1,500 and 0 B 1,000 and 2,250 C 500 and 3,500 D 0 and 4,000 -The table above gives the production possibilities frontier for a nation that produces wheat and soybeans.Use the information in that table to complete the table below,which has in it the opportunity costs of moving from one production point to another.Do not forget to note the units of the opportunity costs. Movement from Opportunity cost Movement from Opportunity cost A to B D to C B to C C to B C to D B to A

(Essay)

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Question 284

-In the figure above,if Mac and Izzie both completely specialized and traded with one another,their joint output would be

(Multiple Choice)

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Question 285

The social arrangements that govern the ownership,use,and disposal of property are referred to as

(Multiple Choice)

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Question 286

If the marginal benefit of a good exceeds its marginal cost

(Multiple Choice)

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Question 287

Quantity of pizza Marginal benefit Marginal cost 5 25 11 6 20 13 7 15 15 8 10 17 -The table above represents the marginal cost and marginal benefit associated with pizza (in terms of movies).What quantity of pizza should be produced if resources are to be used efficiently?

(Multiple Choice)

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Question 288

-The figure above illustrates that if this country wishes to have F₂ - F₁ additional food by moving from point A to point B,it will

(Multiple Choice)

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Question 289

How do property rights help organize production and trade?

(Essay)

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Question 290

-In the above figure,if 2 million computers are produced per year then the ________ should be produced to achieve the allocatively efficient use of resources

(Multiple Choice)

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Question 291

-In the above figure,at point b what is the opportunity cost of producing 2 more audio tapes?

(Multiple Choice)

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Question 292

U.S. production possibilities France's production possibilities Steel 100 25 Concrete 200 100 -Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.There can be gains from exchange

(Multiple Choice)

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Question 293

Marginal benefit is the benefit

(Multiple Choice)

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Question 294

10 Extended Problems Extra study time (hours per week) Quidditch (hours per week) Harry's grade (points) 10 0 90 8 2 87 6 4 82 4 6 75 2 8 66 0 10 55 Quidditch (hours per week) Marginal benefit of an extra hour (points) 1 3.0 3 2.5 5 2.0 7 1.5 9 1.0 -Harry usually spends 10 hours a week playing Quidditch.However,his Defense Against the Dark Arts exam is coming and he needs more time to study for the exam.If he does not study at all,the lowest grade he will receive is 55.But Harry realizes that this grade is unacceptable and so he has to give up some of his Quidditch time.But how much? He asks his friend Hermione,who is very good at Magical Economics,to help him figure this out.Together,they come up with the schedules of Harry's possibilities and values in the tables above.Then Hermione quickly finds the solution.But Harry still looks puzzled.Help Hermione to explain her solution to Harry. a) Draw Harry's production possibilities frontier with the Quidditch hours on the horizontal axis and Harry's grade,starting at 55,on the vertical axis. b) What is the opportunity cost of the first two hours of Quidditch? What is the marginal cost of the 5th hour? c) What is Harry's opportunity cost of raising his grade from 82 points to 87 points? d) Draw Harry's marginal cost of playing Quidditch curve.What happens to the marginal cost if Harry spends more time playing Quidditch? e) Draw Harry's marginal benefit from playing Quidditch curve.Describe the relationship between Harry's time spent playing Quidditch and the marginal benefit from playing Quidditch. f) For how many extra hours did Hermione recommend Harry to study? Why? If Harry follows her advice,what grade will he expect? What do you think Hermione said when Harry asked why he should not spend more time playing Quidditch?

(Essay)

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Question 295

In general,the more resources that are devoted to technological research,the

(Multiple Choice)

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Question 296

Country A can produce 1 cello by giving up the production of 5 guitars.Country B can produce 1 guitar by giving up the production of 4 cellos.In which good does country A have a comparative advantage?

(Multiple Choice)

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Question 297

-In the figure above,suppose that Mac and Izzie specialize and trade to reach point c.Mac sends Izzie

(Multiple Choice)

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Question 298

One point on a PPF shows production levels at 50 tons of coffee and 100 tons of bananas.Remaining on the PPF,an increase of banana production to 140 tons shows coffee production at 30 tons.Still remaining on the PPF,coffee production at 10 tons allows banana production at 160 tons.The opportunity cost of a ton of bananas is

(Multiple Choice)

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Question 299

If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods,then ________.

(Multiple Choice)

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Question 300

Point Production of X Production of Y A 0 40 B 3 36 C 6 28 D 9 16 E 12 0 -The above table shows production combinations on a country's production possibilities frontier.The opportunity cost of increasing the production of Y from 16 to 28 units is ________ units of good X per unit of good Y.

Which of the following is TRUE regarding markets? I. Economists define a market as a geographic location where trade occurs. II. A market enables buyers and sellers to get information about each other and to buy and sell from each other. III. Markets coordinate decisions through prices.

-In the figure above,if Mac and Izzie both completely specialized and traded with one another,their joint output would be

The social arrangements that govern the ownership,use,and disposal of property are referred to as

If the marginal benefit of a good exceeds its marginal cost

Quantity of pizza Marginal benefit Marginal cost 5 25 11 6 20 13 7 15 15 8 10 17 -The table above represents the marginal cost and marginal benefit associated with pizza (in terms of movies).What quantity of pizza should be produced if resources are to be used efficiently?

-The figure above illustrates that if this country wishes to have F₂ - F₁ additional food by moving from point A to point B,it will

How do property rights help organize production and trade?

-In the above figure,if 2 million computers are produced per year then the ________ should be produced to achieve the allocatively efficient use of resources

-In the above figure,at point b what is the opportunity cost of producing 2 more audio tapes?

U.S. production possibilities France's production possibilities Steel 100 25 Concrete 200 100 -Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.There can be gains from exchange

Marginal benefit is the benefit

In general,the more resources that are devoted to technological research,the

Country A can produce 1 cello by giving up the production of 5 guitars.Country B can produce 1 guitar by giving up the production of 4 cellos.In which good does country A have a comparative advantage?

-In the figure above,suppose that Mac and Izzie specialize and trade to reach point c.Mac sends Izzie

If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods,then ________.

What Is Economics

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

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