Exam 2: The Economic Problem

In the United States,Texas ranks number one in the amount of installed megawatts for wind power generation and Florida ranks number one in the number of beach vacations. These facts point out that

Marginal cost is the ________ one more unit of a good and ________ of the good increases.

-The country whose production possibilities frontier is illustrated above is currently at position A on the production possibilities frontier.If it wishes to move to position B,it will

-In 2006,Country X and Country Y had the same production possibilities,illustrated in the figure above.Country X chose to produce at point A,while country Y chose to produce at point B.In 2012,most likely,Country X will be at point such as ________ while Country Y will be at point such as ________.

In an eight-hour day,Andy can produce either 24 loaves of bread or 8 pounds of butter.In an eight-hour day,Bob can produce either 8 loaves of bread or 8 pounds of butter.Andy has a comparative advantage in the production of

The quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis.As you move down toward the right along the PPF,the marginal cost of

Quantity of beans (bushels) Quantity of carrots (bushels) 5 0 4 5 8 9 2 12 1 14 0 15 -The table above represents different points along a production possibilities curve.What is the marginal cost of moving from 2 bushels to 3 bushels of beans?

Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit.Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit.The opportunity cost of fish is ________ for Abe than for Zeb,and the opportunity cost of fruit is ________ for Abe than for Zeb.

If the marginal benefit from another computer exceeds the marginal cost of the computer,then to use resources allocatively efficiently,

Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour,and that a typical American factory can produce 10 cameras or 1 computer in an hour.The opportunity cost of 20 cameras in terms of computers in Germany is

Jane produces only corn,measured in tons,and cloth,measured in bolts.For her,the opportunity cost of one more ton of corn is

Resource use is allocatively efficient when

Moving downward along a PPF,the opportunity cost of another unit of the good measured along the horizontal axis decreases.

The bowed-outward shape of a PPF

-In the figure above,point D is

Suppose a scientific breakthrough made free solar power available in unlimited quantities in the United States.The effect of this invention would be to move the

Production efficiency means that

A point inside a production possibilities frontier

-In the figure above,the allocatively efficient output of computers is

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.Which of the following is an example of a point that is unattainable?