Exam 2: The Economic Problem

-In the figure above,point E could be obtained if

-Employees at Bank of America are good at providing banking services and workers at Ben & Jerry's are good at making ice cream. The figure above shows the marginal cost and marginal benefit curves for ice cream.If 3 million gallons of ice cream are produced,marginal cost ________ marginal benefit and ________ produced.

When we choose a particular option,we must give up alternative options.The highest-valued alternative forgone is the ________ of the option chosen.

-The figure above shows Prakash's and Gail's production possibilities frontiers for writing books and magazine articles. a) What is Prakash's opportunity cost of a book? What is Gail's opportunity cost? Who has the comparative advantage in writing books? b) Who has the comparative advantage in writing magazine articles? c) According to their comparative advantages,who should write books and who should write magazine articles?

One of the largest categories of exports from the United States is now pop culture: movies,music,TV programming,and videos.A direct conclusion from this information is that,compared to other countries,the United States has

A situation in which some resources are NOT fully utilized is represented in a production possibilities frontier diagram by

The table above shows the marginal benefit from pizza and the marginal cost of pizza in cans of soda forgone.The allocatively efficient quantity of pizza is ________ pizzas per day.

Why is it likely that the United States has an absolute advantage in goods and yet it still ends up importing them from other countries?

In an hour,Andy can make either 5 pizzas or 12 pies and Chris can make either 6 pizzas or 18 pies.________ advantage in making pizzas.

Which of the following statements can used to describe efficiency? I. Efficiently using resources means that producers make the highest profits possible. II. Using resources efficiently means that we cannot produce more of one good without producing less of another good that has a higher value. III. Resource use is efficient when we produce goods and services that people value most highly.

-In one day,Brandon can either plow 10 acres or plant 20 acres.In one day,Christopher can either plow 14 acres or plant 14 acres.Which of the following statements about comparative advantage is correct?

The rights of an owner to use and exchange property are

A person has a comparative advantage in an activity if that person can

What is comparative advantage? Give an example.

We have achieved production efficiency if we can produce more of one good without producing less of some other good.

-In the figure above,moving from production at point d to production at point a requires

The production possibilities frontier separates ________.

-In the above figure,if 4000 bicycles are produced per month,

George and Michael can gain from exchange

-Employees at Bank of America are good at providing banking services and workers at Ben & Jerry's are good at making ice cream. The figure above shows the marginal cost and marginal benefit curves for ice cream. If 1 million gallons of ice cream are being produced,