Exam 2: Choice, opportunity Costs, and Specialization

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa. Table 2.4 -Refer to Table 2.4.If trade were to occur,what would be the most Ohio would be willing to pay for 1 chili?

The marginal cost of producing a commodity increases because of specialization.

Individuals,firms,and nations should specialize in those activities which have the highest marginal cost.

The figure given below represents the PPC in two nations - Germany and Korea,producing only two goods cars and food. Figure 2.4 -Refer to Figure 2.4 and identify the correct statement.

Which of the following best describes a tradeoff?

Which of the following statements is true about comparative advantage?

If the resources within a nation are not being fully or efficiently utilized,it means:

Private property rights:

Given below is the production possibilities schedule for capital goods and consumer goods. Table 2.3 -Consider Table 2.3.The production possibilities curve [PPC] representing this schedule would be:

Following is the production possibilities schedule for an economy producing two goods Good A and GoodB. Table 2.1 -Refer to Table 2.1.Identify the correct statement.

Which of the following actions is most likely to cause a rightward shift in a production possibilities curve [PPC]?

The tradeoffs facing a society can be illustrated in a graph known as the:

Shirley can choose between peanut butter pretzels and caramel coated popcorns for her evening snack.According to economists,her _____ cost of consuming caramel coated popcorns would be the forgone peanut butter pretzels.

If society begins by producing 3 units of X and 4 units of Y and then alters production so that it is now producing 4 units of X and 4 units of Y,and we know that the quantity and quality of resources were unchanged and that technology did not change,then:

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa. Table 2.4 -Refer to Table 2.4.If trade were to occur,what would be the least amount Ohio would be willing to accept for 1 cookie?

Given a production possibilities curve for defense goods and nondefense goods,which of the following is not true?

Consider the production possibilities curve [PPC] for a country producing only two commodities; wheat and wine.Ceteris paribus,the _____ cost of producing wine increases with each successive increase in wine production.

Bob and Bill can make 16 toys each if they devote 8 working hours in a day.Further,Bob can repair 4 cars and Bill can repair 2 cars,if they devote 8 working hours in a day.What is the opportunity cost of repairing one car to Bob?

A decrease in the quantity of available resources would be represented by:

Given below is the production possibilities schedule for capital goods and consumer goods. Table 2.3 -If the nation depicted in Figure 2.3 is producing at combination E,the opportunity cost of producing the tenth unit of consumer good is: