Exam 2: Choice, opportunity Costs, and Specialization

Which of the following ideas is illustrated by the production possibilities curve [PPC]?

A person has a comparative advantage in producing a good if:

Consider the production possibilities curve [PPC] for a country producing only cheese and wine.The first few resources transferred from cheese to wine production are:

The figure given below represents an economy producing corn and planes under different economic situations. Figure 2.2 -Refer to Figure 2.2.Assume that the economy experiences a 20% drop in the work force.Which of the following graph(s) in the figure describe(s) the change in the economy's production possibilities curve [PPC]?

Which of the following is an example of opportunity cost?

The concept of comparative advantage applies to:

While constructing a production possibilities frontier [PPF],we assume:

Specialization and trade do not allow individuals,firms,or even nations to acquire goods that lie beyond their production capabilities.

Betty goes out to enjoy a bouffe with her friend instead of practicing calculus problems for her maths examination that is due the following day.This implies that the opportunity cost of the bouffe to Betty is zero.

Economists refer to the ability of one person or nation to do something with a lower opportunity cost than another as _____.

If the general education level within a country rises significantly over time,it is likely that:

Consider a PPC with automobiles on the vertical axis and cotton on the horizontal axis.The discovery of a new fertilizer that improves crop yield will shift:

Economic growth can be illustrated by an outward shift of the PPC.

The figure given below represents an economy producing corn and planes under different economic situations. Figure 2.2 -Refer to Figure 2.2.If there is an increase in the effectiveness of pesticides,which of the following graph(s) will represent(s) the resulting shift in the production possibilities curve [PPC]?

The table given below represents butter and ham production by two countries Norway and Sweden. Table 2.5 -Refer to Table 2.5 and identify the correct statement.

It has been generally observed that most trade in the world occurs between a developed and a less-developed nation rather than between industrial or developed nations.

The figure given below represents the production possibilities curve for goods and services in an economy. Figure 2.3 -Refer to Figure 2.3.The movement from Curve X to Curve Y indicates:

The figure given below represents an economy producing corn and planes under different economic situations. Figure 2.2 -Refer to Figure 2.2.If there is an increase in the education level of the population,graph(s) _____ best illustrate(s) what will happen to the production possibilities curve [PPC].

Consider the production possibilities curve for an economy producing only two commodities wheat (represented on the X axis) and wine (represented on the Y axis).A movement up along the production possibilities curve [PPC] will imply:

Which of the following conditions will be true for a nation operating at a point lying inside its production possibilities curve?