Exam 2: Choice, opportunity Costs, and Specialization

The table given below represents butter and ham production by two countries Norway and Sweden. Table 2.5 -According to Table 2.5,Norway has a comparative advantage in _____ and an absolute advantage in _____.

Nicky makes $25,000 a year as a sales clerk.He then decides to quit his job to enter an MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs).His tuition,books,living expenses,and fees total $15,000 a year.Given this information,the annual total cost of Nicky's MBA studies is:

The reason why South Korea flourished economically relative to North Korea was that the former retained a strong version of communism and totalitarianism post World War II.

People (and all resources):

Which of the following will bring about an inward shift of a production possibilities curve [PPC]?

Specialization according to comparative advantage followed by free trade makes every economy better off.

Increasing marginal opportunity costs indicate that if a nation wants to produce more of one product,it may do so by giving up greater and greater amounts of another product.

Marginal opportunity cost refers to the:

Which of the following will result in an outward shift of the production possibilities curve [PPC]?

The figure given below represents the production possibilities curves [PPC] of a country producing wine and cars. Figure 2.1 -Refer to Figure 2.1.If the country has curve I as its PPC,_____ would most likely cause the curve to shift to curve II.

When constructing a production possibility curve for an economy,which of the following is assumed to be constant?

Assume that the United States uses 20 worker-hours to produce 1 computer and 5 worker-hours to produce 1 unit of food; assume also that Japan uses 10 worker-hours to produce 1 computer and 30 worker-hours to produce 1 unit of food.Which of the following statements is true?

Archie can paint 5 backyard fences or repair 2 cars in 8 hours,while Austin can paint 4 backyard fences or repair 2 cars in 8 hours.Identify the correct statement.

A point inside a nation's production possibilities curve can represent:

The city of Austin can buy roads or light rail.If 10 miles of roads cost $1 million and 2 miles of light rail cost $10 million,what is the city's opportunity cost of 1000 miles of roads?

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.The opportunity cost of a chili in Ohio is:

A bowed-out production possibilities curve [PPC] implies that the marginal opportunity cost of producing more of one good is:

A world-renowned brain surgeon can type twice as fast as her secretarial assistant.Which of the following statements is true in this situation?

Specialization and trade can take place only if a country is endowed with more of something compared to other countries.

If you have a choice of consuming either two apples,three oranges,or one candy bar,the opportunity cost of the candy bar is: