Exam 2: The Economic Problem

Any point on a production possibilities frontier (PPF) itself is

In order to societies to reap the gains from trade, it is necessary to

Opportunity cost is illustrated in a production possibilities frontier (PPF) by a movement

-The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?

Which of the following statements regarding the production possibilities frontier is TRUE?

-Victor currently produces nuts and bolts at point a in the figure. Victor's marginal cost of producing an additional nut is ________.

-In 2012, 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 2018, most likely, Country X will be at point such as ________ while Country Y will be at point such as ________.

The state of Georgia offers free college tuition to high school students with a "B" average. In 2007, the state raised the requirement so that fewer students qualified for the scholarship. At the same time, Georgia increased state spending on health care. Suppose that college education is on the vertical axis and health care is on the horizontal axis of a PPF. These changes

Production possibilities -In the above table, the production of 3 pizzas and 35 cases of soda is

A country that must decrease production of one good in order to increase the production of another

When the production possibilities frontier is bowed outwards, the opportunity cost of producing more of one good

Blue Violet's Sweet Pansy'sproduction possibilities production possibilities -Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities.

Blue Violet's Sweet Pansy'sproduction possibilities production possibilities -Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities. With specialization and trade, Sweet Pansy produces ________ and Blue Violet produces ________.

-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. As Ben & Jerry's increases production from 1 to 2 million gallons of ice cream, the

Markets are best defined as

As long as technology increases, economic growth is free.

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

Increasing opportunity cost implies that

Increasing opportunity cost occurs along a production possibilities frontier because

BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost. On a PPF with aircraft and mystery shows on the axes