Exam 2: The Economic Problem

-Which graph shows the impact of scientists developing a more powerful fertilizer?

-In the table above, the marginal benefit of the 4 millionth television set is

-Refer to the table above, which gives five points on a nation's PPF. The opportunity cost of increasing the production of Y from 16 to 36 units is a total of

-The above figure illustrates Mary's production possibilities frontier. Which of the following movements show opportunity costs increasing?

Because of the existence of comparative advantage, the total output of goods is higher when each producer

-The above table shows production combinations on a country's production possibilities frontier. A movement from ________ involves the greatest opportunity cost of increasing the production of good Y.

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

If Hong Kong continues to devote more resources to accumulating capital than the United States, Hong Kong will continue to grow more rapidly than the United States.

Production efficiency occurs when production ________.

The marginal benefit from a good is the amount a person is willing to pay for

A point outside a production possibilities frontier indicates

Country A Country B -In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of X is

Property rights facilitate the development of trade.

A key factor that leads to economic growth is

"If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed resources in Mexico." Is this statement true or false? Briefly explain your answer.

-Anna and Maria produce shirts and ties. The figure above shows Anna's PPF and Maria's PPF. Anna and Maria can achieve the gains from trade if Anna produces ________ and Maria produces ________.

In one day, Sue can change the oil on 20 cars or change the tires on 20 cars. In one day, Fred can change the oil on 20 cars or change the tires on 10 cars. Sue's opportunity cost of changing oil is ________ than Fred's and her opportunity cost for changing tires is ________ than Fred's.

At one point along a PPF, 50 tons of coffee and 100 tons of bananas are produced. At another point along the same PPF, 30 tons of coffee and 140 tons of bananas are produced. The opportunity cost of a ton of coffee between these points is

When operating on its PPF, a country can produce 2 tons of butter and 200 cars OR 3 tons of butter and 150 cars. The opportunity cost of 1 ton of butter is ________ cars per ton of butter.

If two countries specialize in the production of goods in which they have a comparative advantage, they can experience gains from trade.