Exam 2: The Economic Problem

-The above table shows production points on Sweet-Tooth Land's production possibilities frontier. Which of the following is an example of a point that is inefficient?

Consider a production possibilities frontier with corn on the vertical axis and cars on the horizontal. Unusually good weather for growing corn shifts

When economic growth occurs, the

In one day, Brandon can either plow 10 acres or plant 20 acres. In one day, Christopher can either plow 14 acres or plant 14 acres. Which of the following statements about comparative advantage is CORRECT?

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.

Marginal benefit curves slope ________ and marginal cost curves slope ________.

-Refer to the above figure. Mario is self-sufficient and so is Mia. Each produces 6 dishes of pasta and 4 pizzas. Mario and Mia decide to specialize and trade. After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and Mario's opportunity cost of a pizza has ________.

The production possibilities frontier represents

President Obama has proposed a goal that everyone complete at least one year of formal education or training beyond high school. This policy would ________ the production of current consumption goods and services and ________ the future production of consumption goods and services.

Individual economic decisions are coordinated by

If production point is inside the production possibilities frontier

Moving along a bowed-out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk

-In the figure above, a point showing an inefficient production point is point

A country has a comparative advantage in the production of a good if its opportunity cost is lower compared to another country.

Opportunity cost is best defined as

-In the figure above, the marginal cost of the second computer is

A person who has an absolute advantage in the production of all goods will

-In the figure above, if the quantity of yogurt produced increases from 2 gallons an hour to 3 gallons an hour, the opportunity cost of a gallon of yogurt in terms of ice cream is

A person has a comparative advantage in an activity whenever he or she

-In the above figure, point A is ________, and point B is ________.