Exam 2: The Economic Problem

-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.

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 Y is

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

Production efficiency means that

-In the figure above, Jill is producing at point A. Jill's opportunity cost producing one pair of pants is

Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or 1 computer in an hour. The opportunity cost of 20 cameras in terms of computers in Germany is

-Refer to the production possibilities frontier in the figure above. Suppose a country is producing at point a. A movement to point ________ means that the country ________.

The production possibilities frontier is

-In the above figure, which point represents an attainable but inefficient production point?

-Two countries, Alpha and Beta, have identical production possibilities frontiers illustrated above. If Alpha produces at point a and Beta produces at point b, then ________.

The bowed-outward shape of a PPF

At the current point of production on a nation's production possibilities frontier, the marginal benefit of a slice of pizza is 500 tacos per slice of pizza while the marginal cost of producing a slice of pizza is 750 tacos per slice of pizza. To be allocatively efficient, what should be done?

Economic growth

Technological change

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

The PPF shifts if

Comparative advantage is

-The figure above shows the production possibilities frontiers for four nations that have identical production possibilities frontiers in the present. The one that will grow most rapidly in the future is most likely to be producing at point

-In the figure above, at the allocatively efficient level of computer production consumers are willing to give up

If a country must decrease current consumption to increase the amount of capital goods it produces today, then it must