Exam 2: The Economic Problem

According to the figure above, the opportunity cost of producing another computer is

When an economy produces at its allocatively efficient production point

Explain how the production possibilities frontier illustrates scarcity.

Why does it make sense for economies to specialize according to comparative advantage and trade?

In markets, people's decisions are coordinated by

Capital accumulation definitely

Resource use is allocatively efficient when marginal benefit is

-The table above lists six points on the production possibilities frontier for grain and cars. Given this information, which of the following combinations is unattainable?

Homer and Teddy are stranded on a desert island. To feed themselves each day they can either catch fish or pick fruit. In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. Homer could pick 100 pieces of fruit or catch 150 fish. Which of the following is CORRECT?

The production possibilities frontier itself illustrates

-In the above figure, if 4000 bicycles are produced per month,

In the United States, Texas ranks number one in the amount of installed megawatts for wind power generation and Florida ranks number one in the number of beach vacations. These facts point out that

-The above table shows production combinations on a country's production possibilities frontier. What is the opportunity cost of one unit of Y when the production of good Y increases from 16 to 28 units?

-Jean can either type her term paper or create Web pages during the limited time she has available. The table above shows her PPF. a)Can Jean type 90 pages and create 2 Web pages? b)Use the above numbers to calculate the opportunity cost of a typed page as she increases her time typing and decreases time creating a Web page.

Which of the following statements can used to describe efficiency? I.Efficiently using resources means that producers make the highest profits possible. II.Using resources efficiently means that we cannot produce more of one good without producing less of another good that has a higher value. III.Resource use is efficient when we produce goods and services that people value most highly.

The opportunity cost of economic growth is

-In the figure above, if 4 million computers are produced per year then the ________ should be produced to achieve the allocatively efficient use of resources.

If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods, then ________.

Economic growth comes from ________.

-In the figure above, the opportunity cost of moving from point C to point D is