Exam 1: The Economic Problem

Suppose both Alpha and Beta has 10 units of economic resource. One unit of economic resource can produce: a)What is the opportunity cost of 1 cup for Alpha? b)What is the opportunity cost of 1 saucer for Beta? c)If Alpha and Beta are allow to trade,would Alpha specialize in the production of cups or saucer? Explain

Wages,interest,rent,and profits are the four factors of production.

What are the names of the factor payments?

The following table shows the production possibilities for producing rice and beans in the country of Aipotu: -Refer to the table above to answer this question.If Aipotu is presently producing 100 beans,what is the cost of producing 50 more beans?

Who said: "The ideas of economists,both when they are right and when they are wrong,are more powerful than is commonly understood"?

All of the following statements,except one,are positive statements.Which is the exception?

All of the following except one would be included in a definition of economics.Which is the exception?

Below is the production possibilities table for the country of Lavaland. (a)Use the information in the Table to draw the production possibilities curve (PP1)for Lavaland.Put tanks on the horizontal axis. (b)What is the cost to Lavaland of moving from point A to point B on its PP1? (c)What is the cost to Lavaland of moving from point E to point F? (d)What general economic principle is being illustrated by your answers to part (b)and (c)above? Explain. B.In moving from A to B each tank required the giving up of an average of 1/4 of a pizza,whereas moving from E to F one tank required giving up 5 pizzas.The increasing cost of another tank (in terms of pizzas foregone)as Lavaland moved from A to F illustrates the principle of increasing marginal opportunity cost.

Using the following information, a)which method is more efficient,Method A or Method B? b)which method is more efficient,Method A or Method C?

Economics is relevant because

Why is economics relevant?

Which of the following statements is correct for a society that emphasizes the production of capital goods over that of consumer goods?

The following table shows the production possibilities for the country of Erewhon: -Refer to the table above to answer this question.If Erewhon is producing combination D,what is the cost of producing 1 more unit of cheese?

Which of the following is a capital good?

Which form of efficiency stresses the production of the 'right type' of products?

The maximum production possible in Rome and in Cathay are as follows: -If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what is the combined output in the two counties?

All of the following except one are included in the four Cs used,throughout history,by humankind to coordinate its economies.Which is the exception?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of rye?

What is the controversy with economic growth?

Identify and briefly explain the four Cs used to organize an economy.Which one is the most recent,and when did it emerge.