Exam 2: Scarcity and Opportunity Costs

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2 -Refer to Figure 2.2. Assume that the economy experiences a 20% drop in the work force. Which of the following graph(s) in the figure describe(s) the change in the economy's production possibilities curve [PPC]?

Given below is the production possibilities schedule for capital goods and consumer goods.Table 2.2 -Consider Table 2.2. The production possibilities curve [PPC] representing this schedule would be:

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4 -Refer to Table 2.4. If the countries were to engage in trade, what would be the least amount Ohio would accept for 1 cookie?

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -Which of the following conditions is true for a nation operating at a point lying inside its production possibilities curve?

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -Refer to Table 2.1. According to the production possibilities schedule, in the table above, which of the following statements is true?

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5 -Which of the following statements is true about comparative advantage?

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -Betty goes out to enjoy a bouffe with her friend instead of practicing calculus problems for her maths examination that is due the following day. This implies that the opportunity cost of the bouffe to Betty is zero.

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -According to economists, human activity is unresponsive to changes in costs.

Figure 1.3 -Which of the following is an example of opportunity cost?

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4 -Assume that a doctor makes $200 per hour, a lawyer $250 per hour, an architect $140 per hour, a professor $50 per hour, and a waiter $35 per hour. Which of these professionals is most likely to spend time to negotiate with a car dealer?

Given below is the production possibilities schedule for capital goods and consumer goods.Table 2.2 -If the nation depicted in Figure 2.3 is producing at combination E, the opportunity cost of producing the tenth unit of consumer good is:

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -Consider a nation with an endowment of iron ore and petroleum. If the nation specializes in the production of aluminum and gasoline instead of steel we can say that it is operating:

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3 -Consider the production possibilities curve [PPC] for a country producing only cheese and wine. The first few resources transferred from cheese to wine production are:

The figure given below represents the production possibilities curves [PPC] of a country producing wine and cars.Figure 2.1 -Refer to Figure 2.1. If the country's PPC curve is curve II, then:

The figure given below represents the production possibilities curves [PPC] of a country producing wine and cars.Figure 2.1 -Refer to Figure 2.1. If the country has curve I as its PPC, then _____ would most likely cause the curve to shift to curve II.

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -If the resources within a nation are not being fully or efficiently utilized, it means:

Given below is the production possibilities schedule for capital goods and consumer goods.Table 2.2 -A decrease in the quantity of available resources would be represented by:

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3 -Which of the following ideas is illustrated by the production possibilities curve [PPC]?

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -A point inside a nation's production possibilities curve can represent:

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4 -Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bill?