Exam 2: Scarcity and Opportunity Costs

Figure 1.3 -Which economic concept is the closest to the saying "There's no free lunch"?

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -An economy's PPC illustrates the extent to which the economy consumes what it produces.

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. Identify the correct statement.

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -It has been generally observed that most trade in the world occurs between a developed and a less-developed nation rather than between industrial or developed nations.

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 most Ohio would be willing to pay for 1 chili?

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3 -People (and all resources):

Figure 1.3 -Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is:

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -Which of the following is an assumption made while constructing a production possibilities frontier [PPF]?

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5 -A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -If an individual can produce a good or service with a lower opportunity cost than another individual, then he or she is said to have the comparative advantage.

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2 -Refer to Figure 2.2. If there is an increase in the effectiveness of pesticides, which of the following graph(s) will represent(s) the resulting shift in the production possibilities curve [PPC]?

The figure given below represents the production possibilities curve for goods and services in an economy.Figure 2.3 -Refer to Figure 2.3. The movement from Curve X to Curve Y indicates a(n):

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5 -Economists refer to the ability of one person or nation to do something with a lower opportunity cost than another as _____.

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2 -Consider a PPC with automobiles on the vertical axis and cotton on the horizontal axis. The discovery of a new fertilizer that improves crop yield will shift:

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. The opportunity cost of a chili in Ohio is:

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5 -According to Table 2.5, Norway has a comparative advantage in the production of _____ and an absolute advantage in the production of _____.

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. Identify the correct statement.

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -Given a production possibilities curve for defense goods and non-defense goods, which of the following is not true?

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -There is no cost of using your own savings in your business.

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2 -Which of the following will bring about an inward shift of a production possibilities curve [PPC]?