Exam 2: Scarcity and Opportunity Costs

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4 -The difference between what can be produced and consumed without specialization and trade and with specialization and trade is called:

Figure 1.3 -Shirley can choose between peanut butter pretzels and caramel coated popcorn for her evening snack. According to economists, her _____ cost of consuming caramel coated popcorn would be the forgone peanut butter pretzels.

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -Suppose a society begins by producing 3 units of X and 4 units of Y and then alters production to 4 units of X and 4 units of Y. If the quantity and quality of resources and the technology being used remain unchanged, then:

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5 -The concept of comparative advantage applies:

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3 -Refer to Table 2.3. 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 -Refer to Figure 2.4 and 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 -Free trade leads to an overall improvement in the standard of living in a country because everything is produced at the lowest possible cost.

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4 -Voluntary free trade results in:

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -Specialization according to comparative advantage followed by free trade makes every economy better off.

Figure 1.3 -In economics, the concept of opportunity cost is:

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -Gains from trade can be realized if each country specializes in the production of a good in which it has a 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 -Julio makes wine and beer. Last year he made 20 bottles of wine and 20 cases of beer. If the price of grapes goes down (making wine cheaper to make), Julio will be able to make the same amount of wine and more beer.

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 cookie in Iowa is:

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1 -A point outside the production possibilities curve [PPC]:

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5 -Refer to Table 2.5 and identify the correct statement.

Figure 1.3 -If you have a choice of consuming either two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:

Figure 1.3 -Which of the following best describes a tradeoff?

The figure given below represents the production possibilities curve for goods and services in an economy.Figure 2.3 -Which of the following actions is most likely to cause a rightward shift in a production possibilities curve [PPC]?

Figure 1.3 -Opportunity cost is best defined as:

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -If using the same resources, the U.S. workers can produce more of any good than Mexican workers, then the United States should produce every good.