Exam 2: Scarcity and Opportunity Costs

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2 -Which of the following would not cause any kind of an outward shift of a nation's production possibilities curve [PPC]?

The figure given below represents the production possibilities curves [PPC] of a country producing wine and cars.Figure 2.1 -If the general education level within a country rises significantly over time, it is likely that:

Figure 1.3 -Jane wins $100,000 in a lottery and immediately uses her winnings to open up a donuts shop. Her direct cost is $50,000, and she puts the remaining money in a savings account earning 10 percent annual interest. Alternatively, Jane could have placed all her lottery winnings in the 10 percent savings account. Jane's total cost of opening up a donuts shop is:

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -Economic growth can be illustrated by an outward shift of the PPC.

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. Identify the correct statement.

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5 -Assume that the United States uses 20 worker-hours to produce 1 computer and 5 worker-hours to produce 1 unit of food; assume also that Japan uses 10 worker-hours to produce 1 computer and 30 worker-hours to produce 1 unit of food. Which of the following statements is true?

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3 -If a nation specializes in activities in which opportunity costs are the lowest and then trades with other nations, it is most likely to: