Exam 2: Economic Models

"All other relevant factors remain unchanged" is another way of saying:

Jim is being paid $7.25 an hour to work at a restaurant. In the circular flow this is an example of a:

A statement that the minimum wage should be increased is a:

If farmer Sam MacDonald can produce 200 pounds of cabbages and no potatoes or no cabbages and 100 pounds of potatoes and if he faces a linear production possibility frontier, the opportunity cost of producing an additional pound of potatoes is _____ pound(s) of cabbage.

An economy that has the lowest opportunity cost of producing a particular good is said to have:

Which of the following is a positive economic statement?

All points on the production possibility frontier are:

Use the following to answer questions : Figure: Production Possibility Frontier -(Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier. If the economy is operating at point B, producing 16 cars and 12 computers per period, a decision to move to point E and produce 18 computers:

Use the following to answer questions : Figure: Bicycles and Radishes I -(Figure: Bicycles and Radishes I) Look at the figure Bicycles and Radishes I. It shows production possibility frontiers for two countries that produce only radishes and bicycles. The axes of the two graphs are measured in equivalent units. Country A is operating at point M, and country B is operating at point N. Suppose country A discovers a new technology that greatly increases its ability to produce bicycles but has no effect on its ability to produce radishes. This would:

The U.S. production possibility frontier would _____ if all computers using Microsoft operating systems contracted a virus that deleted all information on those computers.

Use the following to answer questions : -(Table: Coffee and Salmon Production Possibilities II) Look at the table Coffee and Salmon Production Possibilities II. This table shows the maximum amounts of coffee and salmon, both measured in pounds, that Brazil and Alaska can produce if they just produce one good. Brazil has a comparative advantage in producing:

Use the following to answer questions : Figure: Guns and Butter -(Figure: Guns and Butter) Look at the figure Guns and Butter. The combination of guns and butter at point H:

Use the following to answer questions : -(Table: Production of Good Z and Good X in Urbanville) Look at the table Production of Good Z and Good X in Urbanville. If this table shows the production possibility frontier and if Urbanville is producing 5 of Z and 50 of X, this combination is:

In 2000, the market for mortgage-backed securities:

The models that economists construct:

The U.S. production possibility frontier will _____ if there is a large influx of working-age immigrants.

Use the following to answer questions : Figure: Production Possibility Frontier -(Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier. If the economy is producing 8 cars and 12 computers per period:

One of the controversies surrounding the United States' energy markets is the trade-off between energy production and clean air. Assuming clean air has value, the United States will be on its production possibility frontier if and only if:

Economic models often:

Use the following to answer questions: Figure: Tom's Production Possibilities -(Figure: Tom's Production Possibilities) Look at the figure Tom's Production Possibilities. The opportunity cost for Tom to move from point B on the curve to point A is: