Exam 2: Choice, Opportunity Costs, and Specialization

Private property rights:

Refer to Figure 2.4.What would be the marginal opportunity cost of producing one unit of food in Korea assuming the economy is at point B?

Which of the following is an example of opportunity cost?

Given a production possibilities curve for defense goods and nondefense goods, which of the following is not true?

Economists refer to the ability of one person or nation to do something with a lower opportunity cost than another as _____.

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 trade were to occur, what would be the most Ohio would be willing to pay for 1 chili?

Which of the following is related to the concept of trade-off used in economics?

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.

Jane wins $100, 000 in the lottery and immediately uses her winnings to open up a donut shop.Her direct costs are $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 is:

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods. Table 2.2 Refer to Table 2.2.Identify the correct statement.

Gains from trade can be realized if each country specializes in its comparative advantage good.

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.

Given below is the production possibilities schedule for capital goods and consumer goods. Table 2.3 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:

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?

An economy's PPC illustrates the extent to which the economy consumes what it produces.

Nicky makes $25, 000 a year as a sales clerk.He then decides to quit his job to enter an 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:

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:

While constructing a production possibilities frontier [PPF], we assume:

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