Exam 3: The Economic Problem

In the production possibilities frontier model,an unattainable point lies

When drawing a production possibilities frontier,which of the following is held constant?

How can a combination of goods be unattainable?

-Deb and Pete have volunteered to help their favorite charity mail out fundraiser information.The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes.If Deb spends all her time assembling packets,how many can she assemble?

When a person has a comparative advantage in producing a good or service,the person has

A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents

Moving along a country's PPF,a reason opportunity costs increase is that

The production possibilities frontier is a graph showing the

For country North,the opportunity cost incurred when 3 tractors are produced is 21 watches.For country South,the opportunity cost incurred when 5 tractors are produced is 100 watches.Which country has the comparative advantage in the production of tractors?

A point on the production possibilities frontier reflects an

Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Cindy's opportunity cost of producing 1 taco is

-The figure above shows the production possibilities frontier for a country.A combination of 4 million gallons of milk and 4 million gallons of ice cream is

Which of the following statements is correct?

-The above figure shows the production possibility frontier for an economy.The point or points that are attainable are

As technology advances,

Consider a production possibility frontier with books and tables.A combination of 1000 books and 500 tables is on the frontier.Which of the following are true? I.Production of 700 books and 400 tables is attainable but inefficient. Ii.Production of 1000 books and 600 tables is unattainable. Iii.Production of 500 books and 1000 tables is inside the frontier.

Before the first Gulf War,Kuwait had the capacity to produce a certain amount of oil from its oil wells.After the war,it found that capacity greatly diminished because the oil wells were on fire.Draw Kuwait's PPF before and after the war,assuming that the only two goods produced are oil and food.Further assume that setting the oil wells on fire did not affect Kuwait's ability to produce food.Explain why the PPF before the war is different from the PPF after the war.

A reason the production possibilities frontier exists is

While moving along a production possibilities frontier,the amount of labor ________,the amount of capital ________,and the level of technology ________.

-In the above table,for Mary the opportunity cost of producing a dress is ________,and the opportunity cost for Mark of producing a dress is ________.