Exam 3: The Economic Problem

Which of the following statements is correct? I.As the economy grows,the opportunity costs of economic growth decrease. Ii.Economic growth has no opportunity cost. Iii.The opportunity cost of economic growth is current consumption forgone.

As an economy moves down along a straight line production possibilities frontier,what happens to the opportunity cost of producing the good on the horizontal axis?

-The table above presents the production possibilities frontier for a nation.Using the information in the table,when moving from possibility A to B to C to ultimately E,the cost of a unit of capital goods in terms of consumption goods

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty.What impact would this law have on the nation's production possibilities frontier?

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point D to point C,the opportunity cost of producing one more DVD ________,and when it moves from point C to D,the opportunity cost of producing one more cell phone ________.

To increase its economic growth,a nation should

-In the table above,Jill's opportunity cost for 1 pound of food is ________ and her opportunity cost for 1 pound of clothing is ________.

If Wendy can produce more of all goods than Tommy in an hour,then

Specialization and trade make a country better off because with trade,the country can consume at a point

-In the table above,Jack's opportunity cost for 1 pound of food is ________ and his opportunity cost for 1 pound of clothing is ________.

-The table above shows a nation's production possibilities frontier.If the nation wants to produce 4 robots and 34 pizzas,

A country produces only apples and bananas.Moving from point A to point B along its production possibilities frontier,5 apples are gained and 4 bananas are forgone.What is the opportunity cost of an apple?

-The table above shows a nation's production possibilities frontier.The opportunity cost of a robot between combination D and E is

A free lunch (the absence of a tradeoff)when the production of a good is increased is possible for the entire economy only if

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point D.What is the opportunity cost of increasing the production of rice to 15 tons?

-The above figure shows the production possibility frontier for a country.What is the opportunity cost per ton of rice to move from point D to E?

-In the table above,how many jackets must Mark forgo for every dress he makes?

A country produces only apples and bananas.Moving from point A to point B along its production possibilities frontier,5 apples are forgone and 4 bananas are gained.What is the opportunity cost of a banana?

If there is unemployment in an economy,then the

Moving from a point inside the production possibilities frontier to a point on the production possibilities frontier,the opportunity cost of producing more of the good on the horizontal axis