Exam 3: The Economic Problem

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

When a production possibilities frontier is bowed outward,as more of one good is produced,its opportunity cost

-Point D in the above PPF figure is

The sustained expansion of production possibilities is called

The above figure shows the PPF for a country that produces computers and computer factories.The nation's production possibilities frontier is PPF0.At which of the following production points would the economy grow most rapidly?

What does the vertical intercept of a production possibilities frontier represent?

-The figure above illustrates a small country's production possibilities frontier.Moving from point C to point B,the per unit opportunity cost of computers is ________ per computer.

The bowed out (concave)shape of the production possibilities curve implies that as production of one good

A bowed out PPF reflects which of the following ideas? I.Increasing opportunity cost Ii.Resources are not equally productive in all activities. Iii.Prices of goods increase over time.

-The table above presents the production possibilities of Farmer Brown.Use these data to calculate Farmer Brown's opportunity cost of additional beef as Farmer Brown moves from point A to B to C to D.Also use the data to calculate Farmer Brown's opportunity cost of additional wheat as Farmer Brown moves from point D to C to B to A.Based on these costs,does Farmer Brown use resources that are more productive in one activity than the other or are they equally productive in both uses? Explain your answer.

The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies. -Given the information in the figure above,Liz has a comparative advantage in ________ and an absolute advantage in ________.

Which of the following is an assumption used when drawing a production possibilities frontier? I.Human wants and desires are limited to what is available. Ii.Only two goods are considered. Iii.The level of technology is fixed and unchanging.

Moving between two points on a PPF,a country gains 8 desktop computers and forgoes 4 laptop computers.The opportunity cost of 1 desktop computer is

When production efficiency does NOT occur, I.an economy is producing at a point within its PPF. Ii.there are unemployed resources. Iii.allocative efficiency cannot occur.

-The figure above shows the production possibilities frontier for a country.In order for it to produce at point E,the

-The figure above represents the production possibilities frontier for a country. a.The nation is currently producing at point B and wants to move to point C.What is the opportunity cost of the move? b.The nation is currently producing at point B and wants to move to point A.What is the opportunity cost of the move? c.The nation is currently producing at point D and wants to move to point B.What is the opportunity cost of the move?

If a country has

Moving along the production possibilities frontier itself illustrates

Using the figure above,suppose with no trade Liz and Joe each produce at point A on their respective PPFs.Then,Joe suggests that they specialize and trade.He would produces only salads and Liz would produce only smoothies.Then,Joe says,he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie.Liz should

-The above figure shows the production possibility frontier for an economy.The point or points that are not attainable are