Exam 3: The Economic Problem

-Suppose India and France have the same PPF,shown in the figure above.Based on their current production points,India's most likely future PPF is ________ and France's most likely future PPF is ________.

Given the information in the figure above,Joe can benefit from trade as far as the price at which he buys Liz's smoothies is

The United States can use all its resources to produce 250 DVDs or 500 shoes.China can use all of its resources to produce 30 DVDs or 300 shoes.The opportunity cost of producing a DVD in the United States is

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point C to point B,what is the opportunity cost of a DVD?

On a production possibilities frontier,500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier,300 pounds of apples and 1,300 pounds of bananas can be produced.Between these points,what is the opportunity cost of producing a pound of bananas?

With no international trade,a country ________ consume at a point outside of its PPF; with international trade,a country ________ consume at a point outside of its PPF.

-The figure above shows the production possibilities frontier for a country.How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

Using the figure above,if Jack and Jill specialize and gain from trade,then

"When a person is more productive in producing a good or service than another person,the first person has the comparative advantage in producing the good." Is this assertion correct or incorrect? Explain your answer.

The opportunity cost of economic growth is ________ and the benefit of economic growth is ________.

Robinson Crusoe divides his time between catching fish and gathering fruit.Part of his production possibilities frontier is given in the above table.Mr.Crusoe,while lonesome,is efficient and always stays on his PPF.Mr.Crusoe is consuming 20 pounds of fish.Then he decides to slowly become a vegetarian and decrease his consumption of fish to 9 pounds.This decision means that Mr.Crusoe will

Draw a production possibilities frontier between beans and peas.Label the unattainable points,the attainable points with fully employed resources,and the attainable points with unemployed resources.

When a country's production possibilities frontier shifts outward over time,the country is experiencing

A movement from one point on a production possibilities frontier to another represents

Why is the production possibilities frontier bowed out?

-The table above presents the production possibilities frontier for a nation.Using the information in the table,when moving from possibility C to D,the cost of 1 unit of a capital good in terms of the consumption goods forgone is ________ consumption goods per capital good.

Moving along the production possibilities frontier itself illustrates

"Because the United States is the largest economy in the world and can produce anything it needs domestically,there are no gains from trade for the United States." Is the previous statement correct or incorrect?

-Suppose that Germany,France,Estonia,and India all have the same production possibilities,illustrated in the figure above.Based on the production points in the figure,Germany is most likely to expand its PPF to

Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis.As the country moves along the frontier closer to the horizontal axis,