Exam 3: The Economic Problem

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

A major earthquake occurs in the central part of the United States.What impact would this have on the nation's production possibilities frontier and why?

-In the above figure,Jack's opportunity cost of producing 1 gallon of soda is ________ of bottled water.

-The figure above shows the production possibilities frontier for a country.A combination of 2 million gallons of milk and 2 million gallons of ice cream is

The production possibilities frontier illustrates which of the following economic ideas?

-The figure above shows the production possibilities frontier for a country.In order for it to move from producing at point A to producing at point B,the country would need to incur an opportunity cost of

Points inside the PPF are all

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.

Which of the following would most likely cause a country's production possibilities set to shift outward at every point along the frontier?

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

Moving from one point to another on a production possibilities frontier implies

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

The idea of increasing opportunity cost is reflected in the

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

-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.Which of the following statements is correct?

Why does the production possibilities frontier have a bowed out shape rather than being a straight line?

If the production possibilities frontier between two goods is a straight line,then the

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.

In the production possibilities model,the vertical axis measures ________ and the horizontal axis measures ________.

Robinson Crusoe divides his time between catching fish and gathering fruit.Part of his production possibilities frontier is given in the above table.If Mr.Crusoe is on his PPF and he increases the amount of fruit he gathers from 56 to 90 pounds,the opportunity cost is