Exam 3: The Economic Problem

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

The United States is one of the richest nations in the world,

-Jean can either type her term paper or create Web pages during the limited time she has available.The table above shows her PPF. a.Can Jean type 90 pages and create 2 Web pages? b.Use the above numbers to calculate the opportunity cost of a typed page as she increases her time typing and decreases time creating a Web page.

-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 ________.

-The figure above shows Prakash's and Gail's production possibilities frontiers for writing books and magazine articles. a.What is Prakash's opportunity cost of a book? What is Gail's opportunity cost? Who has the comparative advantage in writing books? b.Who has the comparative advantage in writing magazine articles? c.According to their comparative advantages,who should write books and who should write magazine articles?

How is economic growth shown in a production possibilities frontier graph?

Which of the following correctly describes the relationship between productivity growth,unemployment,and the economy's production possibilities frontier?

-Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes.The figure above illustrates his production possibilities frontier.What is Gabriel's opportunity cost of raising another 100 cows?

-The figure above shows the production possibilities frontier for a country.A combination of 3 million gallons of milk and 3 million gallons of ice cream is

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

When economists state that the opportunity cost of a product increases as more of it is produced,what do they mean? For instance,what is the opportunity cost? And,where in a PPF diagram does this statement apply and where does it not apply?

When Mik has an absolute advantage in the production of two goods over Tommy,Mik

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

Why does a nation experience increasing opportunity cost?

-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,which country is most likely to expand its PPF to PPF??

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 shows the production possibilities for an economy.The opportunity cost of a loaf of bread is ________ when moving from possibility B to possibility C.

Consider the United States' production of soy beans and running shoes.If the United States has an absolute advantage in the production of both goods compared to China,

Which of the following statements is correct?