Question 1

"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.

Accepted Answer

The assertion is incorrect.The statement...

Question 2

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.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The production possibilities frontier,w...

Question 3

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

Accepted Answer

A)   2 shoes.
B)   1/2 of a shoe.
C)   20 shoes.
D)   500 shoes.
E)   1 DVD.

Question 4

Moving along the production possibilities frontier itself illustrates

Accepted Answer

A)   the existence of tradeoffs.
B)   the existence of unemployment of some factors of production.
C)   the benefits of free lunches.
D)   how free lunches can be exploited through trade.
E)   how tradeoffs need not occur if the economy is efficient.

Question 5

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

Accepted Answer

A)   no opportunity cost.
B)   economic growth.
C)   higher unemployment of resources.
D)   a decrease in unemployment of resources.
E)   an end to opportunity cost.

Question 6

-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

Accepted Answer

A)   PPF3 or PPP2.
B)   PPF3.
C)   PPF1.
D)   PPP1. or PPF2.
E)   PPF2.

Question 7

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?

Accepted Answer

A)   2 pounds of bananas
B)   200 pounds of apples
C)   2 pounds of apples
D)   0.5 a pound of apples
E)   12/5 = 2.4 pounds of apples

Question 8

-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.

Accepted Answer

A)   25
B)   15
C)   20
D)   10
E)   an undefined amount of

Question 9

Why is the production possibilities frontier bowed out?

Accepted Answer

The production possibilities frontier is...

Question 10

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

Accepted Answer

A)   a tradeoff.
B)   a free lunch.
C)   full employment of labor but not capital.
D)   unemployment.
E)   an advance in technology.

Question 11

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,

Accepted Answer

A)   more jeans are produced.
B)   the country eventually chooses an unattainable point.
C)   free lunches occur.
D)   more tradeoffs occur.
E)   more shoes are produced.

Question 12

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

Accepted Answer

A)   Jack produces equal amounts of gallons of water and bottled water.
B)   Jack specializes in the production of bottled water.
C)   Jack and Jill produce beyond their PPF.
D)   Jack specializes in the production of soda.
E)   Jack specializes on the production of soda and water.

Question 13

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.

Accepted Answer

A)   cannot; can
B)   can; cannot
C)   can; can
D)   cannot; cannot
E)   None of the above answers is correct because the presence or absence of international trade has nothing to do with where a country consumes in comparison to its PPF.

Question 14

-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?

Accepted Answer

A)   0.5 cell phones
B)   2 cell phones
C)   0.5 million cell phones
D)   2 million cell phones
E)   zero

Question 15

-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?

Accepted Answer

A)   The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.
B)   The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.
C)   The opportunity cost of moving from point C to point B is less than the movement from point B to point A.
D)   The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.
E)   More information is needed to determine how the two opportunity costs compare.

Question 16

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

Accepted Answer

A)   below 5 salads per smoothie.
B)   not higher than 2 salads per smoothie.
C)   not lower than 2 salads per smoothie.
D)   not lower than 1 salad per smoothie.
E)   not higher than 4 salads per smoothie.

Question 17

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

Accepted Answer

A)   increased current consumption; increased future consumption
B)   increased current consumption; decreased future consumption
C)   decreased current consumption; increased future consumption
D)   decreased current consumption; decreased future consumption
E)   nothing; increased future consumption

Question 18

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

Accepted Answer

A)   incur an opportunity cost of 9 pounds of fruit.
B)   incur an opportunity cost of 20 pounds of fish.
C)   be able to enjoy a gain of 9 pounds of fruit.
D)   incur an opportunity cost of 99 pounds of fruit.
E)   incur an opportunity cost of 9 pounds of fish.

Question 19

-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 ________.

Accepted Answer

A)   PPF1; PPF1
B)   PPF2; PPF2
C)   PPF0; PPF0
D)   PPF2; PPF1
E)   PPF1; PPF2

Question 20

"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?

Accepted Answer

The statement is incorrect.The...

Exam 3: The Economic Problem

-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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

Why is the production possibilities frontier bowed out?

Correct Answer
verified
The production possibilities frontier is...
View Answer

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.

Correct Answer
verified
The production possibilities frontier,w...
View Answer

-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 .

Correct Answer
verified

-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.

Correct Answer
verified

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,

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

"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?

Correct Answer
verified
The statement is incorrect.The...
View Answer

-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?

Correct Answer
verified

"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.

Correct Answer
verified
The assertion is incorrect.The statement...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

-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

Correct Answer
verified

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.

Correct Answer
verified

Moving along the production possibilities frontier itself illustrates

Correct Answer
verified

Exam 3: The Economic Problem

-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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Why is the production possibilities frontier bowed out?

Correct AnswerverifiedThe production possibilities frontier is...View AnswerShow Answer

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.

Correct Answerverified The production possibilities frontier,w...View AnswerShow Answer

-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 ________.

Correct AnswerverifiedShow Answer

-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.

Correct AnswerverifiedShow Answer

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,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

"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?

Correct AnswerverifiedThe statement is incorrect.The...View AnswerShow Answer

-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?

Correct AnswerverifiedShow Answer

"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.

Correct AnswerverifiedThe assertion is incorrect.The statement...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

-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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Moving along the production possibilities frontier itself illustrates

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The production possibilities frontier is...
View Answer

Correct Answer
verified
The production possibilities frontier,w...
View Answer

-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 .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
The statement is incorrect.The...
View Answer

Correct Answer
verified

Correct Answer
verified
The assertion is incorrect.The statement...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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.

Correct Answer
verified

Correct Answer
verified