Question 1

-The table above gives the production possibilities frontier for a nation that produces wheat and soybeans. Use the information in that table to complete the table below, which has in it the opportunity costs of moving from one production point to another. Do not forget to note the units of the opportunity costs.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The table above gives the opp...

Question 2

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has ________ advantage in producing ________.

Accepted Answer

A)   an absolute; shoes
B)   a comparative; shoes
C)   an absolute; bookshelves
D)   a comparative; bookshelvesE) A) and D)
F) C) and D)

Question 3

-In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?

Accepted Answer

A)   4 million pounds of bananas and 4 million hats
B)   2 million pounds of bananas and 5 million hats
C)   0 pounds of bananas and 6 million hats
D)   1 million pounds of bananas and 3 million hatsE) A) and D)
F) A) and B)

Question 4

-In the figure above, suppose that Mac and Izzie specialize and trade to reach point c. Mac sends Izzie

Accepted Answer

A)   12 computers in exchange for 12 TVs.
B)   12 computers in exchange for 6 TVs.
C)   6 computers in exchange for 12 TVs.
D)   6 computers in exchange for 6 TVs.E) None of the above
F) A) and D)

Question 5

Explain why the production possibilities frontier bows outward.

Accepted Answer

The bowed outward PPF reflects increasin...

Question 6

When the production possibilities frontier bows outward from the origin

Accepted Answer

A)   some of society's resources are unemployed.
B)   opportunity costs are constant.
C)   opportunity costs are increasing.
D)   opportunity costs are decreasing.E) A) and C)
F) A) and B)

Question 7

In the movie Cast Away, Tom Hanks plays a FedEx efficiency expert stranded on a deserted island. While on the island, he divides his time between catching fish, gathering coconuts, painting, and building a raft. Suppose that these were Mr. Hanks' only activities. Did he face an opportunity cost from pursuing any of these activities? Why or why not?

Accepted Answer

Yes, Mr. Hanks faces an opportunity cost...

Question 8

Ted can study for his economics exam or go to a concert. He decides to study for his economics exam instead of going to the concert. The concert he will miss is Ted's ________ of studying for the exam.

Accepted Answer

A)   opportunity cost
B)   explicit cost
C)   implicit cost
D)   discretionary costE) All of the above
F) None of the above

Question 9

When a nation has a comparative advantage in the production of a particular good

Accepted Answer

A)   the nation tends to avoid specialization.
B)   the comparative advantage encourages self-sufficiency.
C)   the opportunity cost of producing that good is higher than that of other goods.
D)   the nation can gain from trade.E) All of the above
F) A) and C)

Question 10

Moving from one point on the production possibilities frontier to another ________.

Accepted Answer

A)   involves a tradeoff but does not incur an opportunity cost
B)   involves an opportunity cost but no tradeoff
C)   involves a tradeoff and incurs an opportunity cost
D)   involves no tradeoff but it does incur an opportunity costE) B) and D)
F) A) and D)

Question 11

As an economy's capital stock increases, the economy

Accepted Answer

A)   generally experiences increased unemployment of other resources, such as labor.
B)   generally decides to engage in international trade.
C)   experiences economic growth.
D)   gains an absolute advantage in the production of capital goods.E) None of the above
F) All of the above

Question 12

Scarcity is represented on a production possibilities frontier figure by

Accepted Answer

A)   the amount of the good on the horizontal axis forgone.
B)   the fact that there are only two goods in the diagram.
C)   technological progress.
D)   the fact there are attainable and unattainable points.E) None of the above
F) A) and C)

Question 13

President Obama has proposed a goal that everyone complete at least one year of formal education or training beyond high school. This policy would

Accepted Answer

A)   increase human capital and increase economic growth.
B)   increase physical capital and increase economic growth.
C)   increase financial capital and increase economic growth.
D)   eliminate opportunity costs and increase economic growth.E) A) and B)
F) A) and C)

Question 14

Production possibilities
 
-In the above table, the opportunity cost of the 2nd pizza is

Accepted Answer

A)   0 cases of soda per pizza.
B)   15 cases of soda per pizza.
C)   95 cases of soda per pizza.
D)   80 cases of soda per pizza.E) A) and C)
F) All of the above

Question 15

By specialization and trade, two individuals can

Accepted Answer

A)   consume at a point beyond their individual production possibilities frontiers.
B)   increase their comparative advantage.
C)   increase their absolute advantage.
D)   shift their individual production possibilities frontiers outward.E) C) and D)
F) All of the above

Question 16

In general, the more resources that are devoted to technological research, the

Accepted Answer

A)   greater is current consumption.
B)   higher is the unemployment rate.
C)   faster the PPF shifts outward.
D)   more the PPF will bow outward.E) None of the above
F) C) and D)

Question 17

If marginal benefit is greater than marginal cost for the production of cars, to reach the allocative efficient quantity of cars, the production of cars must be increased.

Accepted Answer

A) True 
 B)False

Question 18

-Refer to the production possibilities frontier in the figure above. Which production point indicates that resources are NOT fully utilized or are misallocated?

Accepted Answer

A)   point a
B)   point b
C)   point c
D)   point eE) All of the above
F) None of the above

Question 19

-Using the values for the marginal benefit and the marginal cost of a bushel of apples given in the table above, what is the allocatively efficient quantity of apples? Suppose 10 million bushels of apples are produced. Should the quantity be increased or decreased? What if 20 million bushels are produced; should the quantity be increased or decreased?

Accepted Answer

The allocatively efficient quantity of a...

Question 20

Why is it likely that the United States has an absolute advantage in goods and yet it still ends up importing them from other countries?

Accepted Answer

The United States might have an absolute...

Exam 2: The Economic Problem

When a nation has a comparative advantage in the production of a particular good

Correct Answer
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Correct Answer
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The allocatively efficient quantity of a...
View Answer

In general, the more resources that are devoted to technological research, the

Correct Answer
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Scarcity is represented on a production possibilities frontier figure by

Correct Answer
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By specialization and trade, two individuals can

Correct Answer
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-In the figure above, suppose that Mac and Izzie specialize and trade to reach point c. Mac sends Izzie

Correct Answer
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Ted can study for his economics exam or go to a concert. He decides to study for his economics exam instead of going to the concert. The concert he will miss is Ted's ________ of studying for the exam.

Correct Answer
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Correct Answer
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Yes, Mr. Hanks faces an opportunity cost...
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In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has advantage in producing .

Correct Answer
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Moving from one point on the production possibilities frontier to another ________.

Correct Answer
verified

As an economy's capital stock increases, the economy

Correct Answer
verified

When the production possibilities frontier bows outward from the origin

Correct Answer
verified

-In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?

Correct Answer
verified

Why is it likely that the United States has an absolute advantage in goods and yet it still ends up importing them from other countries?

Correct Answer
verified
The United States might have an absolute...
View Answer

If marginal benefit is greater than marginal cost for the production of cars, to reach the allocative efficient quantity of cars, the production of cars must be increased.

Correct Answer
verified

President Obama has proposed a goal that everyone complete at least one year of formal education or training beyond high school. This policy would

Correct Answer
verified

-Refer to the production possibilities frontier in the figure above. Which production point indicates that resources are NOT fully utilized or are misallocated?

Correct Answer
verified

Correct Answer
verified
The table above gives the opp...
View Answer

Explain why the production possibilities frontier bows outward.

Correct Answer
verified
The bowed outward PPF reflects increasin...
View Answer

Production possibilities -In the above table, the opportunity cost of the 2nd pizza is

Correct Answer
verified

Exam 2: The Economic Problem

When a nation has a comparative advantage in the production of a particular good

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe allocatively efficient quantity of a...View AnswerShow Answer

In general, the more resources that are devoted to technological research, the

Correct AnswerverifiedShow Answer

Scarcity is represented on a production possibilities frontier figure by

Correct AnswerverifiedShow Answer

By specialization and trade, two individuals can

Correct AnswerverifiedShow Answer

-In the figure above, suppose that Mac and Izzie specialize and trade to reach point c. Mac sends Izzie

Correct AnswerverifiedShow Answer

Ted can study for his economics exam or go to a concert. He decides to study for his economics exam instead of going to the concert. The concert he will miss is Ted's ________ of studying for the exam.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedYes, Mr. Hanks faces an opportunity cost...View AnswerShow Answer

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has ________ advantage in producing ________.

Correct AnswerverifiedShow Answer

Moving from one point on the production possibilities frontier to another ________.

Correct AnswerverifiedShow Answer

As an economy's capital stock increases, the economy

Correct AnswerverifiedShow Answer

When the production possibilities frontier bows outward from the origin

Correct AnswerverifiedShow Answer

-In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?

Correct AnswerverifiedShow Answer

Why is it likely that the United States has an absolute advantage in goods and yet it still ends up importing them from other countries?

Correct AnswerverifiedThe United States might have an absolute...View AnswerShow Answer

If marginal benefit is greater than marginal cost for the production of cars, to reach the allocative efficient quantity of cars, the production of cars must be increased.

Correct AnswerverifiedShow Answer

President Obama has proposed a goal that everyone complete at least one year of formal education or training beyond high school. This policy would

Correct AnswerverifiedShow Answer

-Refer to the production possibilities frontier in the figure above. Which production point indicates that resources are NOT fully utilized or are misallocated?

Correct AnswerverifiedShow Answer

Correct Answerverified The table above gives the opp...View AnswerShow Answer

Explain why the production possibilities frontier bows outward.

Correct AnswerverifiedThe bowed outward PPF reflects increasin...View AnswerShow Answer

Production possibilities -In the above table, the opportunity cost of the 2nd pizza is

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
The allocatively efficient quantity of a...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Yes, Mr. Hanks faces an opportunity cost...
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In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has advantage in producing .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
The United States might have an absolute...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The table above gives the opp...
View Answer

Correct Answer
verified
The bowed outward PPF reflects increasin...
View Answer

Correct Answer
verified