Exam 2: Model Building and Gains From Trade

Use these production possibilities frontier (PPF)curves,which compare the ancient production of agricultural products to art and literature,to answer the questions that follow. -Suppose a great plague wipes out half of the society's population.Which of the following graphs best depicts how this would affect the PPF?

Which of the following is a positive statement?

Refer to the following table to answer the questions that follow. -Given the same quantity of resources,what is Alicia Keys's opportunity cost of producing a New York pizza?

When one producer has a comparative advantage in production,she:

Which of the following would NOT lead to an outward shift of a future production possibilities frontier (PPF)?

Variables that are controlled for in a model are called:

Refer to the accompanying figure to answer the questions that follow. -How is opportunity cost illustrated?

Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)?

Michael and Angelo are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Use this table to answer the questions that follow. -What is Angelo's opportunity cost of a painting?

You have a comparative advantage in producing a good whenever:

Use these production possibilities frontier (PPF)curves,which compare the ancient production of agricultural products to art and literature,to answer the questions that follow. -Suppose a new generation of baby boomers is entering the workforce.Which graph best depicts how this would affect the PPF?

An increase in the labor force would be reflected in a society's production possibilities frontier (PPF)by an:

The figures below depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between building wooden boats and solving crimes.Refer to these figures to answer the questions that follow. -What is Gibbs's opportunity cost of making a wooden boat?

When testing a model rocket on your campus quad,which of the following would be an endogenous factor?

Which of the following is a normative statement?

Greater investment in capital goods today leads to:

Suppose that Dwight and Jim can either make salads or grill steaks.Their maximum output per hour is listed in the following table.Given the same quantity of resources,at what terms of trade (relative price ratio)could they specialize and trade so that both consume outside their own production possibilities frontier (PPF)?

Consider the production possibilities frontier (PPF)shown in the figure below to answer the questions that follow. -Given current resources and technology,the unattainable range is best described as:

Suppose that,on a particular Saturday,Mark Zuckerberg and Bill Gates can either plant trees or spread mulch in their gardens.Their maximum output per day is listed in the following table,along with spaces where you can calculate the opportunity cost.Who has an absolute advantage in spreading mulch?

Michael and Angelo are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Use this table to answer the questions that follow. -What is Michael's opportunity cost of a sculpture?