Exam 2: Model Building and Gains From Trade

The table below shows the maximum number of burgers or hot dogs that Frances and Takeru can cook in one hour. a.Fill in the rest of the table with the opportunity cost of burgers and hot dogs for each person.Be sure to include the units. b.Identify who has a comparative advantage in producing each good.

A poker player wins some cash.Which use of the money would most naturally be considered an investment?

On a production possibilities frontier (PPF)that shows the trade-off between consumer goods and capital goods given a fixed amount of labor,unemployment is illustrated by

The usual purpose of an experiment is to

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the following questions. -What is Bo's opportunity cost of making 1 stromboli?

The process of using current resources to create or buy new capital is called

Which scenario represents economic contraction?

The scientific method and the tools of economics are useful in examining

A society that is producing its maximum combination of goods and using all available resources for production

Refer to the accompanying figure to answer the following questions. -Unemployed resources are evident at

The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called

Which of the following is a normative statement?

Which of the following is a positive statement?

When it comes to making ceramic plates and cups,Reza has a comparative advantage over Greta.When it comes to making knives,forks,and spoons,Greta has a comparative advantage over Reza.If Reza and Greta plan to engage in trade for mutual gain,does the concept of opportunity cost enable them to determine exactly what trading ratio of place settings to silverware sets they should use? Why or why not?

The ________ illustrates the various combinations of output that a society can produce if all of its resources are being used efficiently.

Refer to the following figure for the following questions. -The opportunity cost of increasing the production of apple pies from 12 to 14 pies is ________ pies.

Refer to the following table to answer the following questions. -Given an eight-hour workday,which statement best describes the absolute advantage evident in the table?

Which of the following is a normative statement?

Goods that are produced today in order to make other valuable goods and services in the future are called ________ goods.

An increase in general resources that affects the production of both goods on a production possibilities frontier (PPF)would cause an