Exam 2: Model Building and Gains From Trade

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

Economic growth can be depicted on a production possibilities frontier (PPF)as an

Refer to the following figure to answer the following questions. -What is the most preferred consumption point for a carbohydrate-loving society?

Consider the following scenario to answer the following questions: Two friends, Monica and Chandler, enjoy baking bread and making apple pies. Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie. -What is Monica's opportunity cost of baking 1 pie?

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

Refer to the following figure to answer the following questions. -In the figure,point A is

Even though person A has an absolute advantage over person B both at producing good X and at producing good Y,it can still make sense for persons A and B to engage in trade involving goods X and Y.Explain why this is so.

Which of the following is a positive statement?

Why doesn't our society invest more resources into the production of capital goods to enhance the level of growth in our future production possibilities frontier (PPF)?

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 Kenzi's opportunity cost of making 1 stromboli?

When an economy shifts away from production of consumer goods and toward production of capital goods,for the average worker this trade-off means

Consider the following scenario to answer the following questions: Kukla makes tables, with an opportunity cost of 3 rugs per every 4 tables. Zola makes rugs, with an opportunity cost of 2 tables per every 3 rugs. -Ollie proposes that Kukla give Zola 2 tables in exchange for 1 rug.What are Kukla's and Zola's reactions?

Variables that are NOT accounted for in a model are called

The area inside (within)the production possibilities frontier (PPF)contains ________ points.

The important act of holding all other variables constant while examining a particular variable is known as

Refer to the following figure for the following questions. -The opportunity cost of increasing production of blueberry pies from 7 to 11 pies is ________ pies.

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. -Based on the figure,which statement about comparative advantage is true?

Refer to the accompanying figure to answer the following questions. -The inefficient point(s)is/are

Refer to the following figure to answer the following questions. -In the figure,point E is

Physicists can conduct experiments to study subatomic particles,even though no one has ever seen or photographed a subatomic particle.Experimental psychologists can study emotions,even though no one has ever seen or photographed an emotion.How can there be experiments in these areas of study? What are the implications for the science of economics?