Exam 2: Model Building and Gains From Trade

As we move from one efficient point on the production possibilities frontier (PPF)to another efficient point on the PPF,we experience

Think of the production possibilities frontier (PPF)model.When society is producing the largest possible output from its resources,it is operating

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

Which faulty assumption by banks led to the Great Recession that began in 2007?

Mikhail and Stefan 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 following questions. -Based on the table,does Mikhail or Stefan have a comparative advantage?

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 Chandler's opportunity cost of baking 1 loaf of bread?

The figure depicts a shift in a society’s production possibilities frontier (PPF) for the manufacture of trains and planes: train-manufacturing capacity expands while plane-manufacturing capacity shrinks. Refer to this figure to answer the following questions. -Which point represents an efficient level of output both before and after the shift?

Economic growth is represented on a production possibilities frontier (PPF)by the PPF

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called

Explain why,ultimately,the opportunity cost of producing consumer goods instead of capital goods must be defined in terms of consumer goods.

At full employment,a society produces

The process of using current resources to create new capital is

Refer to the following figure for the following questions. -According to the figure,a new technology that makes it easier to peel,core,and prepare apples will cause

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 following questions. -What is Gibbs's opportunity cost of solving a crime?

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

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 2 rugs.What are Kukla's and Zola's reactions?

Which of the following is a positive statement?

What does it mean when society is operating inside the production possibilities frontier (PPF)?

For what kind of society does a shift away from the production of capital goods and toward the production of consumer goods make sense?

The opportunity cost of every investment in capital goods is