Exam 2: Model Building and Gains From Trade

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 pie?

Forgoing current consumption so that those resources can be used to produce new capital is called

Refer to the following figure to answer the following questions. -This society could reach point F when there is a(n)

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. -If Bo and Kenzi were to specialize and trade,at what exchange rate would they find some quantity of trade to be mutually beneficial?

Draw a production possibilities frontier (PPF)for good A and good B.Suppose that these goods are subject to increasing relative costs in production,and be sure that your graph reflects this fact. Now suppose that a new and innovative technology enhances the production of good A but not good B.Illustrate how this new innovation changes the production possibilities frontier (PPF).

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

Which of the following is a normative statement?

Ceteris paribus means

Refer to the following figures to answer the following questions. -Which allocation point in the short-run production possibilities frontier (PPF)will lead to no growth in the long-run PPF?

Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the following questions. -Suppose the printing press is invented.Which graph best depicts how this would affect the PPF?

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 output that was efficient before the shift but is inefficient afterward?

Explain why,in the figure,a country might rather be at point B than at point A.

The movie Saving Private Ryan is about a military mission to find and recover a particular soldier-Private Ryan.The movie is predominantly about how much was given up in an effort to save this one particular soldier.The main economic theme of the movie is

Is it always better to forgo current consumption in order to invest more in capital goods that will provide more growth in society's production possibilities frontier (PPF)and make us better off in the future?

Suppose that Leslie and Hussein can either make salads or grill steaks.Their maximum outputs per hour are 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 frontiers (PPFs)?

Consider the production possibilities frontier (PPF) shown in the figure below to answer the following questions -The set of efficient points is best described as

Over the last 20 years,countries such as India and China have

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 loaf of bread?

Suppose that during Coco's afternoon shift working at the library,she could either reshelve books or process interlibrary loan (ILL)requests.Draw a production possibilities frontier (PPF)that describes Coco's production trade-offs.Her production of each of these goods is subject to increasing relative costs in production,so be sure that the graph reflects this fact. Now suppose that a new online request system increases Coco's efficiency at processing ILL requests but does not affect her reshelving ability.Show,on the same graph,how this new innovation changes the 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 Bo's opportunity cost of making 1 pizza?