Exam 1: The Economic Problem

Below are some production possibilities data for the mystical land of Ghandor. A B C D Arrows 0 1 2 3 4 Viners 20 18 14 8 0 -Refer to the information above to answer this question. Suppose that Ghandor is currently producing combination

All of the following except one are included in the four Cs used, throughout history, by humankind to coordinate its economies. Which is the exception?

The following table shows the production possibilities for producing rice and beans in the country of Aipotu: \% Inputs Output of rice \% inputs Output of beans 0 0 0 0 20 100 20 60 40 180 40 100 60 240 60 130 80 280 80 150 100 300 100 160 -Refer to the table above to answer this question. If Aipotu produces 240 rice, how many beans can it produce?

Tigris produces only two products: tennis balls and tennis racquets. Each worker comes with a fixed quantity of materials and capital, and the economy's labour force is fixed at 100 workers. The following table indicates the amounts of balls and racquets that can be produced daily with various quantities of labour: $\text { Number of Workers Daily Production of }$$\quad$ $\text { Number of Workers Daily Production of }$ Tennis Balls Racquets 0 0 0 0 20 80 20 30 40 150 40 50 60 200 60 65 80 230 80 75 100 250 100 80 a) Can Tigris produce 200 balls and 60 racquets? b) What is the total cost of producing 150 balls? c) What is the total cost of producing 75 racquets? d) If Tigris is currently producing 230 balls, what is the cost of an additional 20 balls? e) If Tigris is currently producing 30 racquets, what is the cost of an additional 20 racquets?

What do economists always do when they are constructing theories or models?

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question. What might point U indicate?

The cost of getting a degree (tuition and textbooks) from a private school is $20,000 a year. Evaluate this statement.

Discuss the pros and cons of taking from the rich and giving to the poor.

The following graph shows the production possibilities for the economy of Esher: a) What is the total cost of producing 7 pops? b) What is the total cost of producing 4 corns? c) What is the cost of moving from point b to point c? Suppose that Esher experiences a 50% increase in the productivity of producing Pops. d) Draw in the new production possibilities curve labelled PP2. e) If Esher wants to have 6 pops, how many corn can it now have?

Below are some production possibilities data for the mystical land of Lhanor. A B C D E Kaldors 0 4 8 12 16 Bouldings 60 54 42 24 0 -Refer to the information above to answer this question. Suppose that Lhanor is currently producing combination

Why is economics relevant?

Given the following production possibility curve. A B C D E Good X 20 18 15 9 0 Good Y 0 5 8 11 12 a) What is the per unit opportunity cost from point A to point B? b) What is the per unit opportunity cost from point B to point C? c) What is the per unit opportunity cost from point C to point D? d) What is the per unit opportunity cost from point D to point E?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question. What is the opportunity cost of 1 unit of rye?

Which of the following terms describes the next best alternative that must be sacrificed as a result of making a particular choice?

All of the following, except one, are capital goods. Which is the exception?

Which form of efficiency stresses the production of the 'right type' of products?

What is the difference between productive and allocative efficiency?

Which type of economy would involve a central governing body making all of the fundamental economic decisions?

All of the following statements, except one, are positive statements. Which is the exception?

Which of the following statements is correct for a society that emphasizes the production of capital goods over that of consumer goods?