Exam 2: Model Building and Gains From Trade

Consider the following scenario to answer the next 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?

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 next questions -What is Mikhail's opportunity cost of a sculpture?

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 next questions. -What is DiNozzo's opportunity cost for solving a crime?

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

$\text {Refer to the following table to onswer the next five questions.}$ New York Pizzas Philly Cheesesteaks Jay-Z 40 120 Solange 50 125 -Given the same quantity of resources, what is Jay-Z's opportunity cost of producing a New York pizza?

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

The ability of one producer to produce a good at a lower opportunity cost than another producer is called

Economic growth is represented on a production possibilities frontier PPF) by 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 next questions. -What is Kenzi's opportunity cost of making 1 stromboli?

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 next questions. -Which point represents an efficient level of output both before and after the shift?

Opportunity cost is evident on the production possibilities frontier PPF) graph

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

At full employment, a society produces

Which scenario represents economic contraction?

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

Which of the following is NOT an assumption that economists make when developing a production possibilities frontier PPF)?

Which of the following is a positive statement?

Which of the following would NOT lead to an outward shift of a future production possibilities frontier PPF)?

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

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