Exam 2: Model Building and Gains From Trade

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 Bo's opportunity cost of making 1 stromboli?

For a phenomenon to be investigated by means of experiments, the phenomenon must

The usual purpose of an experiment is to

The_______ illustrates the various combinations of output that a society can produce if all of its resources are being used efficiently.

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

Why do economists use models?

When one producer can create more of a good than another producer using the same quantity of resources, the first producer has

For both parties to benefit from specialization and trade, the trading parties must agree on

Which of the following is a normative statement?

Consider the following scenario to answer the next questions: On a particular Saturday, Mark Zuckerberg and Bill Gates can either plant trees or spread mulch in their gardens. Their maximum output per day is listed in the following table, along with spaces where you can calculate the opportunity cost. Amount of Opportunity Cost of Trees Opportunity Mulch Spread Spreading 1 Cubic Planted Cost of ITree (in cubic yards) Yard of Mulch Zuckerberg 20 30 Gates 15 30 -At what terms of trade relative price ratio) could they specialize and trade with one another so that both have more trees planted and mulch spread than they could accomplish on their own?

Refer to the following figure for the next questions. -As we move from points N to M to L, the opportunity cost of additional apple pie

$\text {Refer to the following table to onswer the next five questions.}$ New York Pizzas Philly Cheesesteaks Jay-Z 40 120 Solange 50 125 -Given an eight-hour workday, which statement best describes the absolute advantage evident in the table?

Suppose Hoda is a brilliant attorney who can draft especially persuasive legal briefs. She also happens to possess some excellent administrative skills such as typing, filing, assembling binders and notes, and making reservations. Which best describes whether Hoda should hire an administrative assistant to help her?

Variables that are controlled for in a model are called

Greater investment in capital goods today leads to

Refer to the following figure to answer the next questions. -Which point in the corresponding figure shows that productive resources are NOT fully employed?

$\text {Refer to the following table to onswer the next five questions.}$ New York Pizzas Philly Cheesesteaks Jay-Z 40 120 Solange 50 125 -Suppose that Solange and Jay-Z could each make either New York-style pizza or Philly cheesesteaks. Given an eight-hour workday, which of the following would permit them to consume outside their respective production possibilities frontiers PPFs)?

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 a new production possibility?

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 Stefan's opportunity cost of a painting?

A model without any simplifying assumptions