Exam 2: Model Building and Gains From Trade

Consider the production possibilities frontier PPF) shown in the figure below to answer the next questions. -Given current resources and technology, the unattainable range is best described as

Which of the following is necessary to build a good economic model?

The process of using current resources to create or buy new capital is called

Ceteris paribus means

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

An economist's use of experiments and real-world data to test a theory is an example of

The _______ area inside( within) the production possibilities frontier (PPF) contains points.

When it comes to making ceramic plates and cups, Reza has a comparative advantage over Greta. When it comes to making knives, forks, and spoons, Greta has a comparative advantage over Reza. If Reza and Greta plan to engage in trade for mutual gain, does the concept of opportunity cost enable them to determine exactly what trading ratio of place settings to silverware sets they should use? Why or why not?

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. -Based on the figure, which statement about comparative advantage is true?

Refer to the following figure to answer the next questions. -Which statement best describes the opportunity cost evident in the production possibilities frontier PPF) for the accompanying figure?

If Kingsley can sell paper at a lower opportunity cost than Todrick, then_______ has a(n)_______ advantage in paper sales.

Variables that are NOT accounted for in a model are called

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

Refer to the following figure to answer the next questions. -Which point in the corresponding figure represents a combination of smoothies and milk shakes that society CANNOT currently produce?

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 loaf of bread?

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. -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).

The process of using current resources to create new capital is

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. -Which statement best describes the absolute advantage as shown in the graphs?

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 of making a wooden boat?