Exam 2: The Economic Problem

A movement along the production possibilities frontier will result from

Figure 2.1.4 Use the figure below to answer the following question. -Refer to the production possibilities frontier in Figure 2.1.4. Which point is unattainable?

Table 2.4.1 The planets of Vulcan and Romulus each produce goods X and Y. The following table gives points on their production possibilities frontiers. Use the figure below to answer the following questions. -Refer to Table 2.4.1. For Vulcan, the opportunity cost of producing an additional unit of Y is

In Portugal, the opportunity cost of a bale of wool is 3 bottles of wine. In England, the opportunity cost of 1 bottle of wine is 3 bales of wool. Given this information,

Use the information below to answer the following questions. Fact 2.4.2 Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. -Given Fact 2.4.2, what would be the total output of X and Y in an eight-hour day if Agnes and Brenda each specialized in producing the good in which they have a comparative advantage?

If Sam is producing at a point on his production possibilities frontier, then he

The depletion of fish stocks in Eastern Canada, with its accompanying unemployment, will lead to a

The production possibilities frontier shows

Table 2.1.4 Consider the following production possibilities for a student for the typical week: Use the table below to answer the following question. -Refer to Table 2.1.4. Complete the following sentence. The production possibilities frontier in the table shows

Which of the following quotations best illustrates a tradeoff?

Individuals A and B can both produce good X. We say that A has a comparative advantage in the production of good X if

If Sam is producing at a point inside his production possibilities frontier, then he

Microsoft's marginal cost of the 100th copy of Microsoft Windows 8 is

Suppose the production possibilities frontier for skirts and pants is a straight line. As the production of skirts increases, the marginal benefit from skirts

The growth of capital resources, including human capital is

There are two goods, X and Y. If the opportunity cost of producing good X is lower for Pam than for Gino, then

Use the information below to answer the following questions. Fact 2.4.1 In an eight-hour day, Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight-hour day, Rolfe can produce either 8 loaves of bread or 8 kilograms of butter. -From Fact 2.4.1, we know that

Figure 2.1.1 Use the figure below to answer the following questions. -Refer to the production possibilities frontier in Figure 2.1.1. Which one of the following is true about point C?

Suppose a hurricane causes extensive devastation, destroying houses, roads, schools and factories. What would be the effect of this hurricane on a production possibilities frontier consisting of consumption goods and capital goods?

Use the information below to answer the following questions. Fact 2.4.1 In one hour, Sue can produce 50 caps or 10 jackets, and Tessa can produce 70 caps or 7 jackets. -Refer to Fact 2.4.1. ________ has a comparative advantage in producing caps. If Sue and Tessa each specialize in producing the good in which they have a comparative advantage and trade 1 jacket for 7 caps, ________.