Exam 2: The Economic Problem

If individuals A and B can both produce only goods X and Y, and A does not have a comparative advantage in the production of either X or Y, then we know

Use the figure below to answer the following questions. Figure 2.1.3 -Refer to the production possibilities frontier in Figure 2.1.3.The opportunity cost of moving from C to B will be

Markets I. enable buyers and sellers to get information. II. are defined by economists as geographical locations where trade occurs. III. have evolved because they facilitate trade. Which of the above statements are correct?

If opportunity costs are increasing, then the production possibilities frontier

A medical clinic has 10 workers.Each worker can produce a maximum of either 2 units of medical services or 5 units of secretarial services a day.One day, the firm decides it would like to produce 10 units of medical services and 30 units of secretarial services.This output level is

The principal reason that production possibilities have grown more rapidly in Hong Kong than in Canada over the last 50 years is because

Any two individuals will gain from exchange

Marginal benefit from a good or service is the benefit received from consuming ________.It is measured by the most that people are willing to pay for ________.

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. -Given Fact 2.4.1, Andy and Rolfe

In an economy lacking property rights, it would be ________ to realize the gains from trade, and there would be ________ specialization compared to an economy with property rights.

The quantity of shoes produced is measured along the x-axis of a bowed-outward production possibilities frontier and the quantity of shirts produced is measured along the y-axis.As you move down towards the right along the production possibilities frontier, the marginal cost of

Use the figure below to answer the following questions. Figure 2.1.6 -Figure 2.1.6 shows the production possibilities frontier for a firm that produces pet food.Point A is ________ and point B is ________.

Use the figure below to answer the following questions. 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. -Refer to Table 2.4.1.For Vulcan, the opportunity cost of producing an additional unit of Y is

Use the figure below to answer the following questions. Figure 2.1.2 -Refer to the production possibilities frontier in Figure 2.1.2.If 6 units of X are currently being produced, then

Debra has an absolute advantage in producing a good when she

The kitchen manager at an Italian restaurant is deciding what assignments he should give to his two cooks, John and David.John can make 25 pizzas or 40 servings of pasta per hour and David can make 20 pizzas or 30 servings of pasta per hour.Which is the manager's best choice?

Which one of the following concepts is illustrated by a production possibilities frontier?

When the market achieves allocative efficiency,

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

Use the table below to answer the following questions. Table 2.1.1 The following table gives points on the production possibilities frontier for goods X and Y. -Refer to Table 2.1.1. What does point C mean?