Exam 2: Economic Models and Gains From Trade

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

Michael and Angelo 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 questions that follow. -Does either Michael or Angelo have a comparative advantage?

Mrs.Abel has a comparative advantage in producing cabbage if,in comparison to Mrs.Bee,Mrs.Abel can grow cabbage:

Refer to the following figure to answer the questions that follow. -Which point on the figure represents a point that is unattainable with current resources and technology?

As you move from one efficient point on the production possibilities frontier (PPF)to another efficient point on the PPF,you experience:

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

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

A positive statement:

The ability of one producer to create more of a good than another producer using the same quantity of resources is called:

Draw a production possibilities frontier (PPF)that shows a pizza shop's production trade-offs between producing pizzas and stromboli.Suppose the pizza shop upgrades to a larger,more automated oven.On the same graph,show how the PPF changes.(The oven is used to bake both pizzas and stromboli.)

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 questions that follow. -What is DiNozzo's opportunity cost of making a wooden boat?

Economists use the scientific method and the tools of economics to study:

A society that is producing its maximum combination of goods and using all available resources for production:

When the opportunity cost of producing a good rises as you produce more of it,you experience:

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

Refer to the following table to answer the questions that follow. -Given an eight-hour workday,which statement best describes the absolute advantage evident in the table?

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 questions that follow. -What is Gibbs's opportunity cost of making a wooden boat?

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

Suppose that Dwight and Jim can either make salads or grill steaks.Their maximum output per hour is listed in the following table.Given the same quantity of resources,at what terms of trade (relative price ratio)could they specialize and trade so that both consume outside their own production possibilities frontiers (PPFs)?

In economic terms,how would you state what has happened when your neighbor says he is unwilling to help you mow your lawn because you are unwilling to help him teach his kids how to speak with a British accent?