Exam 2: Model Building and Gains From Trade

The accompanying figures depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli.Which statement about comparative advantage is true?

Refer to the following table to answer the next three questions. -Suppose that Alicia Keys 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)?

Consider the following scenario.Two friends,Rachel and Joey,enjoy baking bread and making apple pies.Rachel takes two hours to bake one loaf of bread and one hour to make one pie.Joey takes four hours to bake one loaf of bread and four hours to make one pie.If Rachel and Joey decide to specialize in order to maximize their combined output,who should produce what?

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 three questions. -What is Jim's opportunity cost of making 1 stromboli?

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

If Elaine can produce more output from a set amount of resources than Jerry can,you know that:

Michael and Angelo are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Does either one have a comparative advantage?

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

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

On the television show "MythBusters," the hosts design experiments,collect data,and test theories based on popular myths.This is an example of:

Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the next four questions. a.Graph A b.Graph B c.Graph C d.Graph D e.Graph E -Suppose the plow is invented and agricultural productivity greatly increases.Which of the following graphs best depicts how this would affect the PPF?

Refer to the following figure to answer the next four questions. -What is the most preferred consumption point for a pie-appreciating society?

Refer to the following table to answer the next two questions. -Given the same quantity of resources,what is Alicia Keys's opportunity cost of producing a New York pizza?

The existing entries in the following table show the maximum quantities of milk shakes or fruit smoothies the college president and dining hall staffer could make during an afternoon shift,given a fixed amount of resources. a. Fill in the remaining part of the table (be sure to label the units) and answer the questions below. b. Who has a comparative advantage in producing smoothies? c. Who has an absolute advantage in producing milk shakes?

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 next four questions. -What is Michael's opportunity cost of a painting?

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

Suppose you are studying a production possibilities frontier (PPF) that has a bowed-out shape relative to the origin.What causes this shape?

The movie Saving Private Ryan is about a military mission to find and recover a particular soldier-Private Ryan.The movie is predominantly about how much was given up in an effort to save this one particular soldier.The main economic theme of the movie is:

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

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