Exam 2: Model Building and Gains From Trade

A town on the Gulf Coast is battered by a massive hurricane that destroys most of its productive resources.The community's production possibilities frontier (PPF)would show an

Which of the following is a positive statement?

Suppose that Leslie and Hussein can either make salads or grill steaks.Their maximum outputs per hour are 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)?

use the figure below to answer the following questions -This society could reach point F when there is a(n)

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

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF)?

Which of the following is a positive statement?

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?

Consumer goods

Which of the following is an important characteristic of good economic models?

use the figure above to answer the following questions : -Which point in the corresponding figure shows that productive resources are NOT fully employed?

An increase in general resources that affects the production of both goods on a production possibilities frontier (PPF)would cause an

The table below shows the maximum number of burgers or hot dogs that Frances and Takeru can cook in one hour. a.Fill in the rest of the table with the opportunity cost of burgers and hot dogs for each person.Be sure to include the units. b.Identify who has a comparative advantage in producing each good.

When an economy shifts away from production of consumer goods and toward production of capital goods,for the average worker this trade-off means

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

use the figures below to answer the following questions " -Which allocation point in the short-run production possibilities frontier (PPF)will lead to the most significant growth in the long-run PPF?

Variables that are NOT accounted for in a model are called

use the Table below to answer the following questions : -Given an eight-hour workday,to experience gains from trade,

use the Table below to answer the following questions : -Given an eight-hour workday,which statement best describes the absolute advantage evident in the table?

Even though person A has an absolute advantage over person B both at producing good X and at producing good Y,it can still make sense for persons A and B to engage in trade involving goods X and Y.Explain why this is so.