Chat with AI
Deck 2: Trade-Offs, Comparative Advantage, and the Market System
Full screen (f)
Question
Question
Figure 2-1
Refer to Figure 2-1.Point C is
A)technically efficient.
B)unattainable with current resources.
C) inefficient in that not all resources are being used.
D)is the equilibrium output combination.
Refer to Figure 2-1.Point C is
A)technically efficient.
B)unattainable with current resources.
C) inefficient in that not all resources are being used.
D)is the equilibrium output combination.
Question
Question
Figure 2-1
Refer to Figure 2-1.Point A is
A)technically efficient.
B)unattainable with current resources.
C)inefficient in that not all resources are being used.
D)the equilibrium output combination.
Refer to Figure 2-1.Point A is
A)technically efficient.
B)unattainable with current resources.
C)inefficient in that not all resources are being used.
D)the equilibrium output combination.
Question
Question
Question
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.Suppose Mendonca is currently producing 60 pounds of vegetables per period.How much meat is it also producing, assuming that resources are fully utilized?
A)45 pounds of meat
B)75 pounds of meat
C)80 pounds of meat
D)100 pounds of meat
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.Suppose Mendonca is currently producing 60 pounds of vegetables per period.How much meat is it also producing, assuming that resources are fully utilized?
A)45 pounds of meat
B)75 pounds of meat
C)80 pounds of meat
D)100 pounds of meat
Question
Question
Question
Question
Question
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.What is the opportunity cost of one pound of vegetables?
A)
pound of meat
B)1.2 pounds of meat
C)
pounds of meat
D)12 pounds of meat
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.What is the opportunity cost of one pound of vegetables?
A)
pound of meatB)1.2 pounds of meat
C)
pounds of meatD)12 pounds of meat
Question
Figure 2-1
Refer to Figure 2-1.Point B is
A)technically efficient.
B)unattainable with current resources.
C)inefficient in that not all resources are being used.
D)the equilibrium output combination.
Refer to Figure 2-1.Point B is
A)technically efficient.
B)unattainable with current resources.
C)inefficient in that not all resources are being used.
D)the equilibrium output combination.
Question
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it produce to maximize production?
A)0 pounds of vegetables
B)60 pounds of vegetables
C)100 pounds of vegetables
D)160 pounds of vegetables
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it produce to maximize production?
A)0 pounds of vegetables
B)60 pounds of vegetables
C)100 pounds of vegetables
D)160 pounds of vegetables
Question
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.If Mendonca chooses to produce 160 pounds of vegetables, how much meat can it produce to maximize production?
A)0 pounds of meat
B)30 pounds of meat
C)60 pounds of meat
D)120 pounds of meat
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.If Mendonca chooses to produce 160 pounds of vegetables, how much meat can it produce to maximize production?
A)0 pounds of meat
B)30 pounds of meat
C)60 pounds of meat
D)120 pounds of meat
Question
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.What is the opportunity cost of one pound of meat?
A)
pound of vegetables
B)
pounds of vegetables
C)1.6 pounds of vegetables
D)16 pounds of vegetables
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.What is the opportunity cost of one pound of meat?
A)
pound of vegetablesB)
pounds of vegetablesC)1.6 pounds of vegetables
D)16 pounds of vegetables
Question
Question
Question
Question
Question
Table 2-2
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 5 pillows and 21 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 5 pillows and 21 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Question
Question
Table 2-1
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 30 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 30 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Question
Question
Table 2-1
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.Tomaso faces ________ opportunity costs in the production of pizzas and calzones.
A)increasing
B)decreasing
C)constant
D)negative
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.Tomaso faces ________ opportunity costs in the production of pizzas and calzones.
A)increasing
B)decreasing
C)constant
D)negative
Question
Question
Figure 2-3
Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-3 represent his production possibilities frontier that displays increasing opportunity costs?
A)Graph A
B)Graph B
C)Graph C
D)either Graph A or Graph C
E)either Graph B or Graph C
Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-3 represent his production possibilities frontier that displays increasing opportunity costs?
A)Graph A
B)Graph B
C)Graph C
D)either Graph A or Graph C
E)either Graph B or Graph C
Question
Question
Question
Table 2-1
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 15 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 15 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Question
Figure 2-3
Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.His land is equally suitable for raising either animal.Which of the graphs in Figure 2-3 represent his production possibilities frontier?
A)Graph A
B)Graph B
C)Graph C
D)either Graph A or Graph C
E)either Graph B or Graph C
Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.His land is equally suitable for raising either animal.Which of the graphs in Figure 2-3 represent his production possibilities frontier?
A)Graph A
B)Graph B
C)Graph C
D)either Graph A or Graph C
E)either Graph B or Graph C
Question
Table 2-2
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.Billie faces ________ opportunity costs in the production of pillows and blankets.
A)increasing
B)constant
C)decreasing
D)negative
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.Billie faces ________ opportunity costs in the production of pillows and blankets.
A)increasing
B)constant
C)decreasing
D)negative
Question
Table 2-1
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 36 pizzas and 30 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 36 pizzas and 30 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Question
Question
Question
Question
Table 2-2
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Question
Table 2-2
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 27 pillows and 14 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 27 pillows and 14 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Question
Question
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.The linear production possibilities frontier in the figure indicates that
A)Mendonca has a comparative advantage in the production of vegetables.
B)Mendonca has a comparative disadvantage in the production of meat.
C)the tradeoff between meat and vegetables is constant.
D)it is progressively more expensive to produce meat.
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.The linear production possibilities frontier in the figure indicates that
A)Mendonca has a comparative advantage in the production of vegetables.
B)Mendonca has a comparative disadvantage in the production of meat.
C)the tradeoff between meat and vegetables is constant.
D)it is progressively more expensive to produce meat.
Question
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the patent protection period to 30 years
B.an increase of a nation's capital stock
C.an improved property rights system
Which of the events listed above could cause a movement from V to W?
A)a only
B)a and b only
C)a and c only
D)b and c only
E)a, b, and c
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the patent protection period to 30 years
B.an increase of a nation's capital stock
C.an improved property rights system
Which of the events listed above could cause a movement from V to W?
A)a only
B)a and b only
C)a and c only
D)b and c only
E)a, b, and c
Question
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from Y to Z
A)represents an increase in the demand for plastic products.
B)is the result of a decrease in preference for food products.
C)is the result of advancements in food production technology.
D)is the result of advancements in plastic production technology.
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from Y to Z
A)represents an increase in the demand for plastic products.
B)is the result of a decrease in preference for food products.
C)is the result of advancements in food production technology.
D)is the result of advancements in plastic production technology.
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from ________ is the result of negative technological change in plastic production.
A)V to X
B)X to W
C)W to Z
D)Z to Y
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from ________ is the result of negative technological change in plastic production.
A)V to X
B)X to W
C)W to Z
D)Z to Y
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from ________ could occur because of an influx of immigrant labor.
A)W to V
B)X to W
C)W to Z
D)Y to W
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from ________ could occur because of an influx of immigrant labor.
A)W to V
B)X to W
C)W to Z
D)Y to W
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the unemployment rate
B.general technological advancement
C.a decrease in consumer wealth
Which of the events listed above could cause a movement from X to V?
A)a only
B)a and b only
C)b and c only
D)a, b, and c
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the unemployment rate
B.general technological advancement
C.a decrease in consumer wealth
Which of the events listed above could cause a movement from X to V?
A)a only
B)a and b only
C)b and c only
D)a, b, and c
Question
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a decrease in the unemployment rate
B.general technological advancement
C.an increase in consumer wealth
Which of the events listed above could cause a movement from V to W?
A)a only
B)a and b only
C)b and c only
D)a, b, and c
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a decrease in the unemployment rate
B.general technological advancement
C.an increase in consumer wealth
Which of the events listed above could cause a movement from V to W?
A)a only
B)a and b only
C)b and c only
D)a, b, and c
Question
Figure 2-5
Refer to Figure 2-5.If the economy is currently producing at point W, what is the opportunity cost of moving to point X?
A)3 million tons of steel
B)19 million tons of steel
C)5 million tons of paper
D)9 million tons of paper
Refer to Figure 2-5.If the economy is currently producing at point W, what is the opportunity cost of moving to point X?
A)3 million tons of steel
B)19 million tons of steel
C)5 million tons of paper
D)9 million tons of paper
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a decrease in the unemployment rate
B.an increase in a nation's money supply
C.an influx of immigrant workers
Which of the events listed above could cause a movement from X to Z?
A)a, b, and c
B)a and b only
C)a and c only
D)a only
E)c only
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a decrease in the unemployment rate
B.an increase in a nation's money supply
C.an influx of immigrant workers
Which of the events listed above could cause a movement from X to Z?
A)a, b, and c
B)a and b only
C)a and c only
D)a only
E)c only
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a reduction in the patent protection period to no more than 2 years
B.a war that destroys a substantial portion of a nation's capital stock
C.the lack of a secure and enforceable property rights system
Which of the events listed above could cause a movement from W to V?
A)a only
B)a and b only
C)a and c only
D)b and c only
E)a, b, and c
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a reduction in the patent protection period to no more than 2 years
B.a war that destroys a substantial portion of a nation's capital stock
C.the lack of a secure and enforceable property rights system
Which of the events listed above could cause a movement from W to V?
A)a only
B)a and b only
C)a and c only
D)b and c only
E)a, b, and c
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the unemployment rate
B.a decrease in a nation's money supply
C.a war that kills a significant portion of a nation's population
Which of the events listed above could cause a movement from Y to W?
A)a, b, and c
B)a and b only
C)a and c only
D)a only
E)c only
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the unemployment rate
B.a decrease in a nation's money supply
C.a war that kills a significant portion of a nation's population
Which of the events listed above could cause a movement from Y to W?
A)a, b, and c
B)a and b only
C)a and c only
D)a only
E)c only
Question
Figure 2-5
Refer to Figure 2-5.If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?
A)2 million tons of steel
B)zero
C)9 million tons of paper
D)16 million tons of paper
Refer to Figure 2-5.If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?
A)2 million tons of steel
B)zero
C)9 million tons of paper
D)16 million tons of paper
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents advancements in technology with respect to only plastic production?
A)a, b, and c
B)b and c only
C)b only
D)c only
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents advancements in technology with respect to only plastic production?
A)a, b, and c
B)b and c only
C)b only
D)c only
Question
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from X to Y
A)could be due to a change in consumers' tastes and preferences.
B)could occur because of an influx of immigrant labor.
C)is the result of advancements in food production technology only, with no change in the technology for plastic production.
D)is the result of advancements in plastic production technology only, with no change in food production technology.
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from X to Y
A)could be due to a change in consumers' tastes and preferences.
B)could occur because of an influx of immigrant labor.
C)is the result of advancements in food production technology only, with no change in the technology for plastic production.
D)is the result of advancements in plastic production technology only, with no change in food production technology.
Question
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents economic growth?
A)a, b, and c
B)b and c only
C)a only
D)b only
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents economic growth?
A)a, b, and c
B)b and c only
C)a only
D)b only
Question
Figure 2-5
Refer to Figure 2-5.If the economy is currently producing at point X, what is the opportunity cost of moving to point Y?
A)5 million tons of steel
B)9 million tons of paper
C)5 million tons of paper
D)14 million tons of steel
Refer to Figure 2-5.If the economy is currently producing at point X, what is the opportunity cost of moving to point Y?
A)5 million tons of steel
B)9 million tons of paper
C)5 million tons of paper
D)14 million tons of steel
Question
Question
Figure 2-7
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume that in response to changing consumer demands, Apple cuts back on the production of traditional vehicles and increases its production of self-driving vehicles.This strategy is best represented by the
A)movement from E to F in Graph A.
B)movement from J to G in Graph B.
C)movement from L to K in Graph C.
D)movement from H to J in Graph B.
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume that in response to changing consumer demands, Apple cuts back on the production of traditional vehicles and increases its production of self-driving vehicles.This strategy is best represented by the
A)movement from E to F in Graph A.
B)movement from J to G in Graph B.
C)movement from L to K in Graph C.
D)movement from H to J in Graph B.
Question
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point D, what is the opportunity cost of moving to point B?
A)8 thousand wrenches
B)23 thousand hammers
C)30 thousand wrenches
D)0 hammers
Refer to Figure 2-6.If the economy is currently producing at point D, what is the opportunity cost of moving to point B?
A)8 thousand wrenches
B)23 thousand hammers
C)30 thousand wrenches
D)0 hammers
Question
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A)13 thousand hammers
B)10 thousand hammers
C)8 thousand wrenches
D)0 wrenches
Refer to Figure 2-6.If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A)13 thousand hammers
B)10 thousand hammers
C)8 thousand wrenches
D)0 wrenches
Question
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A)10 thousand wrenches
B)13 thousand hammers
C)30 thousand wrenches
D)23 thousand hammers
Refer to Figure 2-6.If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A)10 thousand wrenches
B)13 thousand hammers
C)30 thousand wrenches
D)23 thousand hammers
Question
Question
Figure 2-7
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume a technological advancement greatly reduces the cost to produce self-driving vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from G to H in Graph B.
C)movement from K to L in Graph C.
D)movement from H to J in Graph B.
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume a technological advancement greatly reduces the cost to produce self-driving vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from G to H in Graph B.
C)movement from K to L in Graph C.
D)movement from H to J in Graph B.
Question
Figure 2-7
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies.If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A)5 pies
B)10 pies
C)15 pies
D)20 pies
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies.If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A)5 pies
B)10 pies
C)15 pies
D)20 pies
Question
Question
Figure 2-8
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.What is the opportunity cost of 100 dozen roses?
A)0.8 dozen orchids
B)5 dozen orchids
C)40 dozen orchids
D)80 dozen orchids
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.What is the opportunity cost of 100 dozen roses?
A)0.8 dozen orchids
B)5 dozen orchids
C)40 dozen orchids
D)80 dozen orchids
Question
Table 2-3
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 50 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 50 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Question
Figure 2-8
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.Suppose Vidalia is currently producing 120 dozen roses per period.How many orchids is it also producing, assuming that resources are fully utilized?
A)20 dozen orchids
B)32 dozen orchids
C)44 dozen orchids
D)68 dozen orchids
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.Suppose Vidalia is currently producing 120 dozen roses per period.How many orchids is it also producing, assuming that resources are fully utilized?
A)20 dozen orchids
B)32 dozen orchids
C)44 dozen orchids
D)68 dozen orchids
Question
Figure 2-8
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.Suppose Vidalia is currently producing 60 dozen orchids per period.How many roses is it also producing, assuming that resources are fully utilized?
A)40 dozen roses
B)50 dozen roses
C)60 dozen roses
D)100 dozen roses
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.Suppose Vidalia is currently producing 60 dozen orchids per period.How many roses is it also producing, assuming that resources are fully utilized?
A)40 dozen roses
B)50 dozen roses
C)60 dozen roses
D)100 dozen roses
Question
Question
Question
Table 2-3
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 100 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 100 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Question
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A)8 thousand wrenches
B)6 thousand hammers
C)30 thousand wrenches
D)23 thousand hammers
Refer to Figure 2-6.If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A)8 thousand wrenches
B)6 thousand hammers
C)30 thousand wrenches
D)23 thousand hammers
Question
Figure 2-8
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.What is the opportunity cost of 80 dozen orchids?
A)0 roses
B)2.5 dozen roses
C)40 dozen roses
D)200 dozen roses
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.What is the opportunity cost of 80 dozen orchids?
A)0 roses
B)2.5 dozen roses
C)40 dozen roses
D)200 dozen roses
Question
Table 2-3
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 120 sliders and 100 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 120 sliders and 100 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Question
Figure 2-7
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume that in 2022, Apple temporarily shuts down one of its factories for an extensive renovation, and this reduces the amount of production capacity available for both types of vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from H to J in Graph B.
C)movement from K to L in Graph C.
D)movement from J to G in Graph B.
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume that in 2022, Apple temporarily shuts down one of its factories for an extensive renovation, and this reduces the amount of production capacity available for both types of vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from H to J in Graph B.
C)movement from K to L in Graph C.
D)movement from J to G in Graph B.
Question
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A)13 thousand hammers
B)10 thousand hammers
C)30 thousand wrenches
D)0 wrenches
Refer to Figure 2-6.If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A)13 thousand hammers
B)10 thousand hammers
C)30 thousand wrenches
D)0 wrenches
Unlock Deck
Sign up to unlock the cards in this deck!
Unlock Deck
Unlock Deck
1/258
Play
Full screen (f)
Deck 2: Trade-Offs, Comparative Advantage, and the Market System
1
Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves.If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses?
A)2.5 silk leaves
B)10 silk leaves
C)25 silk leaves
D)55 silk leaves
A)2.5 silk leaves
B)10 silk leaves
C)25 silk leaves
D)55 silk leaves
C
2
Figure 2-1
Refer to Figure 2-1.Point C is
A)technically efficient.
B)unattainable with current resources.
C) inefficient in that not all resources are being used.
D)is the equilibrium output combination.
Refer to Figure 2-1.Point C is
A)technically efficient.
B)unattainable with current resources.
C) inefficient in that not all resources are being used.
D)is the equilibrium output combination.
B
3
Tesla Motors manufacturers its cars at a plant in Fremont, California.At this plant, Tesla is able to take advantage of the high level of technical training possessed by its American workers, but it also sacrifices the ability to pay lower wages had it chosen to open its plant in a low-wage country such as Mexico, India, or China.In deciding to open the Fremont plant, Tesla
A)faced no trade-offs because employing more technically-skilled workers increased efficiency.
B)faced a trade-off between higher cost and lower precision.
C)adopted a negative technological change because it chose high-skilled workers over low-paid workers.
D)eroded some of its competitiveness in the luxury electric car market because of its increased cost of production.
A)faced no trade-offs because employing more technically-skilled workers increased efficiency.
B)faced a trade-off between higher cost and lower precision.
C)adopted a negative technological change because it chose high-skilled workers over low-paid workers.
D)eroded some of its competitiveness in the luxury electric car market because of its increased cost of production.
B
4
Figure 2-1
Refer to Figure 2-1.Point A is
A)technically efficient.
B)unattainable with current resources.
C)inefficient in that not all resources are being used.
D)the equilibrium output combination.
Refer to Figure 2-1.Point A is
A)technically efficient.
B)unattainable with current resources.
C)inefficient in that not all resources are being used.
D)the equilibrium output combination.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
5
The principle of opportunity cost is that
A)in a market economy, taking advantage of profitable opportunities involves some money cost.
B)the economic cost of using a factor of production is the alternative use of that factor that is given up.
C)taking advantage of investment opportunities involves costs.
D)the cost of production varies depending on the opportunity for technological application.
A)in a market economy, taking advantage of profitable opportunities involves some money cost.
B)the economic cost of using a factor of production is the alternative use of that factor that is given up.
C)taking advantage of investment opportunities involves costs.
D)the cost of production varies depending on the opportunity for technological application.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
6
The production possibilities frontier model shows that
A)if consumers decide to buy more of a product, its price will increase.
B)a market economy is more efficient in producing goods and services than is a centrally planned economy.
C)economic growth can only be achieved by free market economies.
D)if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.
A)if consumers decide to buy more of a product, its price will increase.
B)a market economy is more efficient in producing goods and services than is a centrally planned economy.
C)economic growth can only be achieved by free market economies.
D)if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
7
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.Suppose Mendonca is currently producing 60 pounds of vegetables per period.How much meat is it also producing, assuming that resources are fully utilized?
A)45 pounds of meat
B)75 pounds of meat
C)80 pounds of meat
D)100 pounds of meat
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.Suppose Mendonca is currently producing 60 pounds of vegetables per period.How much meat is it also producing, assuming that resources are fully utilized?
A)45 pounds of meat
B)75 pounds of meat
C)80 pounds of meat
D)100 pounds of meat
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
8
Scarcity
A)stems from the incompatibility between limited resources and unlimited wants.
B)can be overcome by discovering new resources.
C)can be eliminated by rationing products.
D)is a bigger problem in market economies than in socialist economies.
A)stems from the incompatibility between limited resources and unlimited wants.
B)can be overcome by discovering new resources.
C)can be eliminated by rationing products.
D)is a bigger problem in market economies than in socialist economies.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
9
If the production possibilities frontier is ________, then opportunity costs are constant as more of one good is produced.
A)bowed out
B)bowed in
C)non-linear
D)linear
A)bowed out
B)bowed in
C)non-linear
D)linear
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
10
The points outside the production possibilities frontier are
A)efficient.
B)attainable.
C)inefficient.
D)unattainable.
A)efficient.
B)attainable.
C)inefficient.
D)unattainable.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
11
The production possibilities frontier model assumes which of the following?
A)Labor, capital, land, and natural resources are unlimited in quantity.
B)The economy produces only two products.
C)Production of any level of the two products that the economy produces is currently possible.
D)The level of technology is variable.
A)Labor, capital, land, and natural resources are unlimited in quantity.
B)The economy produces only two products.
C)Production of any level of the two products that the economy produces is currently possible.
D)The level of technology is variable.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
12
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.What is the opportunity cost of one pound of vegetables?
A) pound of meat
B)1.2 pounds of meat
C) pounds of meat
D)12 pounds of meat
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.What is the opportunity cost of one pound of vegetables?
A)
pound of meatB)1.2 pounds of meat
C)
pounds of meatD)12 pounds of meat
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
13
Figure 2-1
Refer to Figure 2-1.Point B is
A)technically efficient.
B)unattainable with current resources.
C)inefficient in that not all resources are being used.
D)the equilibrium output combination.
Refer to Figure 2-1.Point B is
A)technically efficient.
B)unattainable with current resources.
C)inefficient in that not all resources are being used.
D)the equilibrium output combination.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
14
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it produce to maximize production?
A)0 pounds of vegetables
B)60 pounds of vegetables
C)100 pounds of vegetables
D)160 pounds of vegetables
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it produce to maximize production?
A)0 pounds of vegetables
B)60 pounds of vegetables
C)100 pounds of vegetables
D)160 pounds of vegetables
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
15
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.If Mendonca chooses to produce 160 pounds of vegetables, how much meat can it produce to maximize production?
A)0 pounds of meat
B)30 pounds of meat
C)60 pounds of meat
D)120 pounds of meat
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.If Mendonca chooses to produce 160 pounds of vegetables, how much meat can it produce to maximize production?
A)0 pounds of meat
B)30 pounds of meat
C)60 pounds of meat
D)120 pounds of meat
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
16
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.What is the opportunity cost of one pound of meat?
A) pound of vegetables
B) pounds of vegetables
C)1.6 pounds of vegetables
D)16 pounds of vegetables
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.What is the opportunity cost of one pound of meat?
A)
pound of vegetablesB)
pounds of vegetablesC)1.6 pounds of vegetables
D)16 pounds of vegetables
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
17
Pierre can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties and 15 neckties.If he now produces 35 bow ties and 15 neckties, what is the opportunity cost of producing an additional 15 neckties?
A)2 bow ties
B)15 bow ties
C)20 bow ties
D)35 bow ties
A)2 bow ties
B)15 bow ties
C)20 bow ties
D)35 bow ties
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
18
The production possibilities frontier shows the ________ combinations of two products that can be produced in a particular time period with available resources.
A)minimum attainable
B)maximum attainable
C)only
D)equitable
A)minimum attainable
B)maximum attainable
C)only
D)equitable
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
19
The attainable production points on a production possibilities curve are
A)the horizontal and vertical intercepts.
B)the points along the production possibilities frontier.
C)the points outside the area enclosed by the production possibilities frontier.
D)the points along and inside the production possibility frontier.
A)the horizontal and vertical intercepts.
B)the points along the production possibilities frontier.
C)the points outside the area enclosed by the production possibilities frontier.
D)the points along and inside the production possibility frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
20
In a production possibilities frontier model, a point ________ the frontier is productively inefficient.
A)along
B)inside
C)outside
D)at either intercept of
A)along
B)inside
C)outside
D)at either intercept of
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
21
Table 2-2
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 5 pillows and 21 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 5 pillows and 21 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
22
Without an increase in the supplies of factors of production, how can a nation achieve economic growth?
A)by producing more high-value goods and fewer low-value goods
B)through technological advancement which enables more output with the same quantity of resources
C)by lowering the prices of factors of production
D)by increasing the prices of factors of production
A)by producing more high-value goods and fewer low-value goods
B)through technological advancement which enables more output with the same quantity of resources
C)by lowering the prices of factors of production
D)by increasing the prices of factors of production
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
23
Table 2-1
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 30 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 30 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
24
An outward shift of a nation's production possibilities frontier represents
A)economic growth.
B)rising prices of the two goods on the production possibilities frontier model.
C)an impossible situation.
D)a situation in which a country produces more of one good and less of another.
A)economic growth.
B)rising prices of the two goods on the production possibilities frontier model.
C)an impossible situation.
D)a situation in which a country produces more of one good and less of another.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
25
Table 2-1
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.Tomaso faces ________ opportunity costs in the production of pizzas and calzones.
A)increasing
B)decreasing
C)constant
D)negative
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.Tomaso faces ________ opportunity costs in the production of pizzas and calzones.
A)increasing
B)decreasing
C)constant
D)negative
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
26
The slope of a production possibilities frontier
A)has no economic relevance or meaning.
B)is always constant.
C)is always varying.
D)measures the opportunity cost of producing one more unit of a good.
A)has no economic relevance or meaning.
B)is always constant.
C)is always varying.
D)measures the opportunity cost of producing one more unit of a good.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
27
Figure 2-3
Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-3 represent his production possibilities frontier that displays increasing opportunity costs?
A)Graph A
B)Graph B
C)Graph C
D)either Graph A or Graph C
E)either Graph B or Graph C
Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-3 represent his production possibilities frontier that displays increasing opportunity costs?
A)Graph A
B)Graph B
C)Graph C
D)either Graph A or Graph C
E)either Graph B or Graph C
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
28
A production possibilities frontier with a bowed-outward shape indicates
A)the possibility of inefficient production.
B)constant opportunity costs as more and more of one good is produced.
C)increasing opportunity costs as more and more of one good is produced.
D)decreasing opportunity costs as more and more of one good is produced.
A)the possibility of inefficient production.
B)constant opportunity costs as more and more of one good is produced.
C)increasing opportunity costs as more and more of one good is produced.
D)decreasing opportunity costs as more and more of one good is produced.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
29
If opportunity costs are constant, the production possibilities frontier would be graphed as
A)a ray from the origin.
B)a positively sloped straight line.
C)a negatively sloped curve bowed in toward the origin.
D)a negatively sloped straight line.
A)a ray from the origin.
B)a positively sloped straight line.
C)a negatively sloped curve bowed in toward the origin.
D)a negatively sloped straight line.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
30
Table 2-1
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 15 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 15 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
31
Figure 2-3
Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.His land is equally suitable for raising either animal.Which of the graphs in Figure 2-3 represent his production possibilities frontier?
A)Graph A
B)Graph B
C)Graph C
D)either Graph A or Graph C
E)either Graph B or Graph C
Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.His land is equally suitable for raising either animal.Which of the graphs in Figure 2-3 represent his production possibilities frontier?
A)Graph A
B)Graph B
C)Graph C
D)either Graph A or Graph C
E)either Graph B or Graph C
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
32
Table 2-2
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.Billie faces ________ opportunity costs in the production of pillows and blankets.
A)increasing
B)constant
C)decreasing
D)negative
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.Billie faces ________ opportunity costs in the production of pillows and blankets.
A)increasing
B)constant
C)decreasing
D)negative
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
33
Table 2-1
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 36 pizzas and 30 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Production choices for Tomaso's Trattoria
Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 36 pizzas and 30 calzones would appear
A)along Tomaso's production possibilities frontier.
B)inside Tomaso's production possibilities frontier.
C)outside Tomaso's production possibilities frontier.
D)at the horizontal intercept of Tomaso's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
34
Economic decline (negative growth)is represented on a production possibilities frontier model by the production possibility frontier
A)shifting outward.
B)shifting inward.
C)becoming steeper.
D)becoming flatter.
A)shifting outward.
B)shifting inward.
C)becoming steeper.
D)becoming flatter.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
35
An inward shift of a nation's production possibilities frontier can occur due to
A)a reduction in unemployment.
B)a natural disaster like a hurricane or bad earthquake.
C)a change in the amounts of one good desired.
D)an increase in the labor force.
A)a reduction in unemployment.
B)a natural disaster like a hurricane or bad earthquake.
C)a change in the amounts of one good desired.
D)an increase in the labor force.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
36
Increasing opportunity cost is represented by a ________ production possibilities frontier.
A)linear
B)bowed in
C)bowed out
D)vertical
A)linear
B)bowed in
C)bowed out
D)vertical
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
37
Table 2-2
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
38
Table 2-2
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 27 pillows and 14 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Production choices for Billie's Bedroom Shop
Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 27 pillows and 14 blankets would appear
A)along Billie's production possibilities frontier.
B)inside Billie's production possibilities frontier.
C)outside Billie's production possibilities frontier.
D)at the vertical intercept of Billie's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
39
________ marginal opportunity cost implies that the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
A)Increasing
B)Decreasing
C)Constant
D)Negative
A)Increasing
B)Decreasing
C)Constant
D)Negative
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
40
Figure 2-2
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.The linear production possibilities frontier in the figure indicates that
A)Mendonca has a comparative advantage in the production of vegetables.
B)Mendonca has a comparative disadvantage in the production of meat.
C)the tradeoff between meat and vegetables is constant.
D)it is progressively more expensive to produce meat.
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
Refer to Figure 2-2.The linear production possibilities frontier in the figure indicates that
A)Mendonca has a comparative advantage in the production of vegetables.
B)Mendonca has a comparative disadvantage in the production of meat.
C)the tradeoff between meat and vegetables is constant.
D)it is progressively more expensive to produce meat.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
41
Which of the following would shift a nation's production possibilities frontier outward?
A)discovering a cheaper way to convert sunshine into electricity
B)an increase in demand for the nation's products
C)a decrease in the unemployment rate
D)a law requiring workers to retire at age 50
A)discovering a cheaper way to convert sunshine into electricity
B)an increase in demand for the nation's products
C)a decrease in the unemployment rate
D)a law requiring workers to retire at age 50
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
42
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the patent protection period to 30 years
B.an increase of a nation's capital stock
C.an improved property rights system
Which of the events listed above could cause a movement from V to W?
A)a only
B)a and b only
C)a and c only
D)b and c only
E)a, b, and c
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the patent protection period to 30 years
B.an increase of a nation's capital stock
C.an improved property rights system
Which of the events listed above could cause a movement from V to W?
A)a only
B)a and b only
C)a and c only
D)b and c only
E)a, b, and c
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
43
If society decides it wants more of one good and all resources are fully utilized, then
A)it is unable to do this unless technology advances.
B)additional resource supplies will have to be found.
C)it has to give up some of another good and incur some opportunity costs.
D)more unemployment will occur.
A)it is unable to do this unless technology advances.
B)additional resource supplies will have to be found.
C)it has to give up some of another good and incur some opportunity costs.
D)more unemployment will occur.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
44
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from Y to Z
A)represents an increase in the demand for plastic products.
B)is the result of a decrease in preference for food products.
C)is the result of advancements in food production technology.
D)is the result of advancements in plastic production technology.
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from Y to Z
A)represents an increase in the demand for plastic products.
B)is the result of a decrease in preference for food products.
C)is the result of advancements in food production technology.
D)is the result of advancements in plastic production technology.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
45
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from ________ is the result of negative technological change in plastic production.
A)V to X
B)X to W
C)W to Z
D)Z to Y
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from ________ is the result of negative technological change in plastic production.
A)V to X
B)X to W
C)W to Z
D)Z to Y
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
46
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from ________ could occur because of an influx of immigrant labor.
A)W to V
B)X to W
C)W to Z
D)Y to W
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from ________ could occur because of an influx of immigrant labor.
A)W to V
B)X to W
C)W to Z
D)Y to W
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
47
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the unemployment rate
B.general technological advancement
C.a decrease in consumer wealth
Which of the events listed above could cause a movement from X to V?
A)a only
B)a and b only
C)b and c only
D)a, b, and c
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the unemployment rate
B.general technological advancement
C.a decrease in consumer wealth
Which of the events listed above could cause a movement from X to V?
A)a only
B)a and b only
C)b and c only
D)a, b, and c
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
48
Suppose there is no unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?
A)It can only achieve this with an advance in technology.
B)It can increase output without giving up another good.
C)It can only achieve this with an increase in resource supplies.
D)It will have to give up production and consumption of some other good.
A)It can only achieve this with an advance in technology.
B)It can increase output without giving up another good.
C)It can only achieve this with an increase in resource supplies.
D)It will have to give up production and consumption of some other good.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
49
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a decrease in the unemployment rate
B.general technological advancement
C.an increase in consumer wealth
Which of the events listed above could cause a movement from V to W?
A)a only
B)a and b only
C)b and c only
D)a, b, and c
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a decrease in the unemployment rate
B.general technological advancement
C.an increase in consumer wealth
Which of the events listed above could cause a movement from V to W?
A)a only
B)a and b only
C)b and c only
D)a, b, and c
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
50
Figure 2-5
Refer to Figure 2-5.If the economy is currently producing at point W, what is the opportunity cost of moving to point X?
A)3 million tons of steel
B)19 million tons of steel
C)5 million tons of paper
D)9 million tons of paper
Refer to Figure 2-5.If the economy is currently producing at point W, what is the opportunity cost of moving to point X?
A)3 million tons of steel
B)19 million tons of steel
C)5 million tons of paper
D)9 million tons of paper
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
51
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a decrease in the unemployment rate
B.an increase in a nation's money supply
C.an influx of immigrant workers
Which of the events listed above could cause a movement from X to Z?
A)a, b, and c
B)a and b only
C)a and c only
D)a only
E)c only
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a decrease in the unemployment rate
B.an increase in a nation's money supply
C.an influx of immigrant workers
Which of the events listed above could cause a movement from X to Z?
A)a, b, and c
B)a and b only
C)a and c only
D)a only
E)c only
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
52
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a reduction in the patent protection period to no more than 2 years
B.a war that destroys a substantial portion of a nation's capital stock
C.the lack of a secure and enforceable property rights system
Which of the events listed above could cause a movement from W to V?
A)a only
B)a and b only
C)a and c only
D)b and c only
E)a, b, and c
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.a reduction in the patent protection period to no more than 2 years
B.a war that destroys a substantial portion of a nation's capital stock
C.the lack of a secure and enforceable property rights system
Which of the events listed above could cause a movement from W to V?
A)a only
B)a and b only
C)a and c only
D)b and c only
E)a, b, and c
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
53
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the unemployment rate
B.a decrease in a nation's money supply
C.a war that kills a significant portion of a nation's population
Which of the events listed above could cause a movement from Y to W?
A)a, b, and c
B)a and b only
C)a and c only
D)a only
E)c only
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following events:
A.an increase in the unemployment rate
B.a decrease in a nation's money supply
C.a war that kills a significant portion of a nation's population
Which of the events listed above could cause a movement from Y to W?
A)a, b, and c
B)a and b only
C)a and c only
D)a only
E)c only
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
54
Figure 2-5
Refer to Figure 2-5.If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?
A)2 million tons of steel
B)zero
C)9 million tons of paper
D)16 million tons of paper
Refer to Figure 2-5.If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?
A)2 million tons of steel
B)zero
C)9 million tons of paper
D)16 million tons of paper
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
55
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents advancements in technology with respect to only plastic production?
A)a, b, and c
B)b and c only
C)b only
D)c only
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents advancements in technology with respect to only plastic production?
A)a, b, and c
B)b and c only
C)b only
D)c only
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
56
According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?
A)Fewer goods will be produced for consumption today.
B)The production possibilities frontier will shift inward in the future.
C)Future economic growth will decline.
D)The country's total production will fall.
A)Fewer goods will be produced for consumption today.
B)The production possibilities frontier will shift inward in the future.
C)Future economic growth will decline.
D)The country's total production will fall.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
57
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from X to Y
A)could be due to a change in consumers' tastes and preferences.
B)could occur because of an influx of immigrant labor.
C)is the result of advancements in food production technology only, with no change in the technology for plastic production.
D)is the result of advancements in plastic production technology only, with no change in food production technology.
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.A movement from X to Y
A)could be due to a change in consumers' tastes and preferences.
B)could occur because of an influx of immigrant labor.
C)is the result of advancements in food production technology only, with no change in the technology for plastic production.
D)is the result of advancements in plastic production technology only, with no change in food production technology.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
58
Figure 2-4
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents economic growth?
A)a, b, and c
B)b and c only
C)a only
D)b only
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
Refer to Figure 2-4.Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents economic growth?
A)a, b, and c
B)b and c only
C)a only
D)b only
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
59
Figure 2-5
Refer to Figure 2-5.If the economy is currently producing at point X, what is the opportunity cost of moving to point Y?
A)5 million tons of steel
B)9 million tons of paper
C)5 million tons of paper
D)14 million tons of steel
Refer to Figure 2-5.If the economy is currently producing at point X, what is the opportunity cost of moving to point Y?
A)5 million tons of steel
B)9 million tons of paper
C)5 million tons of paper
D)14 million tons of steel
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
60
The Great Depression of the 1930s, with a large number of workers and factories unemployed, would be represented in a production possibilities frontier graph by
A)a point inside the frontier.
B)a point outside the frontier.
C)a point on the frontier.
D)an intercept on either the vertical or the horizontal axis.
A)a point inside the frontier.
B)a point outside the frontier.
C)a point on the frontier.
D)an intercept on either the vertical or the horizontal axis.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
61
Figure 2-7
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume that in response to changing consumer demands, Apple cuts back on the production of traditional vehicles and increases its production of self-driving vehicles.This strategy is best represented by the
A)movement from E to F in Graph A.
B)movement from J to G in Graph B.
C)movement from L to K in Graph C.
D)movement from H to J in Graph B.
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume that in response to changing consumer demands, Apple cuts back on the production of traditional vehicles and increases its production of self-driving vehicles.This strategy is best represented by the
A)movement from E to F in Graph A.
B)movement from J to G in Graph B.
C)movement from L to K in Graph C.
D)movement from H to J in Graph B.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
62
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point D, what is the opportunity cost of moving to point B?
A)8 thousand wrenches
B)23 thousand hammers
C)30 thousand wrenches
D)0 hammers
Refer to Figure 2-6.If the economy is currently producing at point D, what is the opportunity cost of moving to point B?
A)8 thousand wrenches
B)23 thousand hammers
C)30 thousand wrenches
D)0 hammers
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
63
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A)13 thousand hammers
B)10 thousand hammers
C)8 thousand wrenches
D)0 wrenches
Refer to Figure 2-6.If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A)13 thousand hammers
B)10 thousand hammers
C)8 thousand wrenches
D)0 wrenches
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
64
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A)10 thousand wrenches
B)13 thousand hammers
C)30 thousand wrenches
D)23 thousand hammers
Refer to Figure 2-6.If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A)10 thousand wrenches
B)13 thousand hammers
C)30 thousand wrenches
D)23 thousand hammers
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
65
In a report made to the U.S.Congress in 2001, the National Academy of Sciences cautioned that if fuel economy encourages the production of smaller and lighter cars, "Some additional traffic fatalities would be expected." This statement suggests that
A)U.S. auto manufacturers are more concerned about producing fuel efficient cars to compete with their Japanese and South Korean rivals than about consumer safety.
B)there is a tradeoff between safety and fuel economy.
C)society should value safety more highly than fuel economy.
D)society should value fuel economy more highly than consumer safety because of the long-term environmental benefits generated by less gasoline use.
A)U.S. auto manufacturers are more concerned about producing fuel efficient cars to compete with their Japanese and South Korean rivals than about consumer safety.
B)there is a tradeoff between safety and fuel economy.
C)society should value safety more highly than fuel economy.
D)society should value fuel economy more highly than consumer safety because of the long-term environmental benefits generated by less gasoline use.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
66
Figure 2-7
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume a technological advancement greatly reduces the cost to produce self-driving vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from G to H in Graph B.
C)movement from K to L in Graph C.
D)movement from H to J in Graph B.
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume a technological advancement greatly reduces the cost to produce self-driving vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from G to H in Graph B.
C)movement from K to L in Graph C.
D)movement from H to J in Graph B.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
67
Figure 2-7
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies.If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A)5 pies
B)10 pies
C)15 pies
D)20 pies
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies.If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A)5 pies
B)10 pies
C)15 pies
D)20 pies
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
68
The opportunity cost of taking a semester-long economics class is
A)the cost of tuition and fees only.
B)the value of the time spent in the classroom.
C)zero because there is no admission charged if you are enrolled in the course.
D)equal to the highest value of an alternative use of the time and money spent on the class.
E)the knowledge and enjoyment you receive from attending the class.
A)the cost of tuition and fees only.
B)the value of the time spent in the classroom.
C)zero because there is no admission charged if you are enrolled in the course.
D)equal to the highest value of an alternative use of the time and money spent on the class.
E)the knowledge and enjoyment you receive from attending the class.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
69
Figure 2-8
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.What is the opportunity cost of 100 dozen roses?
A)0.8 dozen orchids
B)5 dozen orchids
C)40 dozen orchids
D)80 dozen orchids
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.What is the opportunity cost of 100 dozen roses?
A)0.8 dozen orchids
B)5 dozen orchids
C)40 dozen orchids
D)80 dozen orchids
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
70
Table 2-3
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 50 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 50 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
71
Figure 2-8
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.Suppose Vidalia is currently producing 120 dozen roses per period.How many orchids is it also producing, assuming that resources are fully utilized?
A)20 dozen orchids
B)32 dozen orchids
C)44 dozen orchids
D)68 dozen orchids
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.Suppose Vidalia is currently producing 120 dozen roses per period.How many orchids is it also producing, assuming that resources are fully utilized?
A)20 dozen orchids
B)32 dozen orchids
C)44 dozen orchids
D)68 dozen orchids
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
72
Figure 2-8
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.Suppose Vidalia is currently producing 60 dozen orchids per period.How many roses is it also producing, assuming that resources are fully utilized?
A)40 dozen roses
B)50 dozen roses
C)60 dozen roses
D)100 dozen roses
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.Suppose Vidalia is currently producing 60 dozen orchids per period.How many roses is it also producing, assuming that resources are fully utilized?
A)40 dozen roses
B)50 dozen roses
C)60 dozen roses
D)100 dozen roses
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
73
Suppose your expenses for this term are as follows: tuition: $28,000, room and board: $9,000, books and other educational supplies: $2,500.Further, during the term, you can only work part-time and earn $16,000 instead of your full-time salary of $42,000.What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
A)$36,500
B)$56,500
C)$65,500
D)$72,500
A)$36,500
B)$56,500
C)$65,500
D)$72,500
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
74
Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books and other educational supplies: $1,500.Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000.What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
A)$13,500
B)$20,000
C)$24,000
D)$30,500
A)$13,500
B)$20,000
C)$24,000
D)$30,500
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
75
Table 2-3
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 100 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 100 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
76
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A)8 thousand wrenches
B)6 thousand hammers
C)30 thousand wrenches
D)23 thousand hammers
Refer to Figure 2-6.If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A)8 thousand wrenches
B)6 thousand hammers
C)30 thousand wrenches
D)23 thousand hammers
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
77
Figure 2-8
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.What is the opportunity cost of 80 dozen orchids?
A)0 roses
B)2.5 dozen roses
C)40 dozen roses
D)200 dozen roses
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
Refer to Figure 2-8.What is the opportunity cost of 80 dozen orchids?
A)0 roses
B)2.5 dozen roses
C)40 dozen roses
D)200 dozen roses
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
78
Table 2-3
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 120 sliders and 100 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Production Choices for Dina's Diner
Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 120 sliders and 100 hot wings would appear
A)along Dina's production possibilities frontier.
B)inside Dina's production possibilities frontier.
C)outside Dina's production possibilities frontier.
D)at the vertical intercept of Dina's production possibilities frontier.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
79
Figure 2-7
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume that in 2022, Apple temporarily shuts down one of its factories for an extensive renovation, and this reduces the amount of production capacity available for both types of vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from H to J in Graph B.
C)movement from K to L in Graph C.
D)movement from J to G in Graph B.
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Refer to Figure 2-7.Assume that in 2022, Apple temporarily shuts down one of its factories for an extensive renovation, and this reduces the amount of production capacity available for both types of vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from H to J in Graph B.
C)movement from K to L in Graph C.
D)movement from J to G in Graph B.
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
80
Figure 2-6
Refer to Figure 2-6.If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A)13 thousand hammers
B)10 thousand hammers
C)30 thousand wrenches
D)0 wrenches
Refer to Figure 2-6.If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A)13 thousand hammers
B)10 thousand hammers
C)30 thousand wrenches
D)0 wrenches
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
Unlock Deck
k this deck
Unlock Deck
Unlock for access to all 258 flashcards in this deck.
