Question 1

-The figure above shows a nation's production possibilities frontier for apples and oranges.
a.What combination of goods is represented by point A?
b.What combination of goods is represented by point B?
c.Which point represents an unattainable combination of goods?
d.The movement from point C to point D results in a free lunch.What is the free lunch?

Accepted Answer

a.3 million bushels of apples and 3 mill...

Question 2

-The figure above shows the production possibilities frontier for a country.If the economy is operating at point B,then the opportunity cost of another million gallons of milk is

Accepted Answer

A)  4 gallons of ice cream for a gallon of milk.
B)  3 gallons of ice cream for a gallon of milk.
C)  1 gallon of ice cream for a gallon of milk.
D)  1/3 of a gallon of ice cream for a gallon of milk.
E)  zero because after producing another million gallons of milk then zero gallons of ice cream are produced.F) A) and B)
G) A) and C)

Question 3

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point E to point D,what is the opportunity cost of a DVD?

Accepted Answer

A)  0.25 cell phones
B)  0.5 cell phones
C)  1 cell phone
D)  4 cell phones
E)  zeroF) A) and D)
G) B) and D)

Question 4

Which of the following best describes comparative advantage?

Accepted Answer

A)  being able to produce more output than any other country
B)  using the fewest number of resources to produce a given amount of output
C)  having the largest number of resources compared to other countries
D)  forgoing the fewest units of one product to produce a unit of another product
E)  It is the same as absolute advantage.F) All of the above
G) None of the above

Question 5

How is economic growth shown in a production possibilities frontier graph?

Accepted Answer

Economic growth is i...

Question 6

-The figure above shows a nation's production possibilities frontier.In the figure,point B shows

Accepted Answer

A)  an unattainable point.
B)  an attainable point.
C)  a point with a free lunch.
D)  a point with no trade off.
E)  a point at which there are unemployed resources.F) D) and E)
G) B) and C)

Question 7

The production possibilities frontier is the

Accepted Answer

A)  maximum output that can be produced at an opportunity cost of zero.
B)  minimum output that can be produced when resources are used inefficiently.
C)  boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced,given the available factors of production and the state of technology.
D)  boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing.
E)  maximum opportunity cost combinations of goods and services.F) None of the above
G) D) and E)

Question 8

The production possibilities frontier is a boundary that separates

Accepted Answer

A)  the combinations of goods that can be produced from the combinations of services.
B)  attainable combinations of goods and services that can be produced from unattainable ones.
C)  equitable combinations of goods and services that can be produced from inequitable ones.
D)  fair combinations of goods and services that can be consumed from unfair ones.
E)  affordable production points from unaffordable points.F) A) and B)
G) A) and C)

Question 9

If Country A can produce an extra plane by giving up two boats,and Country B can produce an extra plane by giving up three boats,then

Accepted Answer

A)  Country A has a comparative advantage over Country B in the production of planes.
B)  Country B has a comparative advantage over Country A in the production of planes.
C)  the two countries have no incentive to trade with one another.
D)  Country A would like to trade with B,but B cannot gain by trading with A.
E)  Country A has an absolute advantage in producing planes and a comparative advantage in producing boats.F) A) and E)
G) B) and D)

Question 10

Comparative advantage is directly related to which of the following concepts?

Accepted Answer

A)  productivity
B)  efficiency
C)  opportunity cost
D)  competition
E)  fairnessF) C) and E)
G) A) and B)

Question 11

The production possibilities frontier illustrates the

Accepted Answer

A)  maximum combinations of goods and services that can be produced.
B)  resources the economy possess,but not its level of technology.
C)  goods and services that people want.
D)  limits to people's wants.
E)  amount of each good that people want to buy.F) C) and D)
G) A) and C)

Question 12

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point E.What would be the opportunity cost to increase the production of wine to 9 thousand bottles?

Accepted Answer

A)  12 tons of rice
B)  15 thousand bottles of wine
C)  9 thousand bottles of wine
D)  3 tons of rice
E)  Nothing,it is a free lunch.F) B) and E)
G) A) and B)

Question 13

A movement from one point on a production possibilities frontier to another represents

Accepted Answer

A)  a tradeoff.
B)  a free lunch.
C)  full employment of labor but not capital.
D)  unemployment.
E)  an advance in technology.F) A) and E)
G) C) and D)

Question 14

If a nation devotes a larger share of its current production to consumption goods,then

Accepted Answer

A)  its economic growth will slow down.
B)  its PPF will shift outward.
C)  its PPF will shift inward.
D)  some productive factors will become unemployed.
E)  it must produce at a point within its PPF.F) A) and C)
G) C) and E)

Question 15

Explain why specialization and trade increases a country's overall level of consumption.

Accepted Answer

A country specializes in the activities ...

Question 16

The United States produced approximately ________ worth of goods and services in 2011.

Accepted Answer

A)  $15 trillion
B)  $15 billion
C)  $150 trillion
D)  $150 billion
E)  $1,500 trillionF) C) and D)
G) B) and C)

Question 17

Are all points inside the production possibilities frontier unattainable?

Accepted Answer

No,all points within the produ...

Question 18

Moving between two points on a PPF,a country gains 6 automobiles and forgoes 3 trucks.The opportunity cost of 1 automobile is

Accepted Answer

A)  3 trucks.
B)  6 automobiles - 3 trucks.
C)  2 trucks.
D)  1/2 of a truck.
E)  1 automobile.F) A) and E)
G) B) and E)

Question 19

As we move along the production possibilities frontier,

Accepted Answer

A)  the production of one good increases as the production of the other good decreases.
B)  the possibilities of tradeoffs diminish.
C)  a tradeoff is not possible because nations need all goods.
D)  more of both goods can be produced.
E)  less of both goods can be produced.F) C) and D)
G) A) and D)

Question 20

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from ________ is greater for ________.

Accepted Answer

A)  point A to point B;Anaconda
B)  point B to point A;Bear
C)  point D to point E;Bear
D)  point E to point D;Bear
E)  any point to any other point;BearF) B) and D)
G) B) and C)

Exam 3: The Economic Problem

A movement from one point on a production possibilities frontier to another represents

Correct Answer
verified

Are all points inside the production possibilities frontier unattainable?

Correct Answer
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No,all points within the produ...
View Answer

-The figure above shows a nation's production possibilities frontier.In the figure,point B shows

Correct Answer
verified

The production possibilities frontier illustrates the

Correct Answer
verified

If a nation devotes a larger share of its current production to consumption goods,then

Correct Answer
verified

As we move along the production possibilities frontier,

Correct Answer
verified

The United States produced approximately ________ worth of goods and services in 2011.

Correct Answer
verified

Correct Answer
verified
a.3 million bushels of apples and 3 mill...
View Answer

The production possibilities frontier is a boundary that separates

Correct Answer
verified

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point E.What would be the opportunity cost to increase the production of wine to 9 thousand bottles?

Correct Answer
verified

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from is greater for .

Correct Answer
verified

Which of the following best describes comparative advantage?

Correct Answer
verified

If Country A can produce an extra plane by giving up two boats,and Country B can produce an extra plane by giving up three boats,then

Correct Answer
verified

Explain why specialization and trade increases a country's overall level of consumption.

Correct Answer
verified
A country specializes in the activities ...
View Answer

-The figure above shows the production possibilities frontier for a country.If the economy is operating at point B,then the opportunity cost of another million gallons of milk is

Correct Answer
verified

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point E to point D,what is the opportunity cost of a DVD?

Correct Answer
verified

Moving between two points on a PPF,a country gains 6 automobiles and forgoes 3 trucks.The opportunity cost of 1 automobile is

Correct Answer
verified

Comparative advantage is directly related to which of the following concepts?

Correct Answer
verified

The production possibilities frontier is the

Correct Answer
verified

How is economic growth shown in a production possibilities frontier graph?

Correct Answer
verified
Economic growth is i...
View Answer

Exam 3: The Economic Problem

A movement from one point on a production possibilities frontier to another represents

Correct AnswerverifiedShow Answer

Are all points inside the production possibilities frontier unattainable?

Correct AnswerverifiedNo,all points within the produ...View AnswerShow Answer

-The figure above shows a nation's production possibilities frontier.In the figure,point B shows

Correct AnswerverifiedShow Answer

The production possibilities frontier illustrates the

Correct AnswerverifiedShow Answer

If a nation devotes a larger share of its current production to consumption goods,then

Correct AnswerverifiedShow Answer

As we move along the production possibilities frontier,

Correct AnswerverifiedShow Answer

The United States produced approximately ________ worth of goods and services in 2011.

Correct AnswerverifiedShow Answer

Correct Answerverifieda.3 million bushels of apples and 3 mill...View AnswerShow Answer

The production possibilities frontier is a boundary that separates

Correct AnswerverifiedShow Answer

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point E.What would be the opportunity cost to increase the production of wine to 9 thousand bottles?

Correct AnswerverifiedShow Answer

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from ________ is greater for ________.

Correct AnswerverifiedShow Answer

Which of the following best describes comparative advantage?

Correct AnswerverifiedShow Answer

If Country A can produce an extra plane by giving up two boats,and Country B can produce an extra plane by giving up three boats,then

Correct AnswerverifiedShow Answer

Explain why specialization and trade increases a country's overall level of consumption.

Correct AnswerverifiedA country specializes in the activities ...View AnswerShow Answer

-The figure above shows the production possibilities frontier for a country.If the economy is operating at point B,then the opportunity cost of another million gallons of milk is

Correct AnswerverifiedShow Answer

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point E to point D,what is the opportunity cost of a DVD?

Correct AnswerverifiedShow Answer

Moving between two points on a PPF,a country gains 6 automobiles and forgoes 3 trucks.The opportunity cost of 1 automobile is

Correct AnswerverifiedShow Answer

Comparative advantage is directly related to which of the following concepts?

Correct AnswerverifiedShow Answer

The production possibilities frontier is the

Correct AnswerverifiedShow Answer

How is economic growth shown in a production possibilities frontier graph?

Correct AnswerverifiedEconomic growth is i...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
No,all points within the produ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
a.3 million bushels of apples and 3 mill...
View Answer

Correct Answer
verified

Correct Answer
verified

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from is greater for .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A country specializes in the activities ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Economic growth is i...
View Answer