Economy Chapter 3 quiz

Which of the following combinations of cheese and wine could France produce in 40 hours

6 units of cheese and 5 units of wine

Consider two individuals — Howard and Mai — each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases?

Howard is very good at knitting sweaters and at cooking tasty food, but Mai's skills in both of these activities are very poor

The most obvious benefit of specialization and trade is that they allow us to

consume more goods than we otherwise would be able to consume

Suppose there are only two people in the world. Each person's production possibilities frontier also represents his or her consumption possibilities when

they choose not to trade with one another

An economy's production possibilities frontier is also its consumption possibilities frontier

when the economy is self sufficient

A production possibility frontier is bowed outward when

the rate of tradeoff between the two goods being produced depends on how much of each good is being produced

A production possibility frontier is a straight line when

the rate of tradeoff between two goods being produced is constant

Assume that England and France each has 40 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is

24 units of cheese and 15 units of wine

Which of the following combinations of cheese and wine could England not produce in 40 hours

26 units of cheese and 4 units of wine

Consider two individuals — Marquis and Serena — each of whom would like to wear sweaters and eat tasty food. The gains from trade between Marquis and Serena are most obvious in which of the following cases?

Marquis's skills are such that he can produce only sweaters, and Serena's skills are such that she can produce only taste food

For a self-sufficient producer, the production possibilities frontier

is the same as the consumption possibilities frontier

A professor spends 10 hours per day giving lectures and writing papers. For the professor, a graph that shows his various possible mixes of output (lectures given per day and papers written per day) is called his

production possibilities frontier

As a student, Anne spends 40 hours per week writing term papers and completing homework assignments. On one axis of her production possibilities frontier is measured the number of term papers written per week. On the other axis is measured the number of homework assignments completed per week. Anne's production possibilities frontier is a straight line if

she can switch between writing term papers and completing homework assignments at a constant rate

The production possibility frontier illustrates

the combinations of output that an economy can produce