Scarcity and Choice Quiz (3)
Suppose South Africa produces only trucks and camcorders. The resources that are used in the production of these two goods are specialized—that is, some inputs are more suitable for producing trucks than for producing camcorders, whereas others are more suitable for producing camcorders than trucks. The shape of South Africa's production possibilities frontier (PPF) should reflect the fact that as South Africa produces more camcorders and fewer trucks, the opportunity cost of producing each additional camcorder [ Select ] ["remains constant", "decreases", "increases"] . Based on the previous description, the tradeoff South Africa faces between producing camcorders and trucks is best represented by [ Select ] ["Graph 2", "Graph 1"] . On graphs 1 and 2, point A depicts a combination of trucks and camcorders that lies in the [ Select ] ["attainable", "unattainable"] region, and point B depicts a combination of trucks and camcorders that lies in the attainable region.
Answer 1: increases Answer 2: graph 2 Answer 3: unattainable Answer 4: unattainable
Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: Juanita makes $42 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. (Just enter the whole dollar number, no units and no cents)
Answer 1:Correct!42 Answer 2:Correct!144 Answer 3:Correct!63 Answer 4:Correct!148 Answer 5:Correct!105 Answer 6:Correct!181 (table, left to right)
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and steel. The black points (plus symbols) represent three possible output levels in a given month. Point A is at (500, 12); B is at (420, 16) and C is at (300, 20). Suppose the economy initially produces 12 million pieces of clothing and 500 million tons of steel, which is represented by point A. The opportunity cost of producing an additional 4 million pieces of clothing (that is, moving production to point B) is [ Select ] ["100 million", "60 million", "80 million", "120 million", "150 million"] tons of steel. Suppose, instead, that the economy currently produces 420 million tons of steel and 16 million pieces of clothing, which is represented by point B. Now the opportunity cost of producing an additional 4 million pieces of clothing (that is, moving to point C) is 120 million tons of steel. Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 4 million additional pieces of clothing at point B is [ Select ] ["less than", "equal to", "greater than"] the opportunity cost of 4 million additional pieces of clothing at point A. This reflects the [ Select ] ["notion that countries can gain from trade", "principle of increasing costs", "fact that resources are scarce"] .
Answer 1:Correct!80 million Answer 2:Correct!120 million Answer 3:Correct!greater than Answer 4:Correct!principle of increasing costs
Suppose South Africa produces only two goods: wheat and computers. The following graph shows South Africa's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. Point A: [ Select ] ["Inefficient", "", "", "Efficient"] [ Select ] ["Attainable", "Unattainable"] Point B: [ Select ] ["Inefficient", "Efficient"] [ Select ] ["Unattainable", "Attainable"] Point C: [ Select ] ["Efficient", "Inefficient"] [ Select ] ["Attainable", "Unattainable"] Point D: [ Select ] ["Neither", "Inefficient", "Efficient"] [ Select ] ["Attainable", "Unattainable"] Point E: [ Select ] ["Inefficient", "Efficient", "Neither"] [ Select ] ["Attainable", "Unattainable"] Point F: [ Select ] ["Efficient", "Inefficient"] [ Select ] ["Attainable", "Unattainable"]
Answer 1:Correct!Inefficient Answer 2:Correct!Attainable Answer 3:Correct!Efficient Answer 4:Correct!Attainable Answer 5:Correct!Efficient Answer 6:Correct!Attainable Answer 7:Correct!Neither Answer 8:Correct!Unattainable Answer 9:Correct!Neither Answer 10:Correct!Unattainable Answer 11:Correct!Inefficient Answer 12:Correct!Attainable
Citizens of Cappaconia love to wear fancy hats. Competing designers sell their hats online, where they can easily monitor the sales of their goods along with the prices they receive. This best exemplifies how a market system performs which coordination task required in the economy?
Which of the possible combinations of goods to produce