Econ chap 3
Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, which of the following statements is correct?
Huey has abs adv in both potatoes and tomatoes.
Alice and Gene work in the mailroom, sorting and delivering mail. In order for them to benefit from specialization and trade, Alice must
have a comparative advantage in one task and gene must have a com adv in the other task
The saying "There's no such thing as a free lunch," applies
on the production possibilities frontier
A country has a comparative advantage in the production of a good if it can
produce the good at the lowest opp cost
The figure above shows a nation's production possibilities frontier. In the figure, point A shows
the maximum
Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the nation's production possibilities frontier?
the production possibilities frontier would shift inward
The figure above shows the production possibilities frontiers for the United Kingdom and France. If the United Kingdom and France specialize and engage in trade, the United Kingdom will produce ________ and France will produce ________.
fish; wheat
Economic growth depends upon which of the following? i. Improving the quality of labor ii. Technological advancement iii. Increasing the amount of capital
i, ii, and iii
When production efficiency does NOT occur, i. an economy is producing at a point within its PPF. ii. there are unemployed resources. iii. allocative efficiency can not occur.
i, ii, and iii
The figure shows the production possibility frontier for a country. What is the opportunity cost to move from point D to point B?
12 tons of rice
Deb and Pete have volunteered to help their favorite charity mail out fundraiser information. The figure shows their production possibilities frontiers for assembling packets and stuffing envelopes. If Deb and Pete specialize and trade, how many packets will be assembled?
160
Robinson Crusoe divides his time between catching fish and gathering fruit. Part of his production possibilities frontier is given in the above table. If Mr. Crusoe is on his PPF and he increases the amount of fruit he gathers from 56 to 90 pounds, the opportunity cost is
17
The figure 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
3 gallons
The 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?
3 tons
The figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?
500 bottles of wine
Hank requires 1 hour to cut the grass and 3 hours to clean the house. His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house. Which of the following statements is true?
Holly has a comp adv in cutting the grass
When all of the available factors of production are being efficiently employed, the
economy is producing at a point on its ppf
The table above shows a production possibilities frontier for an economy. If the economy tried to produce a combination of 250 loaves of bread and 800 books,
it cannot produce this combination because it lacks enough resources or technology.
The table above shows a nation's production possibilities frontier. If the nation wants to produce 4 robots and 34 pizzas
it will unable to do so
As an economy grows,
its ppl shifts outward
