Handout 2

33. Azerbaijan's opportunity cost of one NAIL is a. 1/4 bolt and Uzbekistan's is 1/2 bolt. b. 1/4 bolt and Uzbekistan's is 2 bolts. c. 4 bolts and Uzbekistan's is 1/2 bolt. d. 4 bolts and Uzbekistan's is 2 bolts.

a. 1/4 bolt and Uzbekistan opportunity cost of one nail is 1/2 bolt.

28. Minutes to make: 1 Bushel of Wheat Andrea: 30 Paul: 15 1 Pound of Beef Andrea: 15 Paul: 5 Refer to Table 4. Which of the following combinations of wheat and beef could Paul NOT produce in one 8-hour day? a. 13 bushels of wheat and 60 pounds of beef b. 20 bushels of wheat and 30 pounds of beef c. 20 bushels of wheat and 20 pounds of beef d. 25 bushels of wheat and 15 pounds of beef

a. 13 bushels of wheat and 60 pounds of beef

38. Refer to Figure 2. If Dina must work 0.25 hour to produce each taco, then her production possibilities frontier is based on how many hours of work? a. 40 hours b. 100 hours c. 400 hours d. 1600 hours

B) 100 hours

production possibilities frontier

a curve that outlines all possible combinations of total output that could be produced

26. Minutes to make: 1 Bushel of Wheat Andrea: 30 Paul: 15 1 Pound of Beef Andrea: 15 Paul: 5 Refer to Table 4. Assume that Andrea and Paul each has 480 minutes available. If each person divides his time equally between the production of wheat and beef, then total production is a. 24 bushels of wheat and 64 pounds of beef. b. 21 bushels of wheat and 33 pounds of beef. c. 16 bushels of wheat and 48 pounds of beef. d. 5 bushels of wheat and 24 pounds of beef.

a. 24 bushels of wheat and 64 pounds of beef.

37. if each country switched from dividing its time equally between production of bolts and nails to each country spending all of its time on the good in which it has a comparative advantage, then total production will increase by a. 5 bolts and 10 nails. b. 15 bolts and 40 nails. c. 20 bolts and 50 nails. d. 30 bolts and 80 nails.

a. 5 bolts and 10 nails.

14. Refer to Figure 1. It is possible for this economy to produce a. 60 dryers and 50 washers. b. 60 dryers and 60 washers. c. 80 dryers and 50 washers. d. All of the above.

a. 60 dryers and 50 washers.

18. Refer to Figure 1. Efficient production is represented by which point(s)? a. A, B b. A, B, D c. A, B, C d. C

a. A, B

19. Refer to Table 1. Assume that John and Jane each work 24 hours. What happens to total production if instead of each person spending 12 hours producing each good, Jane spends 21 hours producing wine and 3 hours producing bread and John spends 3 hours producing wine and 21 hours producing bread? a. The total production of bread and wine each rise. b. The total production of bread rises and the total production of wine falls. c. The total production of bread falls and the total production of wine rises. d. The total production of bread and wine each fall.

a. The total production of bread and wine each rise.

35. Uzbekistan has a comparative advantage in a. bolts . b. nails. c. both d. neither

a. bolts

25. Refer to Table 3. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for France. If we were to do this, measuring wine along the horizontal axis, then a. the slope of England's production possibilities frontier would be -4 and the slope of France's production possibilities frontier would be -0.4. b. the slope of England's production possibilities frontier would be -0.25 and the slope of France's production possibilities frontier would be -2.5. c. the slope of England's production possibilities frontier would be 0.25 and the slope of France's production possibilities frontier would be 2.5. d. the slope of England's production possibilities frontier would be 4 and the slope of France's production possibilities frontier would be 0.4.

a. the slope of England's production possibilities frontier would be -4 and the slope of France's production possibilities frontier would be -0.4.

30. Refer to Table 6. Assume that Japan and Korea each has 2400 hours available. If each country divides its time equally between the production of cars and airplanes, then total production is a. 40 cars and 8 airplanes. b. 64 cars and 16 airplanes. c. 80 cars and 16 airplanes. d. 128 cars and 32 airplanes.

b. 64 cars and 16 airplanes.

32. Refer to Table 6. We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea. If we were to do this, measuring AIRPLANES along the horizontal axis, then a. the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3. b. the slope of Japan's production possibilities frontier would be -0.2 and the slope of Korea's production possibilities frontier would be -0.33. c. the slope of Japan's production possibilities frontier would be 0.2 and the slope of Korea's production possibilities frontier would be 0.33. d. the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

a. the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3.

39. Refer to Figure 2. If the production possibilities frontier shown for Arturo is for 100 hours of production, then how long does it take Arturo to make one burrito? a. 1/4 hour b. 1/3 hour c. 3 hours d. 4 hours

b. 1/3 hour

21. Refer to Table 3. 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 a. 8 units of cheese and 10 units of wine b. 24 units of cheese and 15 units of wine c. 40 units of cheese and 20 units of wine d. 48 units of cheese and 30 units of wine

b. 24 units of cheese and 15 units of wine

41. Refer to Figure 2. If Arturo and Dina each divides his/her time equally between the production of tacos and burritos, then total production is a. 200 tacos and 150 burritos. b. 400 tacos and 250 burritos. c. 400 tacos and 300 burritos. d. 800 tacos and 500 burritos.

b. 400 tacos and 250 burritos.

36. Azerbaijan has a comparative advantage in of a. bolts . b. nails. c. both d. neither

b. nails

24. Refer to Table 3. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for France. If we were to do this, measuring cheese along the horizontal axis, then a. the slope of England's production possibilities frontier would be -4 and the slope of France's production possibilities frontier would be -0.4. b. the slope of England's production possibilities frontier would be -0.25 and the slope of France's production possibilities frontier would be -2.5. c. the slope of England's production possibilities frontier would be 0.25 and the slope of France's production possibilities frontier would be 2.5. d. the slope of England's production possibilities frontier would be 4 and the slope of France's production possibilities frontier would be 0.4.

b. the slope of England's production possibilities frontier would be -0.25 and the slope of France's production possibilities frontier would be -2.5.

20. Refer to Table 2. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Holland. If we were to do this, measuring milk along the horizontal axis, then a. the slope of England's production possibilities frontier would be -10/4 and the slope of Holland's production possibilities frontier would be -4/3. b. the slope of England's production possibilities frontier would be -4/10 and the slope of Holland's production possibilities frontier would be -3/4. c. the slope of England's production possibilities frontier would be 10/4 and the slope of Holland's production possibilities frontier would be 4/3. d. the slope of England's production possibilities frontier would be 4/10 and the slope of Holland's production possibilities frontier would be 3/4.

b. the slope of England's production possibilities frontier would be -4/10 and the slope of Holland's production possibilities frontier would be -3/4.

31. Refer to Table 6. We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea. If we were to do this, measuring CARS along the horizontal axis, then a. the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3. b. the slope of Japan's production possibilities frontier would be -0.2 and the slope of Korea's production possibilities frontier would be -0.33. c. the slope of Japan's production possibilities frontier would be 0.2 and the slope of Korea's production possibilities frontier would be 0.33. d. the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

b. the slope of Japan's production possibilities frontier would be -0.2 and the slope of Korea's production possibilities frontier would be -0.33.

22. Refer to Table 3. Which of the following combinations of cheese and wine could France produce in 40 hours? a. 2 units of cheese and 20 units of wine b. 4 units of cheese and 15 units of wine c. 6 units of cheese and 5 units of wine d. 8 units of cheese and 20 units of wine

c) 6 units of cheese and 5 units of wine

29. Refer to Table 5. Which of the following represents Aruba's production possibilities frontier when 100 labor hours are available?

c. 20 radios, 50 coolers

27. Minutes to make: 1 Bushel of Wheat Andrea: 30 Paul: 15 1 Pound of Beef Andrea: 15 Paul: 5 Refer to Table 4. Which of the following combinations of wheat and beef could Andrea produce in one 8-hour day? a. 16 bushels of wheat and 32 pounds of beef b. 9 bushels of wheat and 25 pounds of beef c. 7 bushels of wheat and 15 pounds of beef d. 10 bushels of wheat and 13 pounds of beef

c. 7 bushels of wheat and 15 pounds of beef

13. Refer to Figure 1. If this economy devotes all of its resources to the production of dryers, then it will produce a. 0 dryers and 100 washers. b. 60 dryers and 50 washers. c. 80 dryers and 0 washers. d. 80 dryers and 50 washers.

c. 80 dryers and 0 washers.

40. Refer to Figure 2. If Arturo and Dina both spend all of their time producing tacos, then total production is a. 400 tacos and 0 burritos. b. 400 tacos and 250 burritos. c. 800 tacos and 0 burritos. d. 800 tacos and 500 burritos.

c. 800 tacos and 0 burritos.

15. Refer to Figure 1. It is not possible for this economy to produce at point a. A b. B c. C d. D

c. C

17. Refer to Figure 1. Suppose this economy is producing at point D. Which of the following statements would best explain this situation? a. The economy has insufficient resources to produce at a more desirable point. b. The economy's available technology prevents it from producing at a more desirable point. c. There is widespread unemployment in the economy. d. Any of the above statements would be a legitimate explanation for this situation.

c. There is widespread unemployment in the economy.

16. Refer to Figure 1. This economy cannot currently produce 70 washers and 70 dryers because a. it is not using all of its resources. b. it is not using the most efficient production process. c. it does not have the resources and technology to produce that level of output. d. All of the above are correct.

c. it does not have the resources and technology to produce that level of output

23. Refer to Table 3. Which of the following combinations of cheese and wine could England NOT produce in 40 hours? a. 12 units of cheese and 7 units of wine b. 16 units of cheese and 6 units of wine c. 20 units of cheese and 5 units of wine d. 26 units of cheese and 4 units of wine

d) 26 units of cheese and 4 units of wine

34. Azerbaijan's opportunity cost of one BOLT is a. 1/4 nail and Uzbekistan's is 1/2 nail. b. 1/4 nail and Uzbekistan's is 2 nails. c. 4 nails and Uzbekistan's is 1/2 nail. d. 4 nails and Uzbekistan's is 2 nails.

d. 4 nails and Uzbekistan's is 2 nails.

Macroeconomics

the study of economy-wide phenomena, including inflation, unemployment, and economic growth

Microeconomics

the study of how households and firms make decisions and how they interact in markets