Topic2

Refer to the figure below. The opportunity cost of increasing medical care from 200 to 400 units is ______ the opportunity cost of increasing medical care from 400 to 600 units. Graph of warheads versus units of medical care. There is a negative curve from 1125 warheads to 640 units of medical care. Point c lies on the line at 800 warheads and 500 units of medical care. Select one: a. greater than b. less than c. exactly the same as d. twice as much as

less than

Refer to the figure below. If this restaurant makes 75 salads in one hour, then what's the maximum number of pizzas it can make in that same hour? Graph of Salads per hour versus pizzas per hour. As pizzas increase, salad decrease, creating a negative curve. Point B lies on the line at 75 salads per hour and 30 pizzas per hour. Point c lies on the line at 50 salads per hour and 35 pizzas per hour. Select one: a. 0 b. 10 c. 20 d. 30

30

Refer to the figure below. If this economy is currently producing at point C, then the opportunity cost of providing 100 additional units of medical care would be: Graph of warheads versus units of medical care. There is a negative curve from 1125 warheads to 640 units of medical care. Point c lies on the line at 800 warheads and 500 units of medical care. Select one: a. 800 warheads. b. 400 warheads. c. 200 warheads. d. 100 warheads.

400 warheads.

Refer to the figure below. For Pat, the opportunity cost of removing one bag of trash is planting: Graph of bulbs planted per hour versus bags of trash removed per hour. There is a negative slope from 100 bulbs to 20 bags. Select one: a. 100 bulbs. b. 5 bulbs. c. 1/100 of a bulb. d. 1/5 of a bulb.

5 bulbs

Refer to the figure below. If Pat and Chris were to specialize in the task in which each has a comparative advantage: Select one: a. Chris would plant bulbs and Pat would remove trash. b. Chris would remove trash and Pat would plant bulbs. c. Pat and Chris would each spend half of their time each task. d. both Pat and Chris would plant bulbs because they both have an absolute advantage in that task.

Chris would remove trash and Pat would plant bulbs.

Refer to the table below. ______ has the comparative advantage in making pizza, and ______ has the comparative advantage in delivering pizza. Select one: a. Corey; Corey b. Pat; Pat c. Pat; Corey d. Corey; Pat

Corey; Pat

According to the textbook, NAFTA was expected to help which country exploit its comparative advantage in the production of goods made by unskilled labor? Select one: a. Canada b. Cuba c. Mexico d. The U.S.A.

Mexico

Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown below. Both of Moe's professors require at least a 65 to pass and a 90 to earn an A. Which of the following is true? Select one: a. Moe can pass both classes. b. Moe can pass economics, but only if he fails physics. c. Moe can pass physics, but only if he fails economics. d. Moe could earn an A in economics and still pass physics.

Moe can pass both classes.

The downward slope of the production possibilities curve illustrates the: Select one: a. Scarcity Principle. b. Cost-Benefit Principle. c. Incentive Principle. d. Principle of Comparative Advantage.

Scarcity Principle.

If country A can produce more of practically everything than can country B, then which of the following statements is true? Select one: a. Country A has no incentive to trade with country B. b. Country B cannot have a comparative advantage in the production of any good that country A wants to buy. c. Trade can benefit both countries. d. Country B has no incentive to trade with country A.

Trade can benefit both countries.

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Graph of dresses per day versus skirts per day. There is a negative slope from 4 dresses per day to 20 skirts per day. Point W lies at 4 dresses per day and point V lies at 20 skirts per day. Point U lies above the line at 2.5 dresses per day and 15 skirts per day. W, X, Y, Z, and V are the only points on the line. Of the labeled points, only ______ are attainable. Select one: a. T and U b. X, Y, and Z c. W, X, Y, Z, and V d. W, X, Y, Z, V, and T

W, X, Y, Z, V, and T

Refer to the table below. According to the table, Julia has the absolute advantage in: Time to Make a Pie Time to Make a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes Select one: a. pies. b. neither pies nor cakes. c. cakes. d. both pies and cakes.

both pies and cakes.

The benefits to specialization are even greater when two trading partners have: Select one: a. absolute advantages in producing the same goods. b. similar consumption preferences. c. very similar opportunity costs. d. large differences in opportunity costs.

large differences in opportunity costs.

The benefits of specialization can be used to explain why: Select one: a. workers prefer to work on a variety of tasks during the day. b. machines are more productive than human workers. c. individuals and nations benefit from trade. d. big companies take advantage of smaller ones.

individuals and nations benefit from trade.

Points that lie below the production possibilities curve are inefficient because: Select one: a. more of one good could be produced without producing less of the other. b. producing more of one good means producing less of the other. c. producers face scarcity. d. too many goods are being produced.

more of one good could be produced without producing less of the other.

On a graph of a production possibilities curve, an inefficient point is: Select one: a. necessarily an attainable point. b. not necessarily an attainable point. c. necessarily an unattainable point. d. possibly an unattainable point.

necessarily an attainable point.

One reason there is political opposition to international trade is that: Select one: a. the potential gains from specialization and trade are small. b. trade does not increase the total value of goods and services produced by a nation. c. the differences in opportunity costs between countries are small. d. not everyone benefits from trade.

not everyone benefits from trade.

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. Picture If Smith and Jones are dividing their time efficiently and producing more than 10 computers and fewer than 120 calculators per hour, then Smith will ______ and Jones will ______. Select one: a. produce only computers; produce only calculators b. produce only computers; split his time between computers and calculators c. split his time between computers and calculators; produce only computers d. produce only calculators; produce only computers

produce only computers; split his time between computers and calculators

Refer to the figure below. For the nation whose PPC is shown, it must be true that: Graph of movies (number per year) versus milk (gallons per year). There is a negative curve. Select one: a. the nation's productive resources are better-suited to making milk than to making movies. b. the nation's productive resources are better-suited to making movies than to making milk. c. some of the nation's productive resources are better-suited to making milk, and some are better-suited to making movies. d. the nation has a comparative advantage in making milk.

some of the nation's productive resources are better-suited to making milk, and some are better-suited to making movies.

Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown below. Moe needs to earn at least an 80 in both economics and physics to keep his scholarship. Given his current PPC, an 80 in both classes is ______. a. unattainable b. attainable c. efficient d. inefficient

unattainable