Tom Clancy excels at writing military novels. Which of the following movements show opportunity costs increasing? If the opportunity cost of a tape increases as the quantity of tapes produced increases and also the opportunity cost of a soda increases as the quantity of soda produced increases, then the PPF between the two goods will be:}, Increasing opportunity cost occurs along a production possibilities frontier because:}. What is the opportunity cost of one unit of Y when the production of good Y increases from 16 to 28 units? Assume that the production possibilities frontier is a straight line. The opportunity cost of producing more of:}, In the table, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. Suppose a country is at point a. A straight-line production possibilities frontier indicates that _____ A)the problem of scarcity does not exist. Homer could pick 100 pieces of fruit or catch 150 fish. Productive _______ and fully ______ resources are illustrated by a point on the PPF. For most goods, the opportunity costs _____ as more of a good is produced. The production possibilities frontier is the boundary between: A) those combinations of goods and services that can be produced and those that can be consumed. Any production point outside the production possibilities frontier: 10. A direct conclusion from this information is that, George and Michael can gain from exchange:}, To obtain the gains available from comparative advantage, individuals or countries must do more than specialize; they must also:}, By specialization and trade, two individuals can:}, Jane produces only corn and cloth. Refer to the table , which gives five points on a nation's PPF. Sue's opportunity cost of changing oil is ________ than Fred's and her opportunity cost for changing tires is ________ than Fred's:}, In one day, Sue can change the oil on 20 cars or the tires on 20 cars. Refer to the Graph. Which of the following causes the production possibilities frontier to have a bowed out, curvilinear shape? Why? With specialization and trade, Sweet Pansy produces ________ and Blue Violet produces ________:}. For the sake of simplicity we assume the relationship is linear. Point ________ represents an ________ point:}, 26. C. producer can produce more of both goods simultaneously. We know that Andy has a comparative advantage in the production of:}, In the table, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. The graph illustrates Mary's production possibilities frontier. Which of the following statements is TRUE? If Big Lobster's opportunity cost of preparing lobster exceeds H Salt's opportunity cost, then all the following are true EXCEPT ________:}, Suppose that the United States and Cuba decide to open up trade. Each produces 6 dishes of pasta and 4 pizzas. The PPF is a straight line when the resources used to produce the two products are perfectly interchangeable, and thus the opportunity cost of producing more units is constant. Which of the following is an example of a point that is unattainable? If each country specializes in the good in which it has a comparative advantage, ________ will gain from that trade because ________:}, The Graph shows Freda's PPF. Calculate Abe's, In the Graph, if the quantity of yogurt produced increases from 2 gallons an hour to 3 gallons an hour, the opportunity cost of a gallon of yogurt in terms of ice cream is:}, 208) Claire and Dag are farmers who produce beef and corn. A production possibility frontier that is a straight line sloping down from left to right suggests that: A) more of both goods could be produced moving along the frontier. Consider the PPF for milk and corn in the graph. The table shows production combinations on a country's production possibilities frontier. Figure 2. Homer and Teddy are stranded on a desert island. Which of the following is an example of a point that is inefficient? 29. Based on what you know about production possibilities frontier, which of the following production possibilities is not efficient? A drought reduces the amount of wheat produced and the economy produces at point b. For country B, the opportunity cost of producing an additional unit of X is:}, In the table, country B is producing 4 units of X and 6 units of Y. If currently no corn is being produced, what is the total opportunity cost of producing another 2 bushels of corn? Start studying Ch. 24. The above table shows production combinations on a country's production possibilities frontier. The possible combinations of two goods that can be produced in a certain period of time under the conditions of a given state of technology and fully employed resources. A production possibilities frontier is a straight line when a the more from ECON 2302 at Sam Houston State University For country B, the opportunity cost of producing an additional unit of Y is:}, Both Mergatroid and the Geebocks produce only gizmos and widgets. Currently the price of a purse is $40, and the cost of producing another purse is $50. If ________ pizzas are produced, the quantity of soda that people are willing to give up to get an additional pizza is more than the quantity of soda that they must give up to get that additional pizza:}, An economy that uses new technology ________:}, In March 2002, a factory used new technology to produce its output. 27. A production possibilities frontier is a straight line when Select one a the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. The opportunity cost of ________:}, As Rainclouds Inc. moves downward along its production possibilities frontier, illustrated in the Graph, the opportunity cost of a raincoat ________:}, Victor currently produces nuts and bolts at point a in the Graph. In one day, Christopher can either plow 14 acres or plant 14 acres. The table lists six points on the production possibilities frontier for grain and cars. The opportunity cost of increasing cheese production from 500 (tons of) cheese to 750 (tons of) cheese is:}. How can people can move beyond their production possibilities frontier? Suppose that, for given resources and production technology, the table is an accurate description of the production relationship between soda and pizza. B. an economy is interdependent and engaged in trade instead of self-sufficient. 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