Question 1

As a student,Anne spends 40 hours per week writing term papers and completing homework assignments.On one axis of her production possibilities frontier is measured the number of term papers written per week.On the other axis is measured the number of homework assignments completed per week.Anne's production possibilities frontier is a straight line if

A) she faces no trade-off between writing term papers and completing homework assignments.
B) she can switch between writing term papers and completing homework assignments at a constant rate.
C) the rate at which she can switch between homework assignments and term papers depends on the number of homework assignments she is completing and on the number of term papers she is writing.
D) she is required by her professors to spend half of her time on term papers and the other half of her time on homework assignments.

Accepted Answer

A straight line production possibilities frontier implies that the rate at which Anne can switch between writing term papers and completing homework assignments is constant. This means that she can allocate her time and resources between the two activities in a fixed ratio, without encountering any diminishing returns or increasing opportunity costs. Option A is incorrect because there is always a trade-off between different activities when resources are limited. Option C is incorrect because the rate of switching varies based on the initial allocation of resources. Option D is incorrect because the requirement of spending half of the time on each activity does not necessarily imply a straight line production possibilities frontier.

Question 2

Consider two individuals - Marquis and Serena - each of whom would like to wear sweaters and eat tasty food.The gains from trade between Marquis and Serena are most obvious in which of the following cases?

A) Marquis is very good at knitting sweaters and at cooking tasty food, but Serena's skills in both of these activities are very poor.
B) Marquis and Serena both are very good at cooking tasty food, but neither has the necessary skills to knit a sweater.
C) Marquis's cooking and knitting skills are very poor, and Serena's cooking and knitting skills are also very poor.
D) Marquis's skills are such that he can produce only sweaters, and Serena's skills are such that she can produce only tasty food.

Accepted Answer

D

Question 3

A production possibilities frontier is a straight line when&#10;A) the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.&#10;B) an economy is interdependent and engaged in trade instead of self-sufficient.&#10;C) the rate of tradeoff between the two goods being produced is constant.&#10;D) the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.

Accepted Answer

A straight-line production possibilities frontier indicates a constant opportunity cost, which means the rate of tradeoff between the two goods being produced is constant. This means that producing one more unit of a good always requires giving up the same amount of the other good.

Question 4

A certain cowboy spends 10 hours per day mending fences and herding cattle.For the cowboy,a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day)is called his

A) line of tastes.
B) trade-off curve.
C) production possibilities frontier.
D) consumption possibilities frontier.

Accepted Answer

The graph that shows the various possible mixes of output for the cowboy (fences mended per day and cattle herded per day) is known as his production possibilities frontier (PPF) because it illustrates the maximum amount of output that can be obtained by him given his limited resources (i.e. 10 hours per day). The PPF shows the trade-offs between the two outputs, indicating that increasing one output will lead to a decrease in the other output, illustrating the concept of opportunity cost. Therefore, the best choice is C.

Question 5

A production possibilities frontier is bowed outward when&#10;A) the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.&#10;B) an economy is self-sufficient instead of interdependent and engaged in trade.&#10;C) the rate of tradeoff between the two goods being produced is constant.&#10;D) the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.

Accepted Answer

The production possibilities frontier (PPF) is bowed outward when the opportunity cost of producing one good increases as more of it is produced, which means the rate of trade-off between the two goods depends on the quantities being produced. This reflects increasing opportunity costs.

Question 6

People who provide you with goods and services&#10;A) are acting out of generosity.&#10;B) do so because they get something in return.&#10;C) have chosen not to become interdependent.&#10;D) are required to do so by the government.

Accepted Answer

People who provide goods and services do so because they receive something in return, usually money or another form of compensation. This is the basic principle of trade and commerce, where people offer their skills, products or services in exchange for something they need or want.

Question 7

Suppose there are only two people in the world.Each person's production possibilities frontier also represents his or her consumption possibilities when&#10;A) neither person faces trade-offs.&#10;B) the frontiers are straight lines.&#10;C) the frontiers are bowed out.&#10;D) they choose not to trade with one another.

Accepted Answer

If they choose not to trade with one another, their production and consumption possibilities will be limited to what they can produce on their own, represented by their individual production possibilities frontiers. Trade enables individuals to consume beyond their production possibilities frontiers, but since there are only two individuals in this scenario, there is no opportunity for trade. Therefore, the best choice is D.

Question 8

Which of the following is not a reason people choose to depend on others for goods and services?&#10;A) to improve their lives&#10;B) to allow them to enjoy a greater variety of goods and services&#10;C) to consume more of each good without working any more hours&#10;D) to allow people to produce outside their production possibilities frontiers

Accepted Answer

Depending on others for goods and services cannot allow people to produce outside their production possibilities frontiers. This option does not make sense and is not a valid reason for choosing to depend on others. The other options (A, B, and C) are valid reasons why people choose to depend on others for goods and services.

Question 9

When an economist points out that you and millions of other people are interdependent,he or she is referring to the fact that we all&#10;A) rely upon the government to provide us with the basic necessities of life.&#10;B) rely upon one another for the goods and services we consume.&#10;C) have similar tastes and abilities.&#10;D) are concerned about one another's well-being.

Accepted Answer

An economist pointing out interdependence is highlighting that we all rely on each other for goods and services. No one person can produce all the goods and services they need themselves, so we must rely on others to provide what we need. This is the foundation of a market economy.

Question 10

Regan grows flowers and makes ceramic vases.Jayson also grows flowers and makes ceramic vases,but Regan is better at producing both goods.In this case,trade could&#10;A) benefit both Jayson and Regan.&#10;B) benefit Jayson, but not Regan.&#10;C) benefit Regan, but not Jayson.&#10;D) benefit neither Jayson nor Regan.

Accepted Answer

Since Regan is better at producing both goods, she has a comparative advantage in both activities. This means that she can produce both goods at a lower opportunity cost than Jayson. Therefore, they can both benefit from trade. For example, Regan can specialize in flower production, while Jayson can specialize in vase production. By trading, they can both obtain more of both goods than they would have been able to produce on their own.

Question 11

An economy's production possibilities frontier is also its consumption possibilities frontier&#10;A) under all circumstances.&#10;B) under no circumstances.&#10;C) when the economy is self-sufficient.&#10;D) when the rate of tradeoff between the two goods being produced is constant.

Accepted Answer

The answer of An economy's production possibilities frontier is also...

Question 12

The production possibilities frontier illustrates&#10;A) the combinations of output that an economy should produce.&#10;B) the combinations of output that an economy should consume.&#10;C) the combinations of output that an economy can produce.&#10;D) All of the above are correct.

Accepted Answer

The answer of The production possibilities frontier illustrates&#10;A) the combinations...

Question 13

Table 3-1&#10;Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.&#10;  &#10;Refer to Table 3-1.Which of the following combinations of wheat and beef could Andia produce in one 8-hour day?&#10;A) 6 bushels of wheat and 35 pounds of beef&#10;B) 9 bushels of wheat and 25 pounds of beef&#10;C) 15 bushels of wheat and 20 pounds of beef&#10;D) 24 bushels of wheat and 40 pounds of beef

Accepted Answer

The answer of Table 3-1&#10;Assume that Andia and Zardia can...

Question 14

When can two countries gain from trading two goods?&#10;A) when the first country can only produce the first good and the second country can only produce the second good&#10;B) when the first country can produce both goods, but can only produce the second good at great cost, and the second country can produce both goods, but can only produce the first good at great cost&#10;C) when the first country is better at producing both goods and the second country is worse at producing both goods&#10;D) Two countries could gain from trading two goods under all of the above conditions.

Accepted Answer

The answer of When can two countries gain from trading...

Question 15

Ben bakes bread and Shawna knits sweaters.Ben and Shawna both like to eat bread and wear sweaters.In which of the following cases is it impossible for both Ben and Shawna to benefit from trade?&#10;A) Ben cannot knit sweaters and Shawna cannot bake bread.&#10;B) Ben is better than Shawna at baking bread and Shawna is better than Ben at knitting sweaters.&#10;C) Ben is better than Shawna at baking bread and at knitting sweaters.&#10;D) Both Ben and Shawna can benefit from trade in all of the above cases.

Accepted Answer

The answer of Ben bakes bread and Shawna knits sweaters.Ben...

Question 16

Pocoyo bakes cookies and Pato grows vegetables.In which of the following cases is it impossible for both Pocoyo and Pato to benefit from trade?&#10;A) Pocoyo does not like vegetables and Pato does not like cookies.&#10;B) Pocoyo is better than Pato at baking cookies and Pato is better than Pocoyo at growing vegetables.&#10;C) Pato is better than Pocoyo at baking cookies and at growing vegetables.&#10;D) Both Pocoyo and Pato can benefit from trade in all of the above cases.

Accepted Answer

The answer of Pocoyo bakes cookies and Pato grows vegetables.In...

Question 17

Consider two individuals - Howard and Mai - each of whom would like to wear sweaters and eat tasty food.The gains from trade between Howard and Mai are least obvious in which of the following cases?&#10;A) Howard is very good at knitting sweaters and at cooking tasty food, but Mai's skills in both of these activities are very poor.&#10;B) Howard is very good at knitting sweaters and at cooking tasty food; Mai is very good at knitting sweaters, but she knows nothing about cooking tasty food.&#10;C) Howard's skills in knitting sweaters are fairly good, but his skills in cooking tasty food are fairly bad; Mai's skills in knitting sweaters are fairly bad, but her skills in cooking tasty food are fairly good.&#10;D) Howard's skills are such that he can produce only sweaters, and Mai's skills are such that she can produce only tasty food.

Accepted Answer

The answer of Consider two individuals - Howard and Mai...

Question 18

Table 3-1&#10;Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.&#10;  &#10;Refer to Table 3-1.Assume that Andia and Zardia each has 360 minutes available.If each person divides his time equally between the production of wheat and beef,then total production is&#10;A) 10.5 bushels of wheat and 16.5 pounds of beef.&#10;B) 21 bushels of wheat and 33 pounds of beef.&#10;C) 35 bushels of wheat and 22 pounds of beef.&#10;D) 42 bushels of wheat and 66 pounds of beef.

Accepted Answer

The answer of Table 3-1&#10;Assume that Andia and Zardia can...

Question 19

The most obvious benefit of specialization and trade is that they allow us to&#10;A) work more hours per week than we otherwise would be able to work.&#10;B) consume more goods than we otherwise would be able to consume.&#10;C) spend more money on goods that are beneficial to society, and less money on goods that are harmful to society.&#10;D) consume more goods by forcing people in other countries to consume fewer goods.

Accepted Answer

The answer of The most obvious benefit of specialization and...

Question 20

For a self-sufficient producer,the production possibilities frontier&#10;A) is the same as the consumption possibilities frontier.&#10;B) is greater than the consumption possibilities frontier.&#10;C) is less than the consumption possibilities frontier.&#10;D) is always a straight line.

Accepted Answer

The answer of For a self-sufficient producer,the production possibilities frontier&#10;A)...

Question 21

Table 3-6&#10;Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.&#10;  &#10;Refer to Table 3-6.Which of the following combinations of mixers and toasters could Maya produce in 40 hours?&#10;A) 1 mixers and 7 toasters.&#10;B) 2 mixers and 5 toasters.&#10;C) 2.5 mixers and 4 toasters.&#10;D) 3 mixers and 4 toasters.

Accepted Answer

The answer of Table 3-6&#10;Assume that Maya and Miguel can...

Question 22

Table 3-3&#10;Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.&#10;  &#10;Refer to Table 3-3.Assume that Zimbabwe and Portugal each has 180 machine minutes available.If each country divides its time equally between the production of toothbrushes and hairbrushes,then total production is&#10;A) 24 toothbrushes and 12 hairbrushes.&#10;B) 48 toothbrushes and 24 hairbrushes.&#10;C) 96 toothbrushes and 48 hairbrushes.&#10;D) 720 toothbrushes and 1440 hairbrushes.

Accepted Answer

The answer of Table 3-3&#10;Assume that Zimbabwe and Portugal can...

Question 23

Table 3-6&#10;Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.&#10;  &#10;Refer to Table 3-6.Assume that Maya and Miguel each has 40 hours available.If each person divides his/her time equally between the production of mixers and toasters,then total production is&#10;A) 2 mixer and 8 toasters.&#10;B) 3.5 mixers and 6 toasters.&#10;C) 5 mixers and 4 toasters.&#10;D) 7 mixers and 12 toasters.

Accepted Answer

The answer of Table 3-6&#10;Assume that Maya and Miguel can...

Question 24

Table 3-5&#10;Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.&#10;  &#10;Refer to Table 3-5.Which of the following combinations of cheese and bread could Spain produce in 40 hours?&#10;A) 2.25 units of cheese and 4 units of bread.&#10;B) 5.5 units of cheese and 3 units of bread.&#10;C) 7 units of cheese and 1.5 units of bread.&#10;D) 10 units of cheese and 5 units of bread.

Accepted Answer

The answer of Table 3-5&#10;Assume that England and Spain can...

Question 25

Table 3-6&#10;Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.&#10;  &#10;Refer to Table 3-6.Which of the following combinations of mixers and toasters could Miguel not produce in 90 hours?&#10;A) 0 mixers and 4 toasters.&#10;B) 1 mixer and 3 toasters.&#10;C) 0.75 mixers and 2.5 toasters.&#10;D) 2 mixers and 0 toasters.

Accepted Answer

The answer of Table 3-6&#10;Assume that Maya and Miguel can...

Question 26

Table 3-2&#10;Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.&#10;  &#10;Refer to Table 3-2.Which of the following represents Aruba's production possibilities frontier when 100 labor hours are available?&#10;A)  &#10;B)  &#10;C)  &#10;D)&#10;

Accepted Answer

The answer of Table 3-2&#10;Assume that Aruba and Iceland can...

Question 27

Table 3-4&#10;Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.&#10;  &#10;Refer to Table 3-4.Which of the following combinations of meat and potatoes could the farmer produce in 24 hours?&#10;A) 1 pound of meat and 8 pounds of potatoes.&#10;B) 2 pounds of meat and 5 pounds of potatoes.&#10;C) 3 pounds of meat and 12 pounds of potatoes.&#10;D) 4 pounds of meat and 8 pounds of potatoes.

Accepted Answer

The answer of Table 3-4&#10;Assume that the farmer and the...

Question 28

Table 3-5&#10;Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.&#10;  &#10;Refer to Table 3-5.We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Spain.If we were to do this,measuring cheese along the horizontal axis,then&#10;A) the slope of England's production possibilities frontier would be -4 and the slope of Spain's production possibilities frontier would be -2.&#10;B) the slope of England's production possibilities frontier would be -0.25 and the slope of Spain's production possibilities frontier would be -0.5.&#10;C) the slope of England's production possibilities frontier would be 0.25 and the slope of Spain's production possibilities frontier would be 0.5.&#10;D) the slope of England's production possibilities frontier would be 4 and the slope of Spain's production possibilities frontier would be 2.

Accepted Answer

The answer of Table 3-5&#10;Assume that England and Spain can...

Question 29

Table 3-5&#10;Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.&#10;  &#10;Refer to Table 3-5.Assume that England and Spain each has 40 labor hours available.If each country divides its time equally between the production of cheese and bread,then total production is&#10;A) 20 units of cheese and 5 units of bread.&#10;B) 25 units of cheese and 7.5 units of bread.&#10;C) 40 units of cheese and 10 units of bread.&#10;D) 50 units of cheese and 15 units of bread.

Accepted Answer

The answer of Table 3-5&#10;Assume that England and Spain can...

Question 30

Table 3-2&#10;Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.&#10;  &#10;Refer to Table 3-2.Which of the following combinations of coolers and radios could Aruba produce in one 40-hour week?&#10;A) 3 coolers and 7 radios&#10;B) 5 coolers and 6 radios&#10;C) 11 coolers and 4 radios&#10;D) 13 coolers and 3 radios

Accepted Answer

The answer of Table 3-2&#10;Assume that Aruba and Iceland can...

Question 31

Table 3-4&#10;Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.&#10;  &#10;Refer to Table 3-4.Which of the following combinations of meat and potatoes could the rancher not produce in 24 hours?&#10;A) 2 pounds of meat and 3 pounds of potatoes.&#10;B) 4 pounds of meat and 2 pounds of potatoes.&#10;C) 6 pounds of meat and 1 pounds of potatoes.&#10;D) 8 pounds of meat and 0.5 pound of potatoes.

Accepted Answer

The answer of Table 3-4&#10;Assume that the farmer and the...

Question 32

Table 3-3&#10;Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.&#10;  &#10;Refer to Table 3-3.Which of the following combinations of toothbrushes and hairbrushes could Zimbabwe not produce in 120 minutes?&#10;A) 5 toothbrushes and 11 hairbrushes&#10;B) 10 toothbrushes and 9 hairbrushes&#10;C) 20 toothbrushes and 6 hairbrushes&#10;D) 30 toothbrushes and 3 hairbrushes

Accepted Answer

The answer of Table 3-3&#10;Assume that Zimbabwe and Portugal can...

Question 33

Table 3-2&#10;Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.&#10;  &#10;Refer to Table 3-2.Which of the following represents Iceland's production possibilities frontier when 100 labor hours are available?&#10;A)  &#10;B)  &#10;C)  &#10;D)&#10;

Accepted Answer

The answer of Table 3-2&#10;Assume that Aruba and Iceland can...

Question 34

Table 3-1&#10;Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.&#10;  &#10;Refer to Table 3-1.Which of the following combinations of wheat and beef could Zardia not produce in one 10-hour day?&#10;A) 10 bushels of wheat and 45 pounds of beef&#10;B) 20 bushels of wheat and 30 pounds of beef&#10;C) 25 bushels of wheat and 25 pounds of beef&#10;D) 30 bushels of wheat and 15 pounds of beef

Accepted Answer

The answer of Table 3-1&#10;Assume that Andia and Zardia can...

Question 35

Table 3-2&#10;Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.&#10;  &#10;Refer to Table 3-2.Assume that Aruba and Iceland each has 80 labor hours available.If each country divides its time equally between the production of coolers and radios,then total production is&#10;A) 28 coolers and 50 radios.&#10;B) 30 coolers and 9 radios.&#10;C) 60 coolers and 18 radios.&#10;D) 120 coolers and 36 radios.

Accepted Answer

The answer of Table 3-2&#10;Assume that Aruba and Iceland can...

Question 36

Table 3-3&#10;Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.&#10;  &#10;Refer to Table 3-3.Which of the following combinations of toothbrushes and hairbrushes could Portugal produce in 30 minutes?&#10;A) 1 toothbrush and 4 hairbrushes&#10;B) 4 toothbrushes and 2 hairbrushes&#10;C) 5 toothbrushes and 6 hairbrushes&#10;D) 6 toothbrushes and 5 hairbrushes

Accepted Answer

The answer of Table 3-3&#10;Assume that Zimbabwe and Portugal can...

Question 37

Table 3-4&#10;Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.&#10;  &#10;Refer to Table 3-4.Assume that the farmer and the rancher each has 24 labor hours available.If each person divides his time equally between the production of meat and potatoes,then total production is&#10;A) 3 pounds of meat and 12 pounds of potatoes.&#10;B) 5.5 pounds of meat and 8 pounds of potatoes.&#10;C) 8 pounds of meat and 4 pounds of potatoes.&#10;D) 11 pounds of meat and 16 pounds of potatoes.

Accepted Answer

The answer of Table 3-4&#10;Assume that the farmer and the...

Question 38

Table 3-5&#10;Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.&#10;  &#10;Refer to Table 3-5.We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Spain.If we were to do this,measuring bread along the horizontal axis,then&#10;A) the slope of England's production possibilities frontier would be -4 and the slope of Spain's production possibilities frontier would be -2.&#10;B) the slope of England's production possibilities frontier would be -0.25 and the slope of Spain's production possibilities frontier would be -0.5.&#10;C) the slope of England's production possibilities frontier would be 0.25 and the slope of Spain's production possibilities frontier would be 0.5.&#10;D) the slope of England's production possibilities frontier would be 4 and the slope of Spain's production possibilities frontier would be 2.

Accepted Answer

The answer of Table 3-5&#10;Assume that England and Spain can...

Question 39

Table 3-3&#10;Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.&#10;  &#10;Refer to Table 3-3.Which of the following represents Zimbabwe's and Portugal's production possibilities frontiers when each country has 60 minutes of machine time available?&#10;A) Zimbabwe  &#10;Portugal  &#10;B) Zimbabwe  &#10;Portugal  &#10;C) Zimbabwe  &#10;Portugal  &#10;D) Zimbabwe  &#10;Portugal

Accepted Answer

The answer of Table 3-3&#10;Assume that Zimbabwe and Portugal can...

Question 40

Table 3-5&#10;Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.&#10;  &#10;Refer to Table 3-5.Which of the following combinations of cheese and bread could England not produce in 40 hours?&#10;A) 5 units of cheese and 9 units of bread.&#10;B) 10 units of cheese and 7.5 units of bread.&#10;C) 20 units of cheese and 5 units of bread.&#10;D) 30 units of cheese and 2.5 units of bread.

Accepted Answer

The answer of Table 3-5&#10;Assume that England and Spain can...

Question 41

Table 3-8&#10;Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.&#10;  &#10;Refer to Table 3-8.Assume that Huang and Min each has 36 labor hours available.If each person divides his/her time equally between the production of parasols and plates,then total production is&#10;A) 18 parasols and 6 plates.&#10;B) 18 parasols and 7.5 plates.&#10;C) 16 parasols and 12 plates.&#10;D) 36 parasols and 15 plates.

Accepted Answer

The answer of Table 3-8&#10;Assume that Huang and Min can...

Question 42

Table 3-6&#10;Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.&#10;  &#10;Refer to Table 3-6.We could use the information in the table to draw a production possibilities frontier for Maya and a second production possibilities frontier for Miguel.If we were to do this,measuring mixers along the horizontal axis,then&#10;A) the slope of Maya's production possibilities frontier would be -1.6 and the slope of Miguel's production possibilities frontier would be -2.&#10;B) the slope of Maya's production possibilities frontier would be -0.625 and the slope of Miguel's production possibilities frontier would be -0.5.&#10;C) the slope of Maya's production possibilities frontier would be 0.625 and the slope of Miguel's production possibilities frontier would be 0.5.&#10;D) the slope of Maya's production possibilities frontier would be 1.6 and the slope of Miguel's production possibilities frontier would be 2.

Accepted Answer

The answer of Table 3-6&#10;Assume that Maya and Miguel can...

Question 43

Table 3-12&#10;  &#10;Refer to Table 3-12.Which of the following combinations of meat and potatoes could the rancher not produce in 40 hours?&#10;A) 2 pounds of meat and 3 pounds of potatoes.&#10;B) 3 pounds of meat and 3 pounds of potatoes.&#10;C) 4 pounds of meat and 2 pounds of potatoes.&#10;D) 5 pounds of meat and 2 pound of potatoes.

Accepted Answer

The answer of Table 3-12&#10;  &#10;Refer to Table 3-12.Which...

Question 44

Table 3-11&#10;Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate.&#10;  &#10;Refer to Table 3-11.Falda's opportunity cost of one bushel of wheat is&#10;A) 2/3 yard of cloth and Varick's opportunity cost of one bushel of wheat is 2/5 yard of cloth.&#10;B) 2/3 yard of cloth and Varick's opportunity cost of one bushel of wheat is 5/2 yards of cloth.&#10;C) 3/2 yards of cloth and Varick's opportunity cost of one bushel of wheat is 2/5 yard of cloth.&#10;D) 3/2 yards of cloth and Varick's opportunity cost of one bushel of wheat is 5/2 yards of cloth.

Accepted Answer

The answer of Table 3-11&#10;Assume that Falda and Varick can...

Question 45

Table 3-11&#10;Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate.&#10;  &#10;Refer to Table 3-11.Falda's opportunity cost of one yard of cloth is&#10;A) 2/3 bushel of wheat and Varick's opportunity cost of one yard of cloth is 2/5 bushel of wheat.&#10;B) 2/3 bushel of wheat and Varick's opportunity cost of one yard of cloth is 5/2 bushels of wheat.&#10;C) 3/2 bushels of wheat and Varick's opportunity cost of one yard of cloth is 2/5 bushel of wheat.&#10;D) 3/2 bushels of wheat and Varick's opportunity cost of one yard of cloth is 5/2 bushels of wheat.

Accepted Answer

The answer of Table 3-11&#10;Assume that Falda and Varick can...

Question 46

Table 3-12&#10;  &#10;Refer to Table 3-12.Assume that the farmer and the rancher each has 40 labor hours available.If each person divides his time equally between the production of meat and potatoes,then total production is&#10;A) 5 pounds of meat and 4 pounds of potatoes.&#10;B) 6 pounds of meat and 7.5 pounds of potatoes.&#10;C) 7.5 pounds of meat and 6 pounds of potatoes.&#10;D) 10 pounds of meat and 8 pounds of potatoes.

Accepted Answer

The answer of Table 3-12&#10;  &#10;Refer to Table 3-12.Assume...

Question 47

Table 3-8&#10;Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.&#10;  &#10;Refer to Table 3-8.Which of the following points would be on Min's production possibilities frontier,based on a 36-hour production period?&#10;A) (3 parasols, 8 plates)&#10;B) (8 parasols, 5 plates)&#10;C) (11 parasols, 4 plates)&#10;D) More than one of the above would be on Min's production possibilities frontier.

Accepted Answer

The answer of Table 3-8&#10;Assume that Huang and Min can...

Question 48

Table 3-7&#10;Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.&#10;  &#10;Refer to Table 3-7.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&#10;A) the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3.&#10;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.&#10;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.&#10;D) the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

Accepted Answer

The answer of Table 3-7&#10;Assume that Japan and Korea can...

Question 49

Table 3-9&#10;Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.&#10;  &#10;Refer to Table 3-9.Which of the following points would not be on Jim's production possibilities frontier,based on a 40-hour week?&#10;A) (0 computers set up, 60 computers tested)&#10;B) (40 computers set up, 30 computers tested)&#10;C) (60 computers set up, 12 computers tested)&#10;D) (72 computers set up, 6 computers tested)

Accepted Answer

The answer of Table 3-9&#10;Barb and Jim run a business...

Question 50

Table 3-8&#10;Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.&#10;  &#10;Refer to Table 3-8.Which of the following points would not be on Huang's production possibilities frontier,based on a 36-hour production period?&#10;A) (18 parasols, 0 plates)&#10;B) (12 parasols, 2 plates)&#10;C) (6 parasols, 4 plates)&#10;D) (2 parasols, 6 plates)

Accepted Answer

The answer of Table 3-8&#10;Assume that Huang and Min can...

Question 51

Table 3-10&#10;Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.&#10;  &#10;Refer to Table 3-10.Which of the following points would be on Juanita's production possibilities frontier,based on a 40-hour week?&#10;A) (120 cellular phones programmed, 295 cellular phones tested)&#10;B) (130 cellular phones programmed, 225 cellular phones tested)&#10;C) (140 cellular phones programmed, 155 cellular phones tested)&#10;D) Both (a) and (b) would be on Juanita's production possibilities frontier.

Accepted Answer

The answer of Table 3-10&#10;Juanita and Shantala run a business...

Question 52

Table 3-10&#10;Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.&#10;  &#10;Refer to Table 3-10.Which of the following points would be on Shantala's production possibilities frontier,based on a 40-hour week?&#10;A) (120 cellular phones programmed, 250 cellular phones tested)&#10;B) (180 cellular phones programmed, 150 cellular phones tested)&#10;C) (240 cellular phones programmed, 600 cellular phones tested)&#10;D) More than one of the above would be on Shantala's production possibilities frontier.

Accepted Answer

The answer of Table 3-10&#10;Juanita and Shantala run a business...

Question 53

Table 3-7&#10;Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.&#10;  &#10;Refer to Table 3-7.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&#10;A) 40 cars and 8 airplanes.&#10;B) 64 cars and 16 airplanes.&#10;C) 80 cars and 16 airplanes.&#10;D) 128 cars and 32 airplanes.

Accepted Answer

The answer of Table 3-7&#10;Assume that Japan and Korea can...

Question 54

Table 3-10&#10;Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.&#10;  &#10;Refer to Table 3-10.The number of minutes needed by Juanita to program a cellular phone is&#10;A) 4.&#10;B) 5.&#10;C) 7.5.&#10;D) 15.

Accepted Answer

The answer of Table 3-10&#10;Juanita and Shantala run a business...

Question 55

Table 3-7&#10;Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.&#10;  &#10;Refer to Table 3-7.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&#10;A) the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3.&#10;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.&#10;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.&#10;D) the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

Accepted Answer

The answer of Table 3-7&#10;Assume that Japan and Korea can...

Question 56

Table 3-9&#10;Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.&#10;  &#10;Refer to Table 3-9.The number of minutes needed by Barb to test a computer is&#10;A) 36.&#10;B) 48.&#10;C) 60.&#10;D) 64.

Accepted Answer

The answer of Table 3-9&#10;Barb and Jim run a business...

Question 57

Table 3-11&#10;Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate.&#10;  &#10;Refer to Table 3-11.Assume that Falda and Varick each has 1 hour available.If each person divides his time equally between the production of wheat and cloth,then total production is&#10;A) 4 bushels of wheat and 7.5 yards of cloth.&#10;B) 7 bushels of wheat and 13.5 yards of cloth.&#10;C) 8 bushels of wheat and 15 yards of cloth.&#10;D) 14 bushels of wheat and 27 yards of cloth.

Accepted Answer

The answer of Table 3-11&#10;Assume that Falda and Varick can...

Question 58

Table 3-6&#10;Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.&#10;  &#10;Refer to Table 3-6.We could use the information in the table to draw a production possibilities frontier for Maya and a second production possibilities frontier for Miguel.If we were to do this,measuring toasters along the horizontal axis,then&#10;A) the slope of Maya's production possibilities frontier would be -1.6 and the slope of Miguel's production possibilities frontier would be -2.&#10;B) the slope of Maya's production possibilities frontier would be -0.625 and the slope of Miguel's production possibilities frontier would be -0.5.&#10;C) the slope of Maya's production possibilities frontier would be 0.625 and the slope of Miguel's production possibilities frontier would be 0.5.&#10;D) the slope of Maya's production possibilities frontier would be 1.6 and the slope of Miguel's production possibilities frontier would be 2.

Accepted Answer

The answer of Table 3-6&#10;Assume that Maya and Miguel can...

Question 59

Table 3-12&#10;  &#10;Refer to Table 3-12.Which of the following combinations of meat and potatoes could the farmer produce in 40 hours?&#10;A) 1 pound of meat and 7 pounds of potatoes.&#10;B) 2 pounds of meat and 5 pounds of potatoes.&#10;C) 3 pounds of meat and 3 pounds of potatoes.&#10;D) 4 pounds of meat and 2 pounds of potatoes.

Accepted Answer

The answer of Table 3-12&#10;  &#10;Refer to Table 3-12.Which...

Question 60

Table 3-9&#10;Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.&#10;  &#10;Refer to Table 3-9.Which of the following points would not be on Barb's production possibilities frontier,based on a 40-hour week?&#10;A) (0 computers set up, 40 computers tested)&#10;B) (8 computers set up, 32 computers tested)&#10;C) (25 computers set up, 20 computers tested)&#10;D) (30 computers set up, 16 computers tested)

Accepted Answer

The answer of Table 3-9&#10;Barb and Jim run a business...

Question 61

Figure 3-3&#10;   &#10;   &#10;  &#10;Refer to Figure 3-3.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?&#10;A) 1/4 hour&#10;B) 1/3 hour&#10;C) 3 hours&#10;D) 4 hours

Accepted Answer

The answer of Figure 3-3&#10;   &#10;  ...

Question 62

Table 3-14&#10;The following table contains some production possibilities for an economy for a given year.&#10;  &#10;Refer to Table 3-14.If the production possibilities frontier is bowed outward,then &#34;?&#34; could be&#10;A) 340.&#10;B) 330.&#10;C) 320.&#10;D) 310.

Accepted Answer

The answer of Table 3-14&#10;The following table contains some production...

Question 63

Figure 3-3&#10;   &#10;   &#10;  &#10;Refer to Figure 3-3.If the production possibilities frontiers shown are each for one day of production,then which of the following combinations of tacos and burritos could Arturo and Dina together produce in a given day?&#10;A) 400 tacos and 350 burritos&#10;B) 500 tacos and 250 burritos&#10;C) 600 tacos and 150 burritos&#10;D) 700 tacos and 100 burritos

Accepted Answer

The answer of Figure 3-3&#10;   &#10;  ...

Question 64

Table 3-13&#10;The following table contains some production possibilities for an economy for a given month.&#10;  &#10;Refer to Table 3-13.If the production possibilities frontier is bowed outward,then &#34;?&#34; could be&#10;A) 100.&#10;B) 150.&#10;C) 200.&#10;D) 250.

Accepted Answer

The answer of Table 3-13&#10;The following table contains some production...

Deck 3: Interdependence and the Gains from Trade.