Question 1

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. 
-The highest opportunity cost anywhere in Table 1.2 for B-1 bombers in terms of Stealth bombers is

Accepted Answer

The highest opportunity cost for B-1 bombers in terms of Stealth bombers is 10 Stealth bombers per B-1 bomber, indicating that producing one more B-1 bomber would mean forgoing the production of 10 Stealth bombers.

Question 2

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs.  
-On the basis of your calculations in Table 1.3,what is gained from producing at point L rather than point K?

Accepted Answer

The answer of Table 1.3 shows the hypothetical trade-off between...

Question 3

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs.  On the basis of your calculations in Table 1.3
-what is the opportunity cost of producing at point M rather than point N?

Accepted Answer

Opportunity cost is the value of the next best alternative foregone. If producing at point M rather than point N results in the loss of 2 brushes, then the opportunity cost is 2 brushes.

Question 4

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers.  On the basis of your calculations in Table 1.2
-what is gained by producing at point B rather than point A?

Accepted Answer

Producing at point B rather than point A gains an additional 15 B-1 bombers without sacrificing any Stealth bombers. Moving from point A to point B involves only an opportunity cost of 30 Stealth bombers. Point B represents the best choice because it maximizes the production of both types of bombers without giving up too much of either.

Question 5

Use the following figure to answer the questions: Figure 1.9 
-as you move up the curve from point J toward point M,the slope

Accepted Answer

As you move up the curve from point J toward point M, the slope increases because the curve is becoming steeper.

Question 6

Use the following figure to answer the questions: Figure 1.9 
-In Figure 1.9 the slope of the line is

Accepted Answer

The slope of a line is the measure of how steeply it is inclined. In Figure 1.9, the slope of the line is greater at point M than point L because the line is steeper at point M than point L. Therefore, the best choice is D.

Question 7

When the relationship between two variables changes,

Accepted Answer

When the relationship between two variables changes, the entire curve shifts. This is because the relationship between the variables is represented by the curve, and any change in the relationship will affect the entire curve rather than just a single point or segment. Therefore, option C is the correct choice. Options A and B are incorrect because they do not capture the full extent of how the curve changes when the relationship between the variables changes. Option D is also incorrect because it includes options that are not necessarily true, such as movement from one point on the curve to another point on the curve or the curve becoming linear.

Question 8

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. 
-Refer to Table 1.2.In the production range of 20 to 35 B-1 bombers,the opportunity cost of producing 1 more B-1 bomber is

Accepted Answer

The answer of Table 1.2 shows the hypothetical trade-off between...

Question 9

The Economy Tomorrow on "Harnessing the Sun" states that the percentage of electricity that is generated from burning oil and coal is:

Accepted Answer

The article states that "more than 50 percent of electricity worldwide is generated from burning oil and coal."

Question 10

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs.  On the basis of your calculations in Table 1.3
-what is gained by producing at point M rather than point N?

Accepted Answer

The answer of Table 1.3 shows the hypothetical trade-off between...

Question 11

One World View article is titled "Chronic Food Shortage Shows Despite Efforts by North Korea to Hide It." If North Korea reduces the size of its military and produces more food,this is most consistent with

Accepted Answer

If North Korea reduces the size of its military and produces more food, it would represent a movement along the economy's production possibilities curve. This is because these actions would be reallocating resources within the economy, allowing for an increase in food production without sacrificing the current size of the military.

Question 12

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. 
-The lowest opportunity cost anywhere in Table 1.2 for Stealth bombers in terms of B-1 bombers is

Accepted Answer

The answer of Table 1.2 shows the hypothetical trade-off between...

Question 13

Figure 1.8 suggests that

Accepted Answer

Figure 1.8 shows a nonlinear relationship between study time and grade point average, indicating that the law of increasing opportunity cost does apply (i.e. as more study time is allocated, the opportunity cost of using it for another activity increases). Therefore, options A, B, and D can be eliminated.

Question 14

The fact that there are too few resources to satisfy all our wants is attributed to

Accepted Answer

Scarcity is the fundamental economic problem of having seemingly unlimited wants and needs in a world of limited resources. It is what forces individuals and societies to make choices about how to allocate resources towards different needs and wants. Greed and lack of money may exacerbate scarcity, but they are not the root cause. Shortages may be a consequence of scarcity, but scarcity itself is the underlying condition.

Question 15

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs.  On the basis of your calculations in Table 1.3
-the law of increasing opportunity costs applies to

Accepted Answer

The law of increasing opportunity costs states that as more of one good is produced, the opportunity cost of producing an additional unit of that good increases. This is because the resources used to produce the additional unit could have been used to produce something else. In the case of brushes and combs, the law of increasing opportunity costs applies to both goods. As more brushes are produced, the opportunity cost of producing an additional brush increases because the resources used to produce the additional brush could have been used to produce combs. Similarly, as more combs are produced, the opportunity cost of producing an additional comb increases because the resources used to produce the additional comb could have been used to produce brushes.

Question 16

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers.  On the basis of your calculations in Table 1.2
-what is gained by producing at point B rather than point C?

Accepted Answer

The answer of Table 1.2 shows the hypothetical trade-off between...

Question 17

In using a guns and butter production possibilities curve with increasing opportunity cost,producing more and more tanks

Accepted Answer

The increasing opportunity cost means that as we produce more tanks, we have to give up larger and larger amounts of butter. This implies that the resources used for producing tanks are better suited for producing butter and as we use more and more of these resources for tank production, the opportunity cost of producing an additional unit of tanks increases. This results in a curved PPF with increasing opportunity cost. The cost of producing each individual tank does not decrease as we produce more, and it is not possible to produce an infinite number of tanks due to scarcity. Therefore, options A, B, and D are incorrect.

Question 18

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs. 
- On the basis of your calculations in Table 1.3,in the production range of 21 to 23 brushes the opportunity cost of producing more comb in terms of brushes is

Accepted Answer

To determine the opportunity cost, we divide the amount of the item being given up by the amount of the item being gained. For example, the opportunity cost of producing 1 more comb is equal to the number of brushes that must be given up to produce that comb.

In the table, we can see that the opportunity cost for producing the first comb is 1 brush (0 brushes produced -> 1 comb produced). The opportunity cost for producing the second comb is 1/2 a brush (1 brush produced -> 2 combs produced). Similarly, the opportunity cost for producing the third comb is 1/3 of a brush.

As we increase production of combs, the opportunity cost per comb increases. This is because as we produce more combs, we have to give up more brushes to produce each additional comb.

In the production range of 21 to 23 brushes, we can see that the opportunity cost of producing more combs in terms of brushes is 1/2. This means that for each additional comb produced in this range, a producer would have to give up 1/2 of a brush.

Therefore, the best choice would be to produce 22 brushes and 11 combs. This is because producing more combs beyond this point would increase the opportunity cost beyond 1/2 of a brush per comb.

Question 19

The slope of a curve at any point is given by this formula:

Accepted Answer

The slope of a curve at any point is defined as the change in y coordinates between two points over the change in their x coordinates. This is represented by the formula (y2-y1)/(x2-x1). Therefore, option A is the correct choice.

Question 20

A line that slopes downward from left to right has a

Accepted Answer

A line that slopes downward from left to right has a negative slope because the slope is calculated by the change in y divided by the change in x, and in this case, the change in y is negative as you move from left to right.

Quiz 1: Economics: the Core Issues Appendix: Using Graphs

Use the following figure to answer the questions: Figure 1.9 -as you move up the curve from point J toward point M,the slope

Use the following figure to answer the questions: Figure 1.9 -In Figure 1.9 the slope of the line is

When the relationship between two variables changes,

The Economy Tomorrow on "Harnessing the Sun" states that the percentage of electricity that is generated from burning oil and coal is:

One World View article is titled "Chronic Food Shortage Shows Despite Efforts by North Korea to Hide It." If North Korea reduces the size of its military and produces more food,this is most consistent with

Figure 1.8 suggests that

The fact that there are too few resources to satisfy all our wants is attributed to

In using a guns and butter production possibilities curve with increasing opportunity cost,producing more and more tanks

The slope of a curve at any point is given by this formula:

A line that slopes downward from left to right has a