Question 1

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of N that Teddy can produce is

Accepted Answer

The maximum quantity of N that Teddy can produce occurs when M is 0. Setting M = 0 in the equation M = 21 - 3N gives 0 = 21 - 3N, solving for N gives N = 7.

Question 2

Production possibilities curves are downward sloping,reflecting the principle of

Accepted Answer

The answer of Production possibilities curves are downward sloping,reflecting the...

Question 3

Maria can produce 100 pounds of tomatoes or 25 pounds of squash in her garden each summer,while Tonya can produce 50 pounds of tomatoes or 25 pounds of squash.If the production possibilities curves are drawn with tomatoes on the vertical axis and squash on the horizontal axis,then the absolute values of the slope of Maria's and Tonya's production possibilities curves,respectively,are

Accepted Answer

The answer of Maria can produce 100 pounds of tomatoes...

Question 4

In a two-person,two-good economy,the benefits of labour specialization will be larger when

Accepted Answer

Labour specialization leads to increased efficiency and productivity when the opportunity cost of producing a good is lower for one person compared to the other. Therefore, the benefits of labor specialization will be larger when the difference in the opportunity costs of the two persons is large, making it more advantageous for one person to specialize in producing one good while the other person specializes in producing the other good.

Question 5

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below.
 
-For any efficient point with less than 10 computers and more than 120 calculators,Smith will __________ and Jones will __________.

Accepted Answer

Smith will split his time between the two because he needs to manage both products, while Jones will only produce calculators as the condition specifies more than 120 calculators.

Question 6

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The slope of Teddy's production possibilities curve,when M is on the vertical axis,is

Accepted Answer

The slope of the production possibilities curve is the coefficient of N when M is on the vertical axis, which is -3.

Question 7

-Bobby Jo's opportunity cost of an extra bale of hemp is __________ and Mary Lou's is __________.

Accepted Answer

The answer of 
-Bobby Jo's opportunity cost of an extra...

Question 8

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3)is a(n)__________ point.

Accepted Answer

The combination (14,3) lies on the production possibilities curve W = 20 - 2Z, as substituting Z = 3 gives W = 20 - 2(3) = 14. Therefore, it is an efficient point.

Question 9

If a given production combination is efficient,then it must be

Accepted Answer

An efficient production combination means that it is producing the maximum possible output of one good given a certain level of production of the other good without using more resources than available. This can only occur on the production possibilities curve, as any point inside the curve represents an inefficient use of resources and any point outside the curve is unattainable with current resources. Therefore, choice C is the correct answer as an efficient point must be on the production possibilities curve.

Question 10

Joan can produce a maximum of 14 units of good Y and a maximum of 21 units of good X.If Y is on the vertical axis,the equation for her production possibilities curve is

Accepted Answer

In order to find the equation of the production possibilities curve, we need to plot the maximum possible combinations of X and Y that Joan can produce, given her resources. 
The maximum units of Y Joan can produce is 14, and the maximum units of X she can produce is 21. 
If we put Y on the vertical axis, we can start by plotting the points (0,14) and (21,0), which represent the maximum production of Y and X respectively. 
Connecting these two points gives us a straight line, which represents the production possibilities curve.

To find the equation of this line, we need to use the slope-intercept form: Y = mx + b. 
The slope is calculated as the change in Y over the change in X, which is (14-0)/(0-21) = -0.67. 
Plugging in the slope and the Y-intercept (b=14) we get: Y = 14 - 0.67X, which is equivalent to choice C.

Question 11

-Because Bobby Jo and Mary Lou have __________ opportunity costs,they can experience __________ from specialization.

Accepted Answer

The answer of 
-Because Bobby Jo and Mary Lou have...

Question 12

Suppose that Penn's opportunity cost of producing an extra Pepsi is 3 cheeseburgers while Teller's opportunity cost is 0.14 cheeseburgers.One could predict that

Accepted Answer

The concept of comparative advantage suggests that individuals or countries should specialize in producing goods for which they have a lower opportunity cost. In this case, Penn's opportunity cost of producing an extra Pepsi is higher than Teller's, indicating that Teller has a comparative advantage in producing Pepsis. This means that if they specialize and coordinate their production, Teller should focus on producing Pepsis while Penn should focus on producing cheeseburgers. This way, they can both benefit from trade and potentially increase their overall production of both goods. Therefore, option E, which suggests they have potentially much to gain from specialization and coordinating production, is the best choice.

Question 13

If a given production combination is known to be attainable,then it must be

Accepted Answer

An attainable production combination can be either efficient (on the curve) or inefficient (inside the curve), but not beyond the curve.

Question 14

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (11,5)is a(n)__________ point.

Accepted Answer

The answer of Jerry's production possibilities curve for goods W...

Question 15

The production possibilities curve is

Accepted Answer

The production possibility curve is the boundary that divides all production combinations into attainable ones and unattainable ones. It represents the maximum potential production of two goods, given a fixed amount of resources and technology. The curve shows that by producing more of one good, society must give up some of the production of the other good. The curve is bowed outward due to the law of increasing opportunity cost, which states that as production of one good increases, the opportunity cost of producing an additional unit of that good increases. Therefore, choices A, B, D, and E are incorrect.

Question 16

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Accepted Answer

The Principle of Increasing Opportunity Cost states that as we produce more of a good, the opportunity cost of producing that good increases. In this case, Joe's opportunity cost of producing body piercings is higher than Sam's, meaning that Joe is better at producing tattoos than piercings, while Sam is better at producing piercings than tattoos. Therefore, as more body piercings are produced, Sam would be used first and then Joe because Sam's opportunity cost is lower than Joe's.

Question 17

Joe has an absolute advantage in producing goods X and Y compared to Ted.Moreover,they have the same opportunity costs.One can predict that the gains from coordinating production and specialization is

Accepted Answer

Since Joe has an absolute advantage in both goods and they have the same opportunity costs, there are no gains from specialization, as neither can produce one good at a lower opportunity cost than the other.

Question 18

In one hour,Juan can produce 8 chairs or 2 tables.If chairs are on the vertical axis,the slope of his production possibilities curve is

Accepted Answer

The slope of the production possibilities curve is the opportunity cost of producing one more unit of the good on the horizontal axis (tables) in terms of the good on the vertical axis (chairs). Juan can produce 8 chairs or 2 tables in one hour, so the opportunity cost of 1 table is 4 chairs, making the slope -4.

Question 19

In one 8-hour workday,Hector can produce 25 court appeals or 5 new lawsuits.If appeals are on the vertical axis,the slope of his production possibilities curve is

Accepted Answer

The slope of the production possibilities curve is the ratio of the change in appeals to the change in lawsuits. In this case, the change in appeals is 25 and the change in lawsuits is 5, so the slope is 25/5 = 5.

Question 20

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of M that Teddy can produce is

Accepted Answer

To find the maximum quantity of M that Teddy can produce, we need to find the point where M is at its highest value on the production possibilities curve.

We can graph the equation M = 21 - 3N to see what the production possibilities curve looks like.

If we let N = 0, we get M = 21. This means that Teddy can produce 21 units of M if he produces no N.

If we let M = 0, we get 0 = 21 - 3N, which gives us N = 7. This means that Teddy can produce 7 units of N if he produces no M.

If we plot these two points on a graph and draw a line connecting them, we get the production possibilities curve.

To find the maximum quantity of M, we need to find the point on this curve where M is at its highest. This occurs where the curve intersects the vertical axis (where N = 0). So the maximum quantity of M that Teddy can produce is 21.

Therefore, the answer is B.

Quiz 2: Measuring Macroeconomic Performance: Saving and Wealth

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of N that Teddy can produce is

Production possibilities curves are downward sloping,reflecting the principle of

In a two-person,two-good economy,the benefits of labour specialization will be larger when

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below. -For any efficient point with less than 10 computers and more than 120 calculators,Smith will and Jones will .

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The slope of Teddy's production possibilities curve,when M is on the vertical axis,is

-Bobby Jo's opportunity cost of an extra bale of hemp is and Mary Lou's is .

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3) is a(n) __________ point.

If a given production combination is efficient,then it must be

Joan can produce a maximum of 14 units of good Y and a maximum of 21 units of good X.If Y is on the vertical axis,the equation for her production possibilities curve is

-Because Bobby Jo and Mary Lou have opportunity costs,they can experience from specialization.

Suppose that Penn's opportunity cost of producing an extra Pepsi is 3 cheeseburgers while Teller's opportunity cost is 0.14 cheeseburgers.One could predict that

If a given production combination is known to be attainable,then it must be

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (11,5) is a(n) __________ point.

The production possibilities curve is

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Joe has an absolute advantage in producing goods X and Y compared to Ted.Moreover,they have the same opportunity costs.One can predict that the gains from coordinating production and specialization is

In one hour,Juan can produce 8 chairs or 2 tables.If chairs are on the vertical axis,the slope of his production possibilities curve is

In one 8-hour workday,Hector can produce 25 court appeals or 5 new lawsuits.If appeals are on the vertical axis,the slope of his production possibilities curve is

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of M that Teddy can produce is

Quiz 2: Measuring Macroeconomic Performance: Saving and Wealth

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of N that Teddy can produce is

Production possibilities curves are downward sloping,reflecting the principle of

In a two-person,two-good economy,the benefits of labour specialization will be larger when

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below. -For any efficient point with less than 10 computers and more than 120 calculators,Smith will __________ and Jones will __________.

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The slope of Teddy's production possibilities curve,when M is on the vertical axis,is

-Bobby Jo's opportunity cost of an extra bale of hemp is __________ and Mary Lou's is __________.

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (14,3) is a(n) __________ point.

If a given production combination is efficient,then it must be

Joan can produce a maximum of 14 units of good Y and a maximum of 21 units of good X.If Y is on the vertical axis,the equation for her production possibilities curve is

-Because Bobby Jo and Mary Lou have __________ opportunity costs,they can experience __________ from specialization.

Suppose that Penn's opportunity cost of producing an extra Pepsi is 3 cheeseburgers while Teller's opportunity cost is 0.14 cheeseburgers.One could predict that

If a given production combination is known to be attainable,then it must be

Jerry's production possibilities curve for goods W and Z is W = 20 - 2Z,where W is the quantity of good W produced and Z is the quantity of good Z produced.The combination of W and Z (11,5) is a(n) __________ point.

The production possibilities curve is

Joe's opportunity cost of producing body piercings is 3 tattoos,while Sam's is 0.75 tattoos.The Principle of Increasing Opportunity Cost would indicate that,to produce more and more body piercings,

Joe has an absolute advantage in producing goods X and Y compared to Ted.Moreover,they have the same opportunity costs.One can predict that the gains from coordinating production and specialization is

In one hour,Juan can produce 8 chairs or 2 tables.If chairs are on the vertical axis,the slope of his production possibilities curve is

In one 8-hour workday,Hector can produce 25 court appeals or 5 new lawsuits.If appeals are on the vertical axis,the slope of his production possibilities curve is

Teddy's production possibilities curve for goods M and N is described by the following equation: M = 21 - 3N,where M is the quantity of good M produced and N is the quantity of good N produced.The maximum quantity of M that Teddy can produce is

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below. -For any efficient point with less than 10 computers and more than 120 calculators,Smith will and Jones will .

-Bobby Jo's opportunity cost of an extra bale of hemp is and Mary Lou's is .

-Because Bobby Jo and Mary Lou have opportunity costs,they can experience from specialization.