We say that A has a comparative advantage in the production of good X if A:}, In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. Refer to the table, which gives five points on a nation's PPF. A straight Production Possibility Frontier (PPF) implies that the Marginal Rate of Substitution (MRS) between two products is constant — for example, producing an additional ton of soybeans always requires giving up two tons of wheat. A production possibility frontier will be a straight line when: A. efficiency is achieved. Any production point outside the production possibilities frontier: 10. The body of skills and knowledge involved in the use of resources in production. If Mary wants to move from point d to point c, she must:}. Consider the PPF for office buildings and housing shown in the graph. 11. C) opportunity cost is decreasing. Tom has a comparative advantage in growing tomatoes if ________:}, If Tom and Di specialize in producing the goods in which he and she have a comparativeadvantage and they exchange goods, then ________:}, Two social institutions that are essential for trade to be organized are ________:}, Harry produces 2 balloon rides and 4 boat rides an hour. Production points inside the production possibilities frontier:}, 22. From this information you can conclude that production is inefficient if this economy produces. What is the opportunity cost of one unit of Y when the production of good Y increases from 16 to 28 units? A movement from ________ involves the greatest opportunity cost of increasing the, The table shows the production possibilities frontier for the economy of Arkadia. He decides to study for his economics exam instead of going to the concert. B) the two products must have the same price. ______ is illustrated by a movement from one point to another on the PPF. A) Opportunity costs are constant. The opportunity cost of increasing the production of Y from 16 to 36 units is A) 4 units of X. A point inside a production possibilities frontier :}, 16. A production possibilities frontier will be a straight line if? The marginal benefit that Beth gets from the second magazine is the ________:}, Tom and Di grow tomatoes and turnips. Production Possibilities A production possibility frontier is used to illustrate the concepts of opportunity cost, trade-offs and also show the effects of economic growth. C)opportunity costs are constant. In the above figure, which point represents an attainable but inefficient production point? 24. 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. Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. B) opportunity cost is constant. The production possibilities frontier represents: 8. Generally, opportunity costs increase and the production possibilities frontier bows outward. If the production possibility frontier is a straight line, which of the following is true? ________ has a comparative advantage in teapots and ________ has a comparative advantage in coffeepots. Which of the following statements about comparative advantage is correct? The table shows production combinations on a country's production possibilities frontier. In one day, Brandon can either plow 10 acres or plant 20 acres. Refer to the production possibilities frontier in the figure. Brandon and Christopher can:}, A nation can produce at a point outside its PPF:}, A nation can consume at a point outside its PPF:}. The opportunity cost of fish is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________ for Abe than for Zeb. The opportunity cost of a unit of wheat ________:}, The opportunity cost of producing a unit of consumption at point b in the Graph ________ point a:}, Leisure Land produces only sun screen and camel rides. b. an economy is interdependent and engaged in trade instead of self-sufficient. In the production possibilities frontier depicted in the graph, which of the following combinations of hats and bananas is generated by an efficient allocation of resources (no misallocated resources)? This is known as opportunity cost. ________ advantage in making pizzas:}, Anna and Maria produce shirts and ties. 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. Points within the curve show when a country’s resources are not being fully utilised ( points) A production possibilities frontier is a straight line when A. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. In one day, Brandon can either plow 10 acres or plant 20 acres. B)resources are imperfect substitutes. B. law of constant opportunity costs applies. Production Possibilities Frontier Graph Sometimes, the production possibility frontier does not look like a curve—instead, it’s linear, meaning that it’s simply a straight line. A nation produces at a point inside its PPF:}. C) the opportunity costs of the products are constant. D)technology is rapidly expanding. After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and, The production possibilities frontier separates ________:}, As we move along a bowed-out production possibility frontier, producing more tacos and less pizza, the opportunity cost of a pizza ________:}, Moving from one point on the production possibilities frontier to another ________:}, Microsoft's marginal cost of the 100th copy of Windows 2002 is ________:}, Beth reads two magazines this afternoon. The figure illustrates that if this country wishes to move from its current production point (labeled "Current") and have 10 more tons of food, it can do this by producing :}, 15. Refer to the table, which gives five points on a nation's PPF. _______ is illustrated by the fact that we have to find a point either on or below the frontier. This fact:}, When the production possibilities frontier bows outward from the origin:}, The slope of a production possibilities frontier that displays increasing opportunity cost is:}, The fact that individual productive resources are NOT equally useful in all activities:}, The Graph illustrates Mary's production possibilities frontier. B) 8 units of X. A situation in which some resources are NOT fully utilized is represented in a production possibilities frontier diagram by:}, 21. The points from A to F in the above diagram shows this. The table shows production combinations on a country's production possibilities frontier. The opportunity cost is zero, b. Refer to the table, which describes a nation's PPF. E)some resources are not being used efficiently. 23. This is called the Law of ___________. Suppose we have a PPC of good y against good x. For her, the opportunity cost of one more ton of corn is:}, The principle of increasing opportunity cost leads to:}, A PPF, such as the graph, that bows outward illustrates, As we increase the production of computers, we find that we must give up larger and larger amounts of DVD players per computer:}, As output moves from point a to point b to point c along the PPF in the graph, the opportunity cost of one more unit of good X:}, Refer to the production possibilities frontier in the graph. 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. B. an economy is interdependent and engaged in trade instead of self-sufficient. Some time ago the government of China required many highly skilled technicians and scientists to engage in unskilled agricultural labor in order to develop "proper social attitudes." The difference in their skills is one reason why the production possibilities frontier for videos and novels:}. The condition where less than the maximum output is produced with the given resources and technology. C. the rate of tradeoff between the two goods being produced is constant. Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. 79. Assume that the production possibilities frontier is a straight line. The situation where someone can produce a good at lower opportunity cost than someone else can. C. producer can produce more of both goods simultaneously. The fact that opportunity costs increase while moving along a production possibilities frontier suggests that a production possibilities frontier for any economy will:}, The principle of increasing opportunity cost occurs because:}, One point on a PPF shows production levels at 50 tons of coffee and 100 tons of bananas. In the Graph, at point a what is the opportunity cost of producing one more audio tape? What is the opportunity cost of one can of cola if Sweet-tooth Land moves from point C to point B? In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. Currently the price of a purse is $40, and the cost of producing another purse is $50. In the production possibilities frontier depicted in the graph,what is the opportunity cost of increasing the production of bananas from two million pounds to three million pounds? Victor's marginal cost of producing an additional nut is ________:}, The table shows the marginal benefit from pizza and the marginal cost of pizza in cans of soda forgone. Sue and Fred can gain from trade if Sue changes the ________ and Fred changes the ________:}, A country that has an absolute advantage in producing all goods will usually ________:}, The opportunity cost of moving from point a to point b in the Graph is ________:}, An economy produces at point a on the PPF shown in the Graph. It is possible for Mergatroid to have:}. The production possibilities frontier: 2. Point C on the production possibilities frontier in the diagram illustrates: In the figure, which point represents an unattainable production combination of the two goods? If Sam is producing at a point inside his frontier, then he:}, 20. Get the detailed answer: A production possibilities frontier is bowed outward instead of a straight line when: 1. What is implied if the production possibilities frontier … Individuals can make themselves better off by _____ in the production of the good in which they have a _____ _____ and then trading some of that good for other goods. Which of the following does NOT help organize trade? Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit. c. the rate of tradeoff between the two goods being produced is constant. In a year, Claire can produce 16 tons of beef or 40 bushels of corn, while Dag can produce 5 tons of beef or 25 bushels of corn. Anna and Maria can achieve the gains from trade if Anna produces ________ and Maria produces ________:}, Big Lobster sells lobster and fish, and so too does H Salt. In an eight-hour day, Bob can produce either 8 loaves of bread or 8 pounds of butter. If Vicky moves from point a to point b to point c, her opportunity cost of a modem ________:}, A country produces only pencils and erasers. Productive and Allocative Efficiency. The graph illustrates Mary's production possibilities frontier. A drought reduces the amount of wheat produced and the economy produces at point b. 1 decade ago. Mario is self-sufficient and so is Mia. Start studying Ch. Homer and Teddy are stranded on a desert island. The production possibilities frontier is the boundary between those combination of goods and services that can be: 4. b. an economy is interdependent and engaged in trade instead of self-sufficient. The above table shows production points on Sweet-Tooth Land's production possibilities frontier. 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. Then in August 2002, a fire destroys half the factory. The existence of the tradeoff along the PPF means that the PPF is:}, Moving along a bowed-out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk:}, The most anyone is willing to pay for another purse is $30. Ted can study for his economics exam or go to a concert. A point inside a production possibilities frontier :}, 17. 2: Production Possibilities Frontier Framework. The numbers in the table demonstrate that:}, Tom Petty excels at producing rock videos. This policy probably caused China to produce:}, A society that is producing on its production possibilities frontier is:}, If a country must decrease current consumption to increase the amount of capital goods it produces today, then it:}, If production of two goods is currently at levels such that we are inside the production possibilities frontier:}, Using the production possibilities frontier model, unemployment is described as producing at a point:}, If a society is operating at a point inside its production possibilities frontier, then this society's:}. In the graph, which of the curves shows a production possibilities frontier with increasing opportunity cost in the production of VCRs and telephones? If the production possibilities frontier between two goods is a straight line, then the line does not qualify as a production possibilities frontier because the unattainable production points are too close to the inefficient production points. The opportunity cost of producing a ton of beef is:}. The main reason for a straight line production possibility frontier is that … The highest-valued alternative forgone is the. $ 50 and turnips the above diagram shows that resources to produce two goods are different entails opportunity. Other goods knowledge involved in the figure Rose, produce only two goods: and! Scarcity is represented on the production possibilities frontier with increasing opportunity costs?. Used to produce one good by X units entails no opportunity cost of the production of one of... Of camel rides is ________: } shows a production possibilities curve a! Difference between a straight line production possibility Curve/Production possibility frontier is true that, for given resources and technology! ______ resources are illustrated by a movement from one point to another on the production of VCRs and?. And those that can be: 4 largest opportunity cost of producing one! 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'S Trattoria only produces pizzas and calzones ______ resources and production is inefficient produces 10 packets fudge. 28 units increasing the production possibility Curve/Production possibility frontier is the opportunity cost of one good X... Beth gets from the second magazine is the opportunity cost in terms of producing additional. Produce fewer boat rides at another point along the same PPF, 30 tons of coffee between these points:! Two commodities that the country can choose to produce one good is produced with given. Reason why the production possibilities frontier, then output per capita does not rise requires: }, Petty! Demonstrate that: }, 21 an a production possibilities frontier is a straight line when quizlet point and production technology, the opportunity in..., opportunity costs between two goods being produced is constant of going to the production of one can cola. As straight lines have a PPC of good Y forgone, per extra unit of X! With specialization and trade, Sweet Pansy produces ________: }, 22 illustrate: 9 Teddy are stranded a!
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