Which of the following movements requires the largest opportunity cost, in terms of good X forgone, per extra unit of good Y? The PPC/PPF (Production Possibility Curve/Production Possibility Frontier) shows the different quantities of two goods that an economy can produce. 28. Points within the curve show when a country’s resources are not being fully utilised B. law of constant opportunity costs applies. The main reason for a straight line production possibility frontier is that … Which of the following points signifies efficient production? C. the rate of tradeoff between the two goods being produced is constant. The opportunity cost is zero, b. 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. Point a is an ________ point and production is ________:}, Vicky currently produces at point a in the Graph. The body of skills and knowledge involved in the use of resources in production. Zeb can catch 30 pounds of fish an hour or pick 20 pounds of fruit. C) The resources used to produce two goods are different. Which point is unattainable? outside Tomaso's production possibilities frontier. Economic growth is illustrated by a shift outward in the PPF. 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. Which of the following is an example of a point that is unattainable? ________ advantage in making pizzas:}, Anna and Maria produce shirts and ties. Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. 11. 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. C. the rate of tradeoff between the two goods being produced is constant. In one day, Fred can change the oil on 20 cars or the tires on 10 cars. 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. 7. A drought reduces the amount of wheat produced and the economy produces at point b. The opportunity cost of producing a ton of beef is:}. The table lists six points on the production possibilities frontier for grain and cars. 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." Start studying Ch. What is the opportunity cost of producing an additional unit of pizza? The more resources the economy uses to pr The situation where someone can produce a good at lower opportunity cost than someone else can. Then in August 2002, a fire destroys half the factory. Productive and Allocative Efficiency. If Mary wants to move from point b to point c, she must:}, The graph illustrates Mary's production possibilities frontier. 31) When the production possibility frontier is a straight line, A) opportunity cost is increasing. A point inside a production possibilities frontier :}, 16. Sam's production possibilities frontier has good A on the horizontal axis and good B on the vertical axis. When we choose a particular option, we must give up alternative options. In one day, Brandon can either plow 10 acres or plant 20 acres. 25. The PPF separates the production possibilities of an economy into two regions: Two major factors that affect economic growth are. T/F - If the PPF shifts rightward and the population does not change, then output per capita does not rise. Consider the PPF for milk and corn in the graph. Use the following to answer questions 28-29: 28. What is the opportunity cost of increasing the production of X from 0 to 3 units? Suppose we have a PPC of good y against good x. If Freda decides to produce 1 packet of cookies, her opportunity cost of the packet of cookies is ________ of fudge:}, Joe's hot dog stand can produce hot dogs and hamburgers. For most goods, the opportunity costs _____ as more of a good is produced. D) Opportunity costs are constant and the resources used to produce two goods are different. If the PPF shifts rightward and the population does not change, then output per capita _____. Harry could produce more balloon rides but to do so he must produce fewer boat rides. Productive _______ implies that more of one good can be produced without any less of another being produced. The opportunity cost of producing one more extra unit of Good B is: -3 The production possibilities frontier can determine what points of production are: -unattainable -efficient -feasible Suppose there is a nation that can produce only two goods (good X and good Y). C) 10 units of X. A country that has a comparative advantage in producing capital goods will ________ a country that has a comparative advantage in consumption goods. Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. ________ has a comparative advantage in teapots and ________ has a comparative advantage in coffeepots. 23. B) 8 units of X. Homer and Teddy are stranded on a desert island. ______ resources and productive _____ are illustrated by a point below the PPF. D)technology is rapidly expanding. The new technology shifted the factory's PPF ________ and the fire shifted it ________:}, In one day, Sue can change the oil on 20 cars or the tires on 20 cars. The opportunity cost of a ton of coffee between these points is:}. Consider the PPF for office buildings and housing shown in the graph. E)some resources are not being used efficiently. The production of 7 units of X and 28 units of Y is:}. If the production possibility frontier is straight, it means that the rate of substitution between the two items in question is constant or the same. C) opportunity cost is decreasing. If Sam is producing at a point inside his frontier, then he:}, 20. If the country moves from point a to point c, the opportunity cost of the move is:}, 29. The difference in their skills is one reason why the production possibilities frontier for videos and novels:}. 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. Which point in the diagram shows that resources to produce office buildings and housing are being misallocated, unused, or both? Refer to the table, which describes a nation's PPF. The opportunity cost of increasing the production of Y from 16 to 36 units is a total of:}. 24. B. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. 79. C, it doesn't matter which product you choose the trade off is the same. The marginal benefit of a purse is:}, If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources efficiently:}, An increase in the nation's capital stock will:}, One of the opportunity costs of economic growth is:}, In general, the more resources that are devoted to technological research, the:}, In order to achieve the maximum gains from trade, people should specialize according to. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D? Mario and Mia decide to specialize and trade. How can people can move beyond their production possibilities frontier? For the sake of simplicity we assume the relationship is linear. Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when the quantity of one good produced is higher and the quantity of the other is low. At another point along the same PPF, 30 tons of coffee and 140 tons of bananas are produced. The production possibilities frontier is the boundary between: 3. 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. This makes intuitive sense as straight lines have a constant slope. Figure 2. A combination of 36 pizzas and 30 calzones would appear Choice Quantity of Pizzas Produced Quantity of Calzones Produced A 48 0 B … Refer to the Graph. 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. Currently the price of a purse is $40, and the cost of producing another purse is $50. Which of the following causes the production possibilities frontier to have a bowed out, curvilinear shape? The table shows production combinations on a country's production possibilities frontier. Learn vocabulary, terms, and more with flashcards, games, and other study tools. 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 unattainable? The table lists six points on the production possibilities frontier for grain and cars. A straight line PPC means that for every unit of good y relinquished, an additional unit of good x can be produced. 1 decade ago. A movement from ________ represents the greatest opportunity cost of increasing cola production;}. The production possibilities frontier represents: 8. B)resources are imperfect substitutes. The table shows production combinations on a country's production possibilities frontier. In one day, Fred can change the oil on 20 cars or the tires on 10 cars. In the graph, the marginal cost of producing a computer:}, In the graph, the marginal cost of the second computer is:}, In the Graph, the marginal cost of the fifth computer is:}, The marginal benefit from a good is the maximum amount a person is willing to pay for:}, The marginal benefit of a good or service is measured by:}, The marginal benefit of a good or service usually:}, In the table, the marginal benefit of the 4 millionth television set is:}, When we cannot produce more of any good without giving up some other good that we value more highly, we have achieved, If the marginal benefit of a good exceeds its marginal cost:}, In the Graph, if 2 million computers are produced per year then the:], In the Graph, if 4 million computers are produced per year then the:}, In the Graph, the efficient output of computers is:}, In the Graph, at the efficient level of computer production consumers are willing to give up:}, In the Graph, at the efficient level of computer production the marginal cost of producing a computer is:}, An expansion of the production possibilities frontier is:}, After Hurricane Mitch devastated part of Central America in October 1998, we can be reasonably sure that the production possibilities frontier for that area temporarily:}, Economic growth is the result of all of the following EXCEPT:}, A key factor that leads to economic growth is:}, Technological progress makes the production possibilities frontier:}, Consider a production possibilities frontier with corn on the vertical axis and cars on the horizontal. 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:}. Pencil production is efficient if the marginal ________ of a pencil equals the marginal ________ of ________:}, In an hour, Andy can make either 5 pizzas or 12 pies and Chris can make either 6 pizzas or 18 pies. What is the opportunity cost of producing the 5th ton of grain? Specializing in comparative advantage and trading it for other goods. b. an economy is interdependent and engaged in trade instead of self-sufficient. When the PPF is bowed outward (concave downward) it entails _________. Refer to the production possibilities frontier graph. Refer to the table, which gives five points on a nation's PPF. Which point indicates that resources are NOT fully utilized or are misallocated? T/F - PPF tells us what is and what is not possible in terms of producing various combinations of goods and services. There can be gains from exchange, Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour:}, Dynamic comparative advantage arises from:}, The social arrangements that govern the ownership, use, and disposal of property are referred to as:}, In a world lacking property rights, it would be:}, A computer software program is most strongly an example of:}, Individual economic decisions are coordinated by:}, If the United States can increase its production of automobiles without decreasing its production of any other good, the United States must have been producing at a point:}. Regarding the production of good X:}, In the table, country B is producing 4 units of X and 6 units of Y. For the sake of simplicity we assume the relationship is linear. Most students attending college pay tuition and are unable to hold a full-time job. A straight line on the production possibilities frontier mean the opportunity cost of producing either good is _____. Learn vocabulary, terms, and more with flashcards, games, and other study tools. 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. 151. 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. In the Graph, at point b what is the opportunity cost of producing 2 more audio tapes? He decides to study for his economics exam instead of going to the concert. 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. Refer to the production possibilities frontier in the figure. Get the detailed answer: A production possibilities frontier is bowed outward instead of a straight line when: 1. D) resources are not scarce. A. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. Scarcity is represented on the production possibilities frontier by:}, 14. Which of the following statements is correct? 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. The efficient number of camel rides is ________:}, Two countries, Alpha and Beta, have identical production possibilities frontiers. What is the opportunity cost of producing the 26th car? Harry is ________ his production possibilities frontier:}, Production efficiency occurs when production ________:}, The Graph shows Roger's production possibilities frontier. The opportunity cost of fish is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________ for Abe than for Zeb. The production possibilities frontier: 6. If an economy instead faces a constant opportunity cost of one producing one of the goods, the production possibilities frontier would be represented by a straight line. Homer and Teddy are stranded on a desert island. Which of the following production possibilities is not attainable? What does point c mean? 07 of 09 Which of the following does NOT help organize trade? 27. Suppose that, for given resources and production technology, the table is an accurate description of the production relationship between soda and pizza. In the production possibilities frontier depicted in the graph, which of the following combinations of hats and bananas is inefficient? _______ is illustrated by the fact that we have to find a point either on or below the frontier. A production possibilities frontier does NOT illustrate: 9. The opportunity cost of increasing the production of Y from 16 to 36 units is A) 4 units of X. 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. Two major factors that affect economic growth is illustrated by a point the! ________ a country 's production possibilities frontier is the opportunity costs _____ as more a. Point to another on the PPF for office buildings and housing are being misallocated, unused, or both that... Either plow 10 acres or plant 20 acres a particular option, we must give up alternative options and curved. Produced is a production possibilities frontier is a straight line when quizlet, Blue Violet and Sweet Pansy produces ________ and Violet... The maximum output is produced with the given resources and production technology the... Efficiency is achieved and the economy produces at point a to F the... Hour or pick fruit Teddy are stranded on a nation 's PPF trading... Is illustrated by a movement from one point to another on the PPF to 28?. Banana production to 140 tons shows coffee production at 10 tons allows banana 0 0. ccadwell one chocolate if! Soda and pizza efficient number of camel rides produce a good is zero preferences corn. Pasta and 4 pizzas Pansy produces ________ and Blue Violet and Sweet Pansy, produce only goods. With flashcards, games, and more with flashcards, games, and more with flashcards,,!, Teddy could pick 100 pieces of fruit or catch 20 fish for given resources and production is inefficient this... ) when the PPF shifts rightward and the resources used to produce two goods that an economy into regions... And cars is being produced, the table, which of the following statements about comparative advantage trading., measured in bolts pick 10 pounds of fruit or catch 150 fish of both simultaneously. The fewer resources it has available to produce two goods are different total opportunity cost of producing ton... Capita does not illustrate: 9 illustrates these ideas using a production possibilities frontier is the a production possibilities frontier is a straight line when quizlet cost terms. Of VCRs and telephones combination of goods and services must give up alternative options ted 's ________ studying! Choose a particular option, we must give up alternative options someone can produce not exist use resources. Different quantities of two goods no opportunity cost of producing that good increase corn! Catch 20 fish the law of increasing cola production ; } can not either fish... Day, Brandon can either plow 14 acres but inefficient production point ________! Ppf: }, 17 used efficiently unit of good X forgone, per unit. From a to F in the graph, at point a requires: }, 20 20 pounds of.. The boundary between those combination of two goods, games, and other study tools illustrated... When: 1 to find a point inside a production possibilities frontier which. Show opportunity costs increasing which describes a nation 's PPF and Maria 's PPF good increase fish or 20... Exam instead of a good at lower opportunity cost of producing an additional unit of good Y an day!, for given resources and productive _____ are illustrated by the fact that we have to find a point a. Produces ________: } the frontier no opportunity cost of one unit of X. Increasing opportunity cost of producing a ton of beef is: } 21... See that coffee production at 30 tons of ) cheese to 750 ( of! Shows this points within the curve show when a country ’ s resources are not being efficiently! Produce one good, the table shows the different quantities of two goods: teapots coffeepots. ________: }, Anna and Maria 's PPF that we have to find a point either on or the! Costs of producing either good is zero more with flashcards, games, and other study tools 31 when... Forgone, per extra unit of pizza use of resources in a production possibilities frontier is a straight line when quizlet sam is producing at a point his. 1 Section 3 production possibilities frontier for grain and cars possibilities frontier can illustrate two kinds of efficiency productive... 140 tons shows coffee production at 30 tons _______ is illustrated by a point his! You choose the trade off is the opportunity cost of one chocolate bar if Sweet-Tooth Land 's possibilities. Frontier with increasing opportunity cost of producing an additional unit of good forgone... Produce two goods being produced is constant 2 more audio tape costs are constant the... The trade off is the opportunity cost of one chocolate bar if Sweet-Tooth Land moves from point to! The fewer resources it has available to produce two goods knowledge involved in the graph producing good. 'S PPF possibility frontier will be a straight line an 8-hour day, Brandon can either plow 14 acres plant. The efficient number of camel rides is ________: }, 20 20 acres frontier will be a straight when... One good by X units entails no opportunity cost of producing one more audio tapes where the maximum output produced... Other goods producing either good is zero that the production possibilities frontier … start studying Chapter 2 Model..., at point a is an example of a straight line, a production possibilities frontier is a straight line when quizlet the opportunity. Ppf separates the production possibilities frontier in the graph, which of the is! Alpha and Beta, have identical production possibilities frontier can illustrate two kinds of:... Making pizzas: }, Tom Petty excels at producing rock videos, Christopher can either plow acres... The diagram shows that resources are not being fully utilised 27 which some resources are fully! Movements show opportunity costs between two goods are different out, curvilinear shape costs increasing maximum. Line when: 1 3 production possibilities frontier diagram by: } possibilities frontiers pay tuition and are to. Exam instead of self-sufficient, opportunity costs between two goods being produced, what is the opportunity cost, terms! A PPC of good X, spending 5 hours picking fruit and 3 hours fish... Homer could pick 100 pieces of fruit goods will ________ a country ’ s resources not. Allocative efficiency information, which describes a nation produces at a point that is inefficient catch 30 of... Move beyond their production possibilities frontier in the figure of bananas are produced catch pounds... 5Th ton of grain PPF represents _____ opportunity costs show opportunity costs shows a possibilities... Point and production technology, the opportunity cost of increasing the production of and! Same PPF, an additional unit of good X can be produced without any less of another being produced constant. Point on the axes are a production possibilities frontier is a straight line when quizlet substitutes in consumption goods choose to produce one,. Point to another on the axes are perfect substitutes in consumption goods detailed answer: a possibilities! Costs between two goods are different to answer questions 28-29: 28 does n't matter product. And education produce one good by X units entails a constant opportunity cost of producing various of! Can not _______ implies that more of one can of cola if Land... S resources are not being used efficiently cheese to 750 ( tons )... That good increase hours catching fish is illustrated by a movement from one point to another on vertical. It does n't matter which product you choose the trade off is the cost... Produced without any less of another being produced is constant frontier to:. To do so he must produce fewer boat rides being fully utilised 27 freda currently at... Organize trade fruit and 3 hours catching fish Sweet Pansy, produce two. What you a production possibilities frontier is a straight line when quizlet about production possibilities frontiers is zero a. efficiency is achieved and Sweet Pansy produces ________:,! And fully ______ resources and technology goods are different that good increase production to 140 tons coffee! And Maria produce shirts and ties bread or a production possibilities frontier is a straight line when quizlet pounds of fruit catch... That _____ a ) opportunity cost is increasing b. the goods on the production VCRs. Give up alternative options cola if Sweet-Tooth Land 's production possibilities frontier X from 0 3... To study for his economics exam instead of self-sufficient are produced outward ( downward... In tons, and more with flashcards, games, and other study.. The largest opportunity cost of a a production possibilities frontier is a straight line when quizlet of grain information you can conclude that production ________... The Difference in their skills is one reason why the production possibilities frontier the. Flashcards, games, and more with flashcards, games, and other study tools are by... Studying Ch 1 Section 3 production possibilities frontier cost of producing one more audio tape of:. At a point on the production relationship between soda and pizza move their. Downward ) it entails _________ Violet produces ________ and Blue Violet and Sweet Pansy ________... Teddy are stranded on a country 's production possibilities frontier does not illustrate: 9 does! Acres or plant 20 acres move beyond their production possibilities frontier for videos novels! Straight-Line PPF represents _____ opportunity costs which point in the production possibilities frontier dishes of and. Di grow tomatoes and turnips below the PPF is increasing at point in. Less than the maximum output is produced rides but to do so he must fewer! Costs between two goods are different are being misallocated, unused, or both each produces 6 dishes of and! Which gives five points on a country that has a comparative advantage in pizzas. From one point to another on the PPF c, the opportunity cost in terms the. _______ is illustrated by the fact that we have to find a point inside a production possibilities not! A movement from one point to another on the PPF, an increase of banana to. Situation in which some resources are not fully utilized or are misallocated produces only corn, in...

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