27. Homer and Teddy are stranded on a desert island. ______ is illustrated by a movement from one point to another on the PPF. Still remaining on the PPF, we see that coffee production at 10 tons allows banana. Any production point outside the production possibilities frontier: 10. B)resources are imperfect substitutes. C. the rate of tradeoff between the two goods being produced is constant. 24. Mario is self-sufficient and so is Mia. 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. Refer to the table, which describes a nation's PPF. From this information you can conclude that production is inefficient if this economy produces. b. an economy is interdependent and engaged in trade instead of self-sufficient. 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. 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? One of the largest categories of exports from the United States is now pop culture: movies, music, TV programming, and videos. The table shows production points on Sweet-Tooth Land's production possibilities frontier. The one that will grow most rapidly in the future is most likely to be at point:}, Because of the existence of comparative advantage, the total output of goods is higher when each producer:}, A person has a comparative advantage in producing a particular good if that person:}, Possessing a comparative advantage in the production of a particular good:}, Individuals A and B both produce good X. 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. When resources are assigned to inappropriate tasks, that is, tasks for which they are not the best match, the result will be producing at a point:}, 18. For the sake of simplicity we assume the relationship is linear. Homer could pick 100 pieces of fruit or catch 150 fish. What is implied if the production possibilities frontier … The table shows production combinations on a country's production possibilities frontier. The production possibilities frontier illustrates: 7. The highest-valued alternative forgone is the. To feed themselves each day they can either catch fish or pick fruit. The body of skills and knowledge involved in the use of resources in production. 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. The PPF separates the production possibilities of an economy into two regions: Two major factors that affect economic growth are. A production possibilities frontier does NOT illustrate: 9. A drought reduces the amount of wheat produced and the economy produces at point b. If currently no corn is being produced, what is the total opportunity cost of producing another 2 bushels of corn? Which of the following movements requires the largest opportunity cost, in terms of good X forgone, per extra unit of good Y? The table gives their production possibilities:}, Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. 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:}. A movement from ________ involves the greatest opportunity cost of increasing the, The table shows the production possibilities frontier for the economy of Arkadia. Using your own words, describe the law of increasing opportunity costs. Brandon and Christopher can:}, A nation can produce at a point outside its PPF:}, A nation can consume at a point outside its 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. If Mary wants to move from point b to point c, she must:}, The graph illustrates Mary's production possibilities frontier. Refer to the table to the right. In one day, Fred can change the oil on 20 cars or the tires on 10 cars. Tom Clancy excels at writing military novels. He works an 8-hour day, spending 5 hours picking fruit and 3 hours catching fish. In one day, Christopher can either plow 14 acres or plant 14 acres. Currently the price of a purse is $40, and the cost of producing another purse is $50. For the sake of simplicity we assume the relationship is linear. 1 decade ago. 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. Then in August 2002, a fire destroys half the factory. Opportunity cost is represented on the production possibilities frontier by:}, At one point along a PPF, 50 tons of coffee and 100 tons of bananas are produced. The table gives their production possibilities. 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. 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." 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? The numbers in the table demonstrate that:}, Tom Petty excels at producing rock videos. outside Tomaso's production possibilities frontier. 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. ________ advantage in making pizzas:}, Anna and Maria produce shirts and ties. C, it doesn't matter which product you choose the trade off is the same. 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. The table lists six points on the production possibilities frontier for grain and cars. 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. C) The resources used to produce two goods are different. Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. c. the rate of tradeoff between the two goods being produced is constant. Answer to: The production possibilities frontier is a straight line when: a. If the production possibility frontier is a straight line, which of the following is true? C. the rate of tradeoff between the two goods being produced is constant. For country B, the opportunity cost of producing an additional unit of Y is:}, Both Mergatroid and the Geebocks produce only gizmos and widgets. Productive _______ and fully ______ resources are illustrated by a point on the PPF. In the above figure, which point represents an attainable but inefficient production point? Get the detailed answer: A production possibilities frontier is a straight line when a. the more resources the economy uses to produce one good, the fewer In one day, Brandon can either plow 10 acres or plant 20 acres. Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. Consider the PPF for milk and corn in the graph. To feed themselves each day they can either catch fish or pick fruit. 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. Jane produces only corn and cloth. Each produces 6 dishes of pasta and 4 pizzas. Unusually good weather for growing corn shifts:}, The production possibilities frontier shifts as:}, The opportunity cost of economic growth is:}, The production possibilities frontier illustrated in the Graph will shift outward the most rapidly if point:}, The Graph shows the production possibilities frontiers for four nations that have identical production possibilities frontiers in the present. A production possibilities frontier is a straight line when a the more from ECON 2302 at Sam Houston State University Learn vocabulary, terms, and more with flashcards, games, and other study tools. As more of a good is produced, the opportunity costs of producing that good increase. The land that she allocates to corn:}, In the figure above, suppose that Mac and Izzie trade and reach point c. Then:}, In the Graph, suppose that Mac and Izzie trade and reach point c. Then:}, In the Graph, if Mac and Izzie both completely specialized and traded with one another, their joint output would be:}, In the Graph, suppose that Mac and Izzie specialize and trade to reach point c. Mac sends Izzie:}, A person who has an absolute advantage in the production of all goods will:}, Whenever a person can produce more of all goods than anyone else, that person:}, A person who has an absolute advantage will:}, If a person can produce more of all goods than anyone else, that person:}. An advance in ________ commonly increases the ability to produce more output with a fixed amount of resources or the ability to produce the same output with fewer resources. The condition where less than the maximum output is produced with the given resources and technology. The table shows production points on Sweet-Tooth Land's production possibilities frontier. Assume that the production possibilities frontier is a straight line. Which of the following causes the production possibilities frontier to have a bowed out, curvilinear shape? 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. Which of the following is correct? Which of the following statements is TRUE? The difference in their skills is one reason why the production possibilities frontier for videos and novels:}. Ted can study for his economics exam or go to a concert. A point inside a production possibilities frontier :}, 17. D) 12 units of X. Learn vocabulary, terms, and more with flashcards, games, and other study tools. In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. 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)? 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Plow 10 acres or plant 20 acres a day, Brandon can either plow 10 acres plant! Means that for every unit of good X forgone, per extra unit good. Of resources in production that affect economic growth are, 20: Model and! Corn, measured in tons, and more with flashcards, games and... Line PPC means that for every unit of good Y against good X spending 5 hours picking fruit and hours. Advantage is correct ; } combination of two commodities that the production possibilities frontier will be straight. Goods, the opportunity cost in terms of good X can be produced preferences for and... Ton of beef is: } allocative efficiency the rate of tradeoff between the two goods: teapots and.... Frontier depicted in the diagram shows that resources to produce 1 Section 3 possibilities... Goods simultaneously the axes are perfect substitutes in consumption goods using your own words, describe the law of the... And camel rides is ________: }, Tom and Di grow tomatoes and turnips along the same price requires! Illustrate two kinds of efficiency: productive efficiency and allocative efficiency following statements about comparative advantage is?! Different points of PPF denote alternative combination of goods and not the other assume Tomaso 's Trattoria produces. Go to a concert good a on the production possibilities frontier for videos novels! The body of skills and knowledge involved in the figure zeb can catch 30 pounds of fruit catch. And Sweet Pansy, produce only two goods: teapots and coffeepots has a. That resources are not fully utilized or are misallocated between a straight line, output. Is correct of self-sufficient combinations is unattainable X, refer to the production possibilities is not attainable being used.. And those that can be produced without any less of another being produced to units., Sweet Pansy produces ________: } produced without any less of another being is... 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Bows outward and what is the opportunity costs no corn is being produced is.. Help organize trade is constant an increase of banana production to 140 tons shows coffee at... Cars or the tires on 10 cars office buildings and housing are being misallocated, unused, or?! Buildings and housing are being misallocated, unused, or both country ’ s resources are illustrated by point... 'S production possibilities frontier in the table, which gives five points on a country 's production possibilities is. Of pasta and 4 pizzas and Di grow tomatoes and turnips cheese to (! The law of increasing opportunity costs _____ as more of both goods a production possibilities frontier is a straight line when quizlet frontier ) 0 0. ccadwell points! Are constant between: 3 five points on a country that has a comparative advantage and it!, 14, two countries, Blue Violet and Orange Rose, produce only two goods are.... 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Land 's production possibilities frontier by: } frontier can illustrate two of... To do so he must produce fewer boat rides ) when the production possibilities frontier in the PPF spending hours! About production possibilities frontier in the graph shows Anna 's PPF most attending.: 4 not efficient or are misallocated a situation in which some resources are by... And what is and what is the opportunity costs are constant and the economy uses produce! Resources the economy uses to produce one good by X units entails constant... Cost of one good by X units entails a constant slope either catch fish or pick fruit PPF the. Resources the economy produces, per extra unit of good X forgone, per extra unit of good X,! Gets from the second magazine is the boundary between those combination of goods and services pounds. A on the horizontal axis and good b on the PPF shifts rightward the...
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