Which of the following statements is true?
a. In a world of efficiently used scarce resources, more of one good necessarily means less of some other good.
b. The law of increasing opportunity costs assumes that all people have the same ability to produce goods.
c. Efficiency implies that it is impossible to get more of one good without getting less of another.
d. Even if a country has unemployed resources, it can still be operating on its production possibilities frontier (PPF).
e. a and c
ANS: E
Production Possibilities Frontier Framework
- Refer to Exhibit 2-9. For Adam, the opportunity cost of producing one unit of good A is __ unit(s) of good B.
- Refer to Exhibit 2-9. For Adam, the opportunity cost of producing one unit of good B is __ unit(s) of good A.
- Refer to Exhibit 2-9. For Alex, the opportunity cost of producing one unit of good B is __ unit(s) of good A.
- Refer to Exhibit 2-9. For Alex, the opportunity cost of producing one unit of good A is __ unit(s) of good B.
- Refer to Exhibit 2-9. If Alex and Adam each specialize in the good in which he has a comparative advantage and then engage in trade, ____ can consume a combination of goods that lies beyond his PPF.
- Refer to Exhibit 2-9. Who has the comparative advantage in the production of good B?
- Refer to Exhibit 2-9. Who has the comparative advantage in the production of good A?
- Refer to Exhibit 2-8. For Maria, the opportunity cost of producing one unit of good Y is ___________ unit(s) of good X.
- Refer to Exhibit 2-8. For Maya, the opportunity cost of producing one unit of good Y is ___________ unit(s) of good X.
- Refer to Exhibit 2-8. For Maria, the opportunity cost of producing one unit of good X is ___________ unit(s) of good Y.
- Refer to Exhibit 2-8. For Maya, the opportunity cost of producing one unit of good X is ___ unit(s) of good Y.
- Refer to Exhibit 2-8. If Maria and Maya each specialize in the good in which she has a comparative advantage and then engage in trade, _______ can consume a combination of goods that lies beyond her PPF.
- Refer to Exhibit 2-8. Who has the comparative advantage in the production of good Y?
- Refer to Exhibit 2-8. Who has the comparative advantage in the production of good X?
- The PPF between goods X and Y will be a downward-sloping
- Suppose Andrea is taking just two courses and is at a point inside her PPF of grades for those two courses. If Andrea changes her work habits then it is impossible for
- Suppose Andrea is taking just two courses and is at a point on her PPF of grades for those two courses. Now this PPF shifts inward and Andrea moves to a point on the new PPF. Then it is impossible for
- Between 1910 and today, the number of farmers in the United States __ dramatically as a result of ___ in farming in the twentieth century.
- A person has a comparative advantage in the production of a good when they can produce the product at a(n) ________ opportunity cost compared to another person.
- Michael can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. Vernon can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. It follows that
- Keisha can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. The opportunity cost of one unit of Y for Keisha is
- Carlos can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. The opportunity cost of one unit of X for Carlos is
- If Sean can bake bread at a lower opportunity cost than Jason, and Jason can produce paintings at a lower opportunity cost than Sean, it follows that
- Country 1 produces two goods, A and B. Country 2 produces the same two goods. Currently, country 1 produces 100A and 200B and country 2 produces 300A and 700B. Which of the following statements is true?
- Country X has a high unemployment rate. It follows that country X is operating