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The Economic Problem3

CLICKER QUESTIONS

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Question 1Question 1

Question 2Question 2

Question 3Question 3

Question 4Question 4

Question 5Question 5

Question 7Question 7

Question 8Question 8

Question 6Question 6 Question 9Question 9

Question 10Question 10

Checkpoint 3.1

Checkpoint 3.2

Checkpoint 3.3 Checkpoint 3.4

CHECKPOINT 3.1

A. unattainable and have fully employed resources

B. attainable and have fully employed resources

C. unattainable and have some unemployed resources

D. attainable and have some unemployed resources

E. unaffordable and productive resources are misallocated

Question 1Points inside the PPF are all ___________.

CHECKPOINT 3.1

A. the existence of a tradeoff between goods produced

B. unemployment of productive resources.

C. the existence of free lunches.

D. how the efficiency of production changes with tradeoffs

E. how tradeoffs do not occur if the production is efficient.

Question 2Moving along the production possibilities frontier itself illustrates _________.

CHECKPOINT 3.2

A. 4 laptop computers

B. 8 desktop computers

C. 1 desktop computer

D. 2 laptop computers

E. 1/2 of a laptop computer

Question 3Moving along its PPF, a country produces 8 additional desktop computers and its production of laptop computers decreases by 4. The opportunity cost of 1 desktop computer is _______.

CHECKPOINT 3.2

A. can increases

B. can decreases

C. can is constant, but the opportunity cost of an additional bottle increases

D. bottle increases

E. can or an additional bottle increases

Question 4A country produces only cans and bottles. If the country produces on its PPF and increases its production of cans, the opportunity cost of an additional ______.

CHECKPOINT 3.3

A. its economic growth will slow down

B. its production possibilities will expand

C. its production possibilities will shrink

D. some factors of production will become unemployed

E. it must producing at the efficient point on its PPF

Question 5If a nation devotes a larger share of its current production to consumption goods, then ________.

CHECKPOINT 3.3

A. increased; increased

B. increased; decreased

C. no loss of; increased

D. decreased; increased

E. decreased; decreased

Question 6The opportunity cost of economic growth is ____ current consumption and the benefit of economic growth is ____ future consumption.

CHECKPOINT 3.3

A. 1/2 of a pizza

B. 1 pizza

C. 2 pizzas

D. 20 pizzas

E. 2 tacos

Question 7In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Scott’s opportunity cost of producing 1 taco is ________.

CHECKPOINT 3.4

A. Cindy has a comparative advantage in producing tacos.

B. Scott has a comparative advantage in producing tacos.

C. Both Cindy and Scott have a comparative advantage in producing tacos.

D. Neither has a comparative advantage in producing tacos.

E. Scott has a comparative advantage in producing pizzas.

Question 8In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos.

CHECKPOINT 3.4

A. only loaves; only cakes

B. only cakes; only loaves

C. both loaves and cakes; only loaves

D. only cakes; both loaves and cakes

E. both loaves and cakes; both loaves and cakes

Question 9In one hour John can produce 20 loaves of bread or 8 cakes and Phyllis can produce 30 loaves of bread or 15 cakes. John and Phyllis will reap the largest gains from specialization and trade if John produces _____ and Phyllis produces ______.

CHECKPOINT 3.4

A. 6 shirts and 6 blouses

B. 4 shirts and 6 blouses

C. 6 shirts and 2 blouses

D. 4 shirts and 4 blouses

E. 2 shirts and 2 blouses

Question 10If Sue and Mark reap the maximum gains from trade, together they produce ______.