Q&A Hero

Q: Table 2-11One MotorcycleOne GuitarIreland20 hours4 hoursScotland8 hours2 hoursTable 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.Refer to Table 2-11. Ireland has a comparative advantage in the production ofA) both products.B) guitars.C) motorcycles.D) neither product.

Q: Table 2-11One MotorcycleOne GuitarIreland20 hours4 hoursScotland8 hours2 hoursTable 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.Refer to Table 2-11. What is Scotland's opportunity cost of producing one guitar?A) 0.25 motorcycleB) 4 motorcyclesC) 12 motorcyclesD) 16 motorcycles

Q: Table 2-11One MotorcycleOne GuitarIreland20 hours4 hoursScotland8 hours2 hoursTable 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.Refer to Table 2-11. What is Ireland's opportunity cost of producing one guitar?A) 0.2 motorcycleB) 5 motorcyclesC) 8 motorcyclesD) 32 motorcycles

Q: Table 2-11One MotorcycleOne GuitarIreland20 hours4 hoursScotland8 hours2 hoursTable 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.Refer to Table 2-11. What is Scotland's opportunity cost of producing one motorcycle?A) 0.25 guitarB) 4 guitarsC) 12 guitarsD) 16 guitars

Q: Table 2-11One MotorcycleOne GuitarIreland20 hours4 hoursScotland8 hours2 hoursTable 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.Refer to Table 2-11. What is Ireland's opportunity cost of producing one motorcycle?A) 0.2 guitarB) 5 guitarsC) 8 guitarsD) 32 guitars

Q: Table 2-11One MotorcycleOne GuitarIreland20 hours4 hoursScotland8 hours2 hoursTable 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.Refer to Table 2-11. Does either Ireland or Scotland have an absolute advantage and if so, in what product?A) Scotland only has an absolute advantage in guitars.B) Ireland only has an absolute advantage in guitars.C) Scotland has an absolute advantage in both products.D) Ireland only has an absolute advantage in motorcycles.

Q: For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces. Which of the following is true about the comparative advantage between the two countries? A) Australia has the comparative advantage in surfboards. B) Australia has the comparative advantage in boomerangs. C) New Zealand has the comparative advantage in surfboards and boomerangs. D) New Zealand has the comparative advantage in boomerangs.

Q: Table 2-10TammiHoraceDogs Groomed2012Cats Bathed108Table 2-10 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.Refer to Table 2-10. Which of the following statements istrue?A) Horace has a comparative advantage in both tasks.B) Tammi has a comparative advantage in both tasks.C) Horace has a comparative advantage in grooming dogs and Tammi in bathing cats.D) Horace has a comparative advantage in bathing cats and Tammi in grooming dogs.

Q: Table 2-10TammiHoraceDogs Groomed2012Cats Bathed108Table 2-10 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.Refer to Table 2-10. What is tammi's opportunity cost of bathing a cat?A) half a groomed dogB) two groomed dogsC) two-thirds of a groomed dogD) one and a half groomed dogs

Q: Table 2-10TammiHoraceDogs Groomed2012Cats Bathed108Table 2-10 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.Refer to Table 2-10. What is Tammi's opportunity cost of grooming a dog?A) half a bathed catB) two bathed catsC) two-thirds of a bathed catD) one and a half bathed cats

Q: Table 2-10TammiHoraceDogs Groomed2012Cats Bathed108Table 2-10 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.Refer to Table 2-10. What is Horace's opportunity cost of bathing a cat?A) half a groomed dogB) two groomed dogsC) two-thirds of a groomed dogD) one and a half groomed dogs

Q: Table 2-10TammiHoraceDogs Groomed2012Cats Bathed108Table 2-10 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.Refer to Table 2-10. What is Horace's opportunity cost of grooming a dog?A) half a bathed catB) two bathed catsC) two-thirds of a bathed catD) one and a half bathed cats

Q: Table 2-10TammiHoraceDogs Groomed2012Cats Bathed108Table 2-10 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.Refer to Table 2-10. Which of the following statements istrue?A) Horace has an absolute advantage in both tasks.B) Tammi has an absolute advantage in both tasks.C) Horace has an absolute advantage in dog grooming and Tammi in cat bathing.D) Horace has an absolute advantage in cat bathing and Tammi in dog grooming.

Q: Rayburn Reed is a highly talented photographer. He has chosen to specialize in photography because of all of the following except A) he obviously has a comparative advantage in photography. B) his opportunity cost of pursuing another career is very low. C) for him, this is the most lucrative way to purchase the products that he wants to consume. D) his photographs are highly esteemed by art lovers who are willing to pay very high prices.

Q: If the best surgeon in town is also the best at cleaning swimming pools, then according to economic reasoning, this person should A) pursue the activity he enjoys more. B) specialize in cleaning swimming pools because it is more labor-intensive. C) split his time evenly between being a surgeon and cleaning swimming pools. D) specialize in being a surgeon because its opportunity cost is lower.

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. If the two countries specialize and trade, who should export canoes?A) There is no basis for trade between the two countries.B) GuatemalaC) HondurasD) They should both be exporting canoes.

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. If the two countries specialize and trade, who should export sailboats?A) There is no basis for trade between the two countries.B) GuatemalaC) HondurasD) They should both be importing sailboats.

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. Guatemala has a comparative advantage in the production ofA) canoes.B) sailboats.C) both products.D) neither product.

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. Honduras has a comparative advantage in the production ofA) canoes.B) sailboats.C) both products.D) neither product.

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. What is Guatemala's opportunity cost of producing one canoe?A) 1/6 of a sailboatB) 2/3 of a sailboatC) 6 sailboatsD) 7.5 sailboats

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. What is Honduras's opportunity cost of producing one canoe?A) 1/5 of a sailboatB) 1.5 sailboatsC) 5 sailboatsD) 6 sailboats

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. What is Guatemala's opportunity cost of producing one sailboat?A) 1/6 of a canoeB) 2/3 of a canoeC) 3 canoesD) 6 canoes

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. What is Honduras's opportunity cost of producing one sailboat?A) 1/5 of a canoeB) 1.5 canoesC) 4 canoesD) 5 canoes

Q: Table 2-9One CanoeOne SailboatGuatemala10 hours60 hoursHonduras15 hours75 hoursTable 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.Refer to Table 2-9. Does either Guatemala or Honduras have an absolute advantage and if so, in what product?A) Guatemala only has an absolute advantage in producing canoes.B) Honduras only has an absolute advantage in producing canoes.C) Guatemala has an absolute advantage in producing both products.D) Honduras only has an absolute advantage in producing sailboats.

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. If the two countries specialize and trade, who should export digital cameras?A) There is no basis for trade between the two countries.B) ChinaC) South KoreaD) They should both be importing digital cameras.

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. If the two countries specialize and trade, who should export wheat?A) There is no basis for trade between the two countries.B) ChinaC) South KoreaD) They should both be exporting wheat.

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. South Korea has a comparative advantage in the production ofA) wheat.B) digital cameras.C) both products.D) neither product.

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. China has a comparative advantage in the production ofA) wheat.B) digital cameras.C) both products.D) neither product.

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. What is South Korea's opportunity cost of producing one pound of wheat?A) 60 digital camerasB) 20 digital camerasC) 5 digital camerasD) 0.05 units of a digital camera

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. What is China's opportunity cost of producing one pound of wheat?A) 0.04 units of a digital cameraB) 4 digital camerasC) 25 digital camerasD) 40 digital cameras

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. What is South Korea's opportunity cost of producing one digital camera?A) 0.05 pounds of wheatB) 20 pounds of wheatC) 25 pounds of wheatD) 60 pounds of wheat

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. What is China's opportunity cost of producing one digital camera?A) 0.04 pounds of wheatB) 4 pounds of wheatC) 25 pounds of wheatD) 40 pounds of wheat

Q: Table 2-8One Digital CameraWheat (per pound)China100 hours4 hoursSouth Korea60 hours3 hoursTable 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-8. Does either China or South Korea have an absolute advantage and if so, in what product?A) South Korea has an absolute advantage in wheat.B) China has an absolute advantage in wheat.C) South Korea has an absolute advantage in both products.D) China has an absolute advantage in digital cameras.

Q: Which of the following statements is true? A) Individuals who have never been the best at doing anything cannot have a comparative advantage in producing any product. B) Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product. C) Individuals who have never been the best at doing anything perform all tasks at a higher opportunity cost than others. D) Individuals who have never been the best at doing anything must have an absolute advantage in at least ones task.

Q: Figure 2-10 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. Refer to Figure 2-10. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of milk? A) Bora Bora B) They have the same advantage. C) Tahiti D) cannot be determined

Q: Figure 2-10 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. Refer to Figure 2-10. Which country has a comparative advantage in the production of honey? A) Bora Bora B) They have equal productive abilities. C) Tahiti D) neither country

Q: Figure 2-10 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. Refer to Figure 2-10. Which country has a comparative advantage in the production of milk? A) Bora Bora B) They have equal productive abilities. C) Tahiti D) neither country

Q: Figure 2-10 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. Refer to Figure 2-10. What is the opportunity cost of producing one gallon of honey in Bora Bora? A) 2/3 gallon of milk B) 0.9 gallon of milk C) 1 1/3 gallons of milk D) 1.5 gallons of milk

Q: Figure 2-10 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. Refer to Figure 2-10. What is the opportunity cost of producing one gallon of honey in Tahiti? A) 5/6 gallon of milk B) 0.9 gallon of milk C) 1.2 gallons of milk D) 1 1/3 gallons of milk

Q: Figure 2-10 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. Refer to Figure 2-10. What is the opportunity cost of producing one gallon of milk in Bora Bora? A) 2/3 gallon of honey B) 0.8 gallon of honey C) 1.125 gallons of honey D) 1.5 gallons of honey

Q: Figure 2-10 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. Refer to Figure 2-10. What is the opportunity cost of producing one gallon of milk in Tahiti? A) 1/2 gallon of honey B) 5/6 gallon of honey C) 1.2 gallons of honey D) 1.5 gallons of honey

Q: Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. Refer to Figure 2-9. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton? A) Indonesia B) They have the same advantage. C) Pakistan D) cannot be determined

Q: Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. Refer to Figure 2-9. Which country has a comparative advantage in the production of cashews? A) Indonesia B) They have equal productive abilities. C) Pakistan D) neither country

Q: Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. Refer to Figure 2-9. Which country has a comparative advantage in the production of cotton? A) Indonesia B) They have equal productive abilities. C) Pakistan D) neither country

Q: Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. Refer to Figure 2-9. What is the opportunity cost of producing 1 pound of cashews in Indonesia? A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 2 2/3 bolts of cotton D) 320 bolts of cotton

Q: Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. Refer to Figure 2-9. What is the opportunity cost of producing 1 pound of cashews in Pakistan? A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 1 3/5 bolts of cotton D) 240 bolts of cotton

Q: Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. Refer to Figure 2-9. What is the opportunity cost of producing 1 bolt of cotton in Indonesia? A) 3/8 of a pound of cashews B) 5/8 of a pound of cashews C) 2 2/3 pounds of cashews D) 120 pounds of cashews

Q: Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. Refer to Figure 2-9. What is the opportunity cost of producing 1 bolt of cotton in Pakistan? A) 3/8 of a pound of cashews B) 5/8 of a pound of cashews C) 1 3/5 pounds of cashews D) 150 pounds of cashews

Q: For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese. France can produce 1 bottle of wine for every 25 pounds of cheese it produces. Which of the following is true about the comparative advantage between the two countries? A) Italy has the comparative advantage in cheese. B) Italy has the comparative advantage in wine. C) France has the comparative advantage in wine and cheese. D) France has the comparative advantage in wine.

Q: Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except A) engage in mutually beneficial trade with other nations. B) increase the variety of products that it can consume with no increase in resources. C) consume a combination of goods that lies outside its own production possibilities frontier. D) produce a combination of goods that lies outside its own production possibilities frontier.

Q: Comparative advantage means the ability to produce a good or service A) at a lower selling price than any other producer. B) at a lower opportunity cost than any other producer. C) of a higher quality than any other producer. D) at a higher profit level than any other producer.

Q: Table 2-7FredBarneyPogo Sticks2428Unicycles814Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.Refer to Table 2-7. Which of the following statements istrue?A) Fred has a comparative advantage in making both products.B) Barney has a comparative advantage in making both products.C) Barney has a comparative advantage in making pogo sticks and Fred in making unicycles.D) Barney has a comparative advantage in making unicycles and Fred in making pogo sticks.

Q: Table 2-7FredBarneyPogo Sticks2428Unicycles814Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.Refer to Table 2-7. What is Barney's opportunity cost of making a unicycle?A) 1/2 pogo stickB) 2 pogo sticksC) 1.75 unicyclesD) 2.8 pogo sticks

Q: Table 2-7FredBarneyPogo Sticks2428Unicycles814Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.Refer to Table 2-7. What is Barney's opportunity cost of making a pogo stick?A) 1/2 unicycleB) 2 unicyclesC) 1/3 unicycleD) 1.4 pogo sticks

Q: Table 2-7FredBarneyPogo Sticks2428Unicycles814Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.Refer to Table 2-7. What is Fred's opportunity cost of making a unicycle?A) 1/3 pogo stickB) 3 pogo sticksC) 1/2 unicycleD) 1.3 pogo sticks

Q: Table 2-7FredBarneyPogo Sticks2428Unicycles814Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.Refer to Table 2-7. What is Fred's opportunity cost of making a pogo stick?A) 1/3 unicycleB) 3 unicyclesC) 6/7 pogo stickD) 1/2 unicycle

Q: Table 2-7FredBarneyPogo Sticks2428Unicycles814Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.Refer to Table 2-7. Which of the following statements istrue?A) Fred has an absolute advantage in making both products.B) Barney has an absolute advantage in making both products.C) Barney has an absolute advantage in making pogo sticks and Fred in making unicycles.D) Barney has an absolute advantage in making unicycles and Fred in making pogo sticks.

Q: Table 2-6 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. Which of the following statements istrue? A) Haley has a comparative advantage in making both products. B) Serena has a comparative advantage in making both products. C) Haley has a comparative advantage in making bracelets and Serena in making necklaces. D) Haley has a comparative advantage in making necklaces and Serena in making bracelets.

Q: Table 2-6 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. What is Serena's opportunity cost of making a necklace? A) 2 necklaces B) 1/2 of a bracelet C) 1/2 of a necklace D) 3/4 of a bracelet

Q: Table 2-6 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. What is Serena's opportunity cost of making a bracelet? A) 2 necklaces B) 1/2 of a bracelet C) 1/2 of a necklace D) 3/4 of a bracelet

Q: Table 2-6 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. What is Haley's opportunity cost of making a necklace? A) 3/4 of a bracelet B) 3 bracelets C) 1 1/3 necklaces D) 2 necklaces

Q: Table 2-6 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. What is Haley's opportunity cost of making a bracelet? A) 3/4 of a bracelet B) 3 bracelets C) 1 1/3 necklaces D) 2 necklaces

Q: Table 2-6 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. Refer to Table 2-6. Which of the following statements istrue? A) Haley has an absolute advantage in making both products. B) Serena has an absolute advantage in making both products. C) Haley has an absolute advantage in making bracelets and Serena in making necklaces. D) Haley has an absolute advantage in making necklaces and Serena in making bracelets.

Q: You have an absolute advantage whenever you A) are better educated than someone else. B) can produce more of something than others with the same resources. C) prefer to do one particular activity. D) can produce something at a lower opportunity cost than others.

Q: Table 2-5Possible Output CombinationsShrimp (thousands of pounds)Oysters (thousands of pounds)A350B3020C2535D2047E1557F1064G568H070Refer to Table 2-5. The Shellfish Shack produces only shrimp and oysters. The table aboveshows the maximum possible output combinations of the two types of shellfish using all resources and currently available technology.a. Suppose The Shellfish Shack is currently producing at point E. What is the opportunity cost of producing an additional 11,000 pounds of oysters?b. Suppose The Shellfish Shack is currently producing at point E. What happens to the opportunity cost of producing more and more shrimp? Does it increase, decrease or remain constant? Explain your answer.c. Suppose The Shellfish Shack is currently producing at point B. What happens to the opportunity cost of producing more and more oysters? Does it increase, decrease or remain constant? Explain your answer.d. Suppose The Shellfish Shack is plagued by a disease which destroys oyster beds but not shrimp habitats. What would happen to its PPF?

Q: Table 2-4Possible Output CombinationsApples (thousands of pounds)Pears (thousands of pounds)A700B6020C5036D4048E3056F2060G1063H065Refer to Table 2-4. The Fruit Farm produces only apples and pears. The table aboveshows the maximum possible output combinations of the two fruits using all resources and currently available technology.a. Graph The Fruit Farm's production possibilities frontier. Put apples on the horizontal axis and pears on the vertical axis. Be sure to identify the output combination points on your diagram.b. Suppose The Fruit Farm is currently producing at point D. What is the opportunity cost of producing an additional 8,000 pounds of pears?c. Suppose The Fruit Farm is currently producing at point D. What happens to the opportunity cost of producing more and more pears? Does it increase, decrease or remain constant? Explain your answer.d. Suppose The Fruit Farm is currently producing at point G. What happens to the opportunity cost of producing more and more apples? Does it increase, decrease or remain constant? Explain your answer.e. Suppose The Fruit Farm is plagued by the apple maggot infestation which destroys apple trees but not pears. Show in a graph what happens to its PPF.

Q: a. Draw a production possibilities frontier for a country that produces two goods, beer and pretzels. Assume that resources are equally suited to both tasks. b. Define opportunity costs. c. Use your production possibilities frontier graph to demonstrate the principle of opportunity costs.

Q: What shape does a production possibilities frontier take if it displays increasing opportunity costs? What shape does a production possibilities frontier take if it displays constant opportunity costs? Which shape is most common in production situations?

Q: What is a production possibilities frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?

Q: What is economic growth?

Q: What is meant by the term opportunity cost?

Q: On a diagram of a production possibility frontier, economic growth is represented by the slope of the production possibility frontier.

Q: If additional units of a good could be produced at an increasing opportunity cost, the production possibility frontier would be linear.

Q: A decrease in population shifts the production possibility frontier outwards over time.

Q: Any output combination along a production possibility frontier is associated with fully utilized resources.

Q: Consider a country that produces only two goods: parrots and iguanas. Suppose it is impossible for this country to increase its production of parrots without producing fewer iguanas. In this case, its current output combination is efficient.

Q: If a country is producing efficiently and is on the production possibilities frontier, the country can produce more of one good without producing less of the other good.

Q: An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a different point on the frontier.

Q: To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage. These facts suggest that a negative relationship exists between safety and gas mileage.

Q: On a diagram of a production possibility frontier, opportunity cost is represented by the production possibility frontier shifting outward.