Microeconomics Exam 1 Review 2

Points on a PPF that are attainable are ___ and PPF and __ the PPF.

A country produces only apples and bananas. Moving from point A to point B along its production possibilities frontier, 5 apples are forgone and 4 bananas are gained. What is the opportunity cost of a banana?

In one hour, John can produce 20 loaves of bread or 16 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. What is true?
John/Phyllis has a comparative advantage in producing cakes.

A point in the PPF means that the production is _______, but it is _________.

A bowed out PPF reflects an _______ opportunity cost and that resources are not ______ productive in all activities.

What is gained when people engage in specialization and trade? Specialization and trade allow people to ______ outside their individual PPF.

The production possibilities frontier is the boundary between the combinations of goods and services that ___ be produced and the combinations that ______ be produced, given the available factors of ________ and the state of ________.

A country has the comparative advantage in a good if it can produce the good at the lowest __________ ____.