Microeconomics Test 1 (Ch.1-3)

The phenomenon of scarcity stems from the fact that

The adage, "There is no such thing as a free lunch," means

Economists use the word equality to describe a situation in which

Efficiency means that

The opportunity cost of an item is

A rational decisionmaker

A model can be accurately described as a

Which of the following is NOT an assumption of the productions possibilities frontier

Production is efficient if the economy is producing at a point

Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

On a bowed production possibilities frontier, as you move down along the curve

A production possibilities frontier shifts outward when

What is the opportunity cost to Libraryland of increasing the production of books from 200 to 300? (See table 2-3)

At which point is this economy producing its maximum possible quantity of pans? (Figure 2-3)

This economy has the ability to produce at which point(s)?

Economists view positive statements as

Economists view normative statements as

Assume that Andia and Zardia each has 360 minutes available. If each person divides his time equally between the production of wheat and beef, then total production is

Which of the following combinations of wheat and beef could Andia produce in one 8-hour day?

Which of the following combinations of wheat and beef could Zardia not produce in one 10-hour day?

Suppose Jim and Tom can both produce baseball bats. If Jim's opportunity cost of producing baseball bats is lower than Tom's opportunity cost of producing baseball bats, then

What is Andia's opportunity cost of producing one pound of beef?

What is Andia's opportunity cost of producing one bushel of wheat?

What is Zardia's opportunity cost of producing one bushel of wheat?

What is Zardia's opportunity cost of producing one pound of beef?

Andia has an absolute advantage in the production of

Andia has a comparative advantage in the production of

Andia should specialize in the production of

Assume that Andia and Zardia each has 60 minutes available. If each person spends all his time producing the good in which he has a comparative advantage, then total production is

At which of the following prices would both Andia and Zardia gain from trade with each other?

Zimbabwe's opportunity cost of one hairbrush is

Suppose Zimbabwe decides to increase its production of toothbrushes by 10. What is the opportunity cost of this decision?

Zimbabwe has an absolute advantage in the production of

Portugal has an absolute advantage in the production of

Assume that Zimbabwe and Portugal each has 60 machine minutes available. Originally, each country divided its time equally between the production of toothbrushes and hairbrushes. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output increased by

Zimbabwe and Portugal would not be able to gain from trade if Zimbabwe's opportunity cost of one toothbrush changed to