02. Which of the following statements about point C is FALSE? production of both X and Y can increase, without more resources or improvement in technology. 12 units of product Y and 16 units of product X is being produced to produce more of product Y, some of product X has to be sacrificed. the economy is not producing efficiently. both (a) and (d). 8 O O

Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, attainable, or not attainable. Check all that apply. Inefficient Efficient Attainable Not attainable Point A B E F O O (O

:- Analysis: Points A, B, and C signify efficient use of resources and attainable production O A. True O B. False

6. Which statement is true? I. A negative productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. II. A positive productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. III. The slope of the production possibilities frontier is the opportunity cost of producing an additional unit of a good in terms of the other good. a. only I and III are true b. only I is true c. only II and III are true d. only III is true e. only II is true

Under the efficient level of production, the economy is getting all it can from the commonly resources available Select one: O True False

QUESTION 19 Exhibit: Production Possibilities in Alphaland and Omegaland Computers (thousands per year) 2947654321 10 (Exhibit: for O a. 1; 2 Ob. 2; 1 O c. 1; 1/5 O d. 1/5; 1 Panel (A) Alphaland (Slope of PPC at A = -2) Cars (thousands per year) Computers (thousands per year) 10 9 8 Panel (B) Omegaland (Slope of PPC at A' = -0.2) A' Cars (thousands per year) 11 Production Possibilities in Alphaland and Omegaland) Before trade in Omegaland, computer. car could exchange

Country X is faced with the following output combinations for capital goods and consumer goods. Option A B CDE Consumer goods (in 10000) == E Complete parts a, b, c, and d. a. Graph the production possibilities curve for Country X with capital goods on the x-axis and consumer goods on the y-axis. ܡܐܐ J 2 o O Capital Goods 0 8000 16000 24000 32000 (0,22) (8,20) JA 4 B с Consumer Goods 220000 200000 160000 100000 0 (16,16) 16 P.O. Box 56480 Portland, OR 97238 (24, 10) D E (32,0) + 20 24 28 32 8 12 Capital goods (in 1000) b. Does the Law of Increasing Opportunity Costs hold for this example? Explain why or why not. c. As you move from point B to point C, what is the cost of one more consumer good?

2. You are preparing to market this year's calf crop and want to decide if you would like to precondition your calves this year. If you decided to sell your calves at weaning, you would expect to market them at approximately 425 at price of $1.80 per pound. Alternatively, you have the option to precondition your calves for 45 days in a dry lot, castrate your bulls, and provide a round of vaccinations. You expect that the additional 45 days of feeding will get your calves up to a market weight of 550 pounds. Under normal circumstances, these calves would bring $1.65 per pound at the sale barn, but you also expect that you can charge a 6% preconditioning premium at the time of sale because you are marketing them directly. a. What is the final sale price for the 550 pound preconditioned calves? b. What is the value of gain for the preconditioned calves? c. If your cost of gain over the 45-day preconditioning period is $1.45 what would be your net profit on these calves?

QUESTION 8 product Y 28 24 20 16 12 8 4 0 0 Production Possibilities Frontier point A -point F 4 8 12 product X point B -point C 16 20 -point E -point D 24 08. Which of the following statements about point C is TRUE? O a) to produce more of product Y, some of product X has to be sacrificed. b) the economy cannot reach this point without an increase in resources or improvement in technology. c) the economy is producing efficiently. d) both (a) and (c). e) none of the above.

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