A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule. Product Steel Wheat A 0 100 Production Possibilities B 1 90 Multiple Choice 1 steel and 80 wheat 4 steel and 55 wheat Which of the following output-combinations is unattainable? 30 wheat and 3 steel C 2 75 95 wheat and 0 steel D 3 55 E 4 30 F 5 0

42000 25 10 Max's PPF Good x EVERERA NO 30 21 Milly's PPF 1. What is the opportunity cost of producing one unit of Good Y for Max in terms of Good X? You must enter a number. Fractions will not be accepted. Enter a decimal if necessary. 2 x 4 2. What is the opportunity cost of producing one unit of Good X for Max in terms of Good Y? You must enter a number. Fractions will not be accepted. Enter a decimal if necessary. 5 x

Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?

Figure 2.2. Canadian Trade Possibilities Televisions 16 12 8 4 0 Canada's Transformation Schedule Televisions 8 12 International Terms of Trade Refrigerators Televisions and refrigerators Neither televisions nor refrigerators с 16 20 B 24 Figure 2.2 shows a straight-line production possibilities curve with televisions on the vertical axis and refrigerators on the horizontal axis for Canada. The intercept on the vertical axis equals 16 and on the horizontal axis equals 24. Point A shows a point where an indifference curve is tangent to the production possibilities curve where televisions on the vertical axis equal 8 and refrigerators on the horizontal axis equal 12. A downward sloping straight line representing the international terms of trade starts at a point where refrigerators equal 24; an indifference curve is tangent to this line at a point where televisions equal 12 and refrigerators equal 16. Referring to Figure 2.2, Canada has a comparative advantage in: Refrigerators

Answer the questions based on the figure below, which is for the country of Quantz.. Quantity of Coffee 280 240 200 160 120 80 40 0 Production Possibilities for Coffee and Tea 80 W 160 b. In moving from W to X 240 320 How much tea is gained and what is the cost in coffee? a. In moving from U to v tea is gained at the cost of tea is gained at the cost of c. In moving from Y to Z tea is gained at the cost of coffee. coffee. coffee.

Table 2-1 Production Possibilities. Couches 150 300 450 Refer to Table 2-1. If the production possibilities frontier is bowed outward, then which of the following could be the maximum number of chairs produced when 300 couches are produced? 8,100. Chairs 10,000 9,000 2 8,400. 8,000. 6,800.

Germany 300 900 T-shirts per year Turkey 500 250 T-shirts per year The opportunity cost of producing an optical instrument in Germany is| t-shirts per year. Optical instruments per year Optical instruments per year