Le consumption possibilities frontier shows a. a nation's opportunity cost of producing different goods for consumption. b. possible combinations of goods that residents of a nation consume at different income levels. Oc. a nation's possible combinations of how much of one good exchanges for another. d. the difference between the most that consumers would pay for a good and the actual amount they pay. e. a nation's possible combinations of goods available as a result of specialization and exchange. bike 2 bike jpg.jpg bike 2.jpg A CL OL Savi ^

Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier ↑m 20- INOW 20- 10- 18. 16 16- 34 14- 12 124 T 1 Figure 3-15 Refer to Figure 3-15. If Perry and Jordan each spends all of his/her time producing the good in which she has a comparative advantage and trade takes place at a price of 1 movel for 7 poems, then Ⓒa. Perry and Jordan will both gain from this trade. O b. Perry will gain from this trade, but Jordan will not. Oc Jordan will gain from this trade, but Perry will not. Od neither Perry nor Jordan will gain from this trade.

Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, A. Mary produces only cakes while Tim produces only pies B. Mary produces only pies C. Tim produces both pies and cakes D. Tim produces only cakes while Mary produces only pies

The figure to the right shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids. What is the opportunity cost of one dozen orchids? OA. 0.4 dozen roses B. 2.5 dozen roses O C. 7.25 dozen roses OD. 16 dozen roses Roses (dozens) 200 160 120 80 40 20 40 60 80 Orchids (dozens)

Ice cream (millions of gallons per year) 5 A 4 В 3 2 3 4 Milk (millions of gallons per year) The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and Bis A) 4 gallons of ice cream for a gallon of milk. B) 3 gallons of ice cream for a gallon of milk. C) 1 gallon of ice cream for a gallon of milk. D) 1/3 of a gallon of ice cream for a gallon of milk. E) zero because at point A, zero milk is being produced.

ed 13 out of an In one hour, Sue can produce 50 caps or 10 jackets and Tessa can produce 70 caps or 7 jackets. Sue's opportunity cost of producing a cap is, cost of producing a cap is. jackets. has a comparative advantage in producing caps. If Sue and Tessa each specialize in producing the good in which they have a comparative advantage and trade 1 jacket for 7 caps, then Select one: O a. 5.0/10.0/Tessa/Sue loses but Tessa gains O b. 0.2/0.10/Sue/both Sue and Tessa gain 0 c.0.2/0.10/Tessa / both Sue and Tessa gain 0 d. 0.2/0.10/Sue / Tessa gains but Sueloses e. 5.0/10.0/Sue/both Sue and Tessa gain jackets and Tessa's opportunity 47

It takes Andy 45 minutes to complete a load of laundry and 15 minutes to wrap a present. It takes Bob 60 minutes to complete a load of laundry and 30 minutes to wrap a present. Which of the following statements is true? Select one : O A. Bob's opportunity cost of doing a load of laundry is wrapping 3 presents. O B. Bob has a comparative advantage in doing laundry. O C. Bob has a comparative advantage in wrapping a present. O D. Andy's opportunity cost of wrapping a present is doing 3 loads of laundry. O E. Bob has an absolute advantage in doing laundry.

Person 1 can allocate her 8-hour day between the production of two goods. A and B. Each hour devoted to Good B yields  2 units whereas each hour devoted to Good A produces 4 unit. Person 2, can produce 3 units of Good B or 4 units of Good A per hour. 1. Who has the comparative advantage in the production of Good B? a. Person 2 produces more than Person 1 using more resources b. Person 1 produces more than Person 2 using same resources c. Person 2 produce more than Person 1 using less resources d. Person 1 produce with lower opportunity cost e. Neither they both produce same quantity f. Person 1 produce more than Person 2 using more resources g. Person 2 produce more than Person 1 using less resources h. Person 2 produce with lower opportunity cost   2. Who has the comparative advantage in the production of Good A?  a. Person 2 produces more than Person 1 using more resources b. Person 1 produces more than Person 2 using same resources c. Person 2 produce more than Person 1 using less…

wine 90 80 70 60 50. D012 mani 40 30 20 10 PPF Portugal (c) 1 bome of (0)2 bottles of sine (0)3 bottles of wine CPF of t 0 10 20 30 40 50 60 cloth 11. What is the elave price opportunity cost of col in England, betere trade beges? A) 1/2 yard of cloth wine 90 80 70 60 50 40 30 20 10 England PPF CPF 0 10 20 30 40 50 60 cloth

7. Two people make up a small economy producing oats and/or shirts. The table below shows the maximum each individual can produce in one day for each good (and any linear combination). Sam Lindsay Oats 300 150 Shirts 100 75 a) Who has the comparative advantage in producing Oats? In producing shirts? b) In terms of shirts, what is the cost of producing one unit of oats for Sam? For Lindsay? c) If the total number of shirts produced is 100, then how many units of oats will be produced if production takes place according to comparative advantage?