Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 3, Problem 3MCQ
To determine
(a)
Best alternative
To determine
(b)
Best Alternative
To determine
(c)
Best Alternative.
To determine
(d)
Best Alternative
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5.
China is able to produce turnips and potatoes in combinations represented by the following table.
(Each number represents 1,000s of bushes.)
Potatoes
Production Turnips
point
a.
B
C
D
E
b.
C.
points.
100 and 0
90
and 10
and 20
and 30
and 40
70
40
0
Plot the data on a production possibilities graph, labeling
Can China produce a combination of 30 turnips and 24 potatoes? Draw this production point on the
graph (label it F) and verbally explain.
Demonstrate that China experiences increasing opportunity costs by calculating the opportunity cost of
producing another potato at each production point. Explain.
8. A small bakery makes baguettes and muffins. With the resources available (workers, flour, machines) this bakery can
produce either 1500 baguettes or 2000 muffins per day.
a. What is the opportunity cost of an extra muffin in terms of baguettes?
b. Assume that production is currently 1200 muffins and 600 baguettes. If the bakery wanted
to expand its muffin production to 1300 muffins per day, how many baguettes would be baked?
4. Steve can bake either 4 loaves of bread or 12 dozen cookies a day. Sarah can bake either
4 loaves of bread or 8 dozen cookies a day.
a. Show the production possibilities frontiers for Steve and Sarah
b. Suppose trade is not allowed between Steve and Sarah and as a result, both Steve and
Sarah spent half a day (12 hours) baking bread and the other half a day baking cookie.
Show both the production and consumption bundles for Steve and Sarah on their
respective PPFs, when trade is not allowed between Steve and Sarah.
c. Show, using production possibility frontiers in (a), that Steve and Sarah would be
better off specializing in their baking activities and then trading, rather than baking
only for themselves. Be specific and state the production and consumption bundles
with trade.
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- A production possibilities table for DVDs and computers is shown below. Type of Production Computers DVDS A 0 80 Production Alternatives B 20 65 C 40 47 D 60 27 E 80 0 Instructions: Enter your answers as a whole number. a. What is the opportunity cost of computers when moving from point A to point B? DVDs b. What is the opportunity cost of computers when moving from point B to point C? DVDs c. What is the opportunity cost of computers when moving from point C to point D? DVDs d. What is the opportunity cost of computers when moving from point D to point E? DVDs e. As we produce more computers, opportunity costs are [(Click to select):arrow_forwardPossibility Wheat (Million Ton) Milk (Million Ton) Opportunity Cost A 16 1 15 C 13 3 10 E 4 6. F * The table Lists Production Possibilities for wheat and milk in an Economic Society Required: 1- Calculate the Opportunity Cost for that Society 2- If the society produce at point (2 Million ton of wheat and 15 Million ton of milk) what Does it mean? 3- If the society produce at point (3 Million ton of wheat and 6 Million ton of milk) what Does it mean? 4- What does production mean at the numbers mentioned in the table?arrow_forward2. Here is the production possibilities table for robots and wheat: Production Alternative Types of Production A B C D E Robots 250 450 650 850 Wheat 130 117 109 89 What is the opportunity cost of moving from point A to point B?arrow_forward
- Table 1 Production Possibilities Corn Rye (Bushels) (Bushels) 2,500 2,000 700 1,500 1,200 1,000 1,600 500 1,900 2,100 3. Refer to Table 1. What is the opportunity cost of increasing the production of rye from 700 bushels to 1200 bushe a. 250 bushels of corn b. 500 bushels of corn c. 750 bushels of corn d. 1000 bushels of cornarrow_forwardComplete 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 (Oarrow_forwardQUESTION 14 Assume the economy of Scoob can produce 5 tons of rice and 15 tons of wheat while the economy of Widgland can produce 10 tons of rice and 20 tons of wheat. Which of the following is FALSE? A. Opportunity cost of 1 ton of wheat in Widgland is 0.5 B. Opportunity cost of 1 ton of rice in Widgland is 0.5 C. Opportunity cost of 1 ton of wheat in Scoob is 0.33 D. Opportunity cost of 1 ton of rice is Scoob is 3arrow_forward
- The following table shows the production possibilities data. Farmer Rancher Table 2-3 Labor Hours Needed to Make 1 Pound of: Meat 8 4 Potatoes 2 5 Pounds produced in 40 hours: Meat 5 10 Potatoes 20 8 Refer to Table 2-3. The farmer and the rancher both could benefit if the farmer were to specialize in a. meat and the rancher were to specialize in potatoes. O b. potatoes and the rancher were to specialize in meat. c. neither good and the rancher were to specialize in both goods. O d. neither good; they cannot both benefit by specialization and trade.arrow_forwardSuppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________. Question content area bottom Part 1 A. 1000 books and 1500 tables; a free lunch B. 1000 books and 500 tables; an efficient point C. 1000 books and 1000 tables; a free lunch D. 500 books and 1000 tables; an inefficient but attainable pointarrow_forwardB. Use the data in the table below to calculate the opportunity cost of moving from one production point to another. ( - Calculate the Movement from A to B - Calculate the Movement from D to C Production of tables (millions) 60 Production point Production of cars (millions) A 4 56 C 8 48 12 36 16 20 E F 20arrow_forward
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