Economics CC 2 Sec ON 1 Week 3 Homework 3

Economics CC 2 Sec ON 1 Week 3 Homework 3 | chatbot las positas  community college

Question 1

Michael can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. Vernon can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. It follows that

  

·         Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y. 

·         Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X.  

·         Neither Michael nor Vernon has a comparative advantage in producing X.  

·         Neither Michael nor Vernon has a comparative advantage in producing Y.  

·         There is not enough information to answer the question.

 

Question 2

Which of the following statements is false?  

·         If there are only two goods, guns and butter, it is possible to produce more of both goods through economic growth.  

·         If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at a productive inefficient point.  

·         Assume that there are only two goods, guns and butter. Other things being equal, it is possible to produce more of both goods if the economy is currently operating at a productive efficient point.  

·         Assume that there are only two goods, guns and butter. Other things being equal, producing more of one means producing less of the other if the economy is currently operating at a productive efficient point.

 

Question 3

The point where the production possibilities frontier (PPF) intersects the horizontal axis is  

·         unattainable.  

·         attainable and productive efficient.  

·         attainable but productive inefficient.

 

Question 4

 

Exhibit 6

Maria    Maya

Good X Good Y Good X Good Y

90           0              60           0

60           30           40           10

30           60           20           20

0              90           0              30

 

 

Refer to Exhibit 6. Who has the comparative advantage in the production of good Y?

  

·         Maria  

·         Maya  

·         Both Maria and Maya  

·         Neither Maria nor Maya

 

Question 5

Exhibit 2

Maria    Maya

Good X Good Y Good X Good Y

90           0              60           0

60           30           40           10

30           60           20           20

0              90           0              30

 

 

Refer to Exhibit 2. For Maria, the opportunity cost of producing one unit of good X is ___________ unit(s) of good Y.

  

·         2.00  

·         1.00  

·         10.00  

·         0.50

 

Question 6

Currently an economy is producing (at a point on its production possibilities frontier) 100 units of good X and the opportunity cost of producing 1X is 3Y. If good X is produced at increasing opportunity costs, then when the economy produces 120 units of good X (on the same PPF) the opportunity cost of producing 1Y (not 1X) could be  

·         1/4X.  

·         1/3X.  

·         1/2X.  

·         1X.

  

 

Question 7

Through war, many of the factories in country 1 are destroyed and many of its people are killed. As a result, the country's  

·         production possibilities frontier (PPF) after the war has probably shifted to the right compared to its PPF prior to the war.  

·         PPF after the war has probably shifted to the left compared to its PPF prior to the war.  

·         PPF after the war is probably the same PPF as before the war.  

·         ability to produce goods and services has increased.

 

Question 8

Points inside (below) the production possibilities frontier (PPF) are  

·         unattainable.  

·         attainable, but productive inefficient.  

·         preferable to points that lie on the PPF.  

·         attainable and productive efficient.

 

Question 9

The economy was at point A producing 100X and 200Y. It moved to point B where it produces 200X and 300Y. It follows that  

·         point A may have been a point below the economy's production possibilities frontier (PPF), while point B may lie on the PPF.  

·         the economy's PPF could have shifted outward and point B was a point on the economy's old PPF.  

·         the economy has moved from one point on its PPF to another point on the same PPF.

 

Question 10

 

Exhibit 1

Person A

 Good X                Good Y

 200        0

 150        50

 100        100

 50          150

 0             200

 

 

Person B

 Good X                Good Y

 0             160

  40          120

  80         80

120         40

160         0

 

 

Refer Exhibit 1. Person A has the comparative advantage in the production of _____________ and person B has the comparative advantage in the production of __________________.

·          

·         X; Y  

·         Y; X  

·         neither good X nor good Y; neither good X nor good Y  

·         both good X and good Y; neither good X nor good Y  

·         neither good X nor good Y; both good X and good Y