Chapter 2

Question 1

Suppose Pennsylvania produces only steel and barley, with fixed amount of land, labor, and capital resources. Which scenario best sets the stage for economic growth?

Answer 1

The percentage of Pennsylvania residents with a university degree rises from 15% to 23%

Question 2

An economy is said to have a comparative advantage if it:

Answer 2

Has the lowest opportunity cost of producing a particular good compared to other economies

Question 3

An economy that has the——-opportunity cost of producing a particular good is said to have——.

Answer 3

Lowest. A comparative advantage in the production of that good.

Question 4

Abigail starts exercising regularly, and after a few months, she can do twice as much of everything. In a single day, Abigail Kanell, make 10 sandwiches or eight root beer floats better than five sandwiches, and four root beer floats she made in the past we know now that Abigail’s production possibility frontier has———-, but her opportunity cost of making root beer floats has———-.

Answer 4

Shifted outward. Not changed.

Question 5

When choosing among alternative, Models, economists generally prefer models that

Answer 5

Include assumptions that most closely resemble reality

Question 6

If the opportunity cost of manufacturing tractors is higher in the United States than in Germany, and the opportunity cost of manufacturing trains is lower in the United States that attorney, the United States will:

Answer 6

Export trains to Germany, and import tractors from Germany

Question 7

Smallville decides to vote half of its labor time to the production of cowboy hats, and half to the production of pants, it can produce ——pants and ——, cowboy hats.
They have 80 hours of labor and can produce one pair of pants in four hours, and one cowboy hat in two hours

Answer 7

10. 20.

Question 8

Statements that make judgments are:

Answer 8

Normative

Question 9

If the opportunity cost of manufacturing tractors is lower in the United States than in Germany, and the opportunity cost manufacturing trains is higher in the United States than in Germany, then the United States will:

Answer 9

Import trains from Germany and export tractors to Germany 

Question 10

If they spend all night writing poems, Lucia can write 10 poems and Isabella can write five. If they spent all night making necklaces, Lucy can make six and Isabella can make for. We know——-has a comparative advantage in———-.

Answer 10

Lucia, poems

Question 11

The downward slope of the production possibility frontier implies that resources:

Answer 11

Are scarce

Question 12

In the circular flow diagram, a household is a

Answer 12

Individual or group of people who share their income

Question 13

Marcia spent $25 on toys for her cat to play with. That is an example of a:

Answer 13

Household, buying goods and services in the product market

Question 14

Which country has the absolute advantage and barley, and which country has the absolute advantage and aluminum?
If the United States spends all of its available resources to produce barley, it can produce 500 tons. If it uses all of its resources to produce aluminum, it can produce 250 tons. If Germany spent all of its available resources producing barley that can produce 400 tons and if it spends all of its resources producing aluminum, it can produce 400 tons .

Answer 14

The United States. Germany.

Question 15

Firms by and put in the:

Answer 15

Factor market

Question 16

In one day, Keisha can bake 10 muffins or 15 glasses of passion, fruit juice. His friend Alicia can bake 10 muffins or mix 10 glasses of passion, fruit juice. His other friend Evan can bake 10 muffins or mix 20 glasses of passion, fruit juice, who has the lowest opportunity cost in muffinproduction?

Answer 16

Alicia

Question 17

Economic models:

Answer 17

Very greatly in their assumptions and simplifications

Question 18

What is the maximum number of cowboy hat Smallville can produce?
Smallville has 80 hours of labor. They can produce one cowboy hat in two hours and one pair of pants in four hours. 

Answer 18

40

Question 19

In a single day, Josephine can produce 10 hot dogs, and Abigail can produce five hotdogs, therefore,_____ has a_______ advantage in making hotdogs.

Answer 19

Josephine. Absolute.

Question 20

If Germany produces 300 tons of aluminum, how many tons of barley cannot produce?
If the United States spend all of it available resources to produce barley, it can produce 500 tons if it uses all of its resources to produce aluminum, it can produce 250 tons. If Germany spend all of it available resources producing barley, it can produce 400 tons and if it’s spent all of its resources on aluminum, it can produce 400 tons.

Answer 20

100

Question 21

If an economy have to sacrifice only one unit of cheese for each unit of yogurt produced throughout the relevant range, then its production possibility frontier has a:

Answer 21

Constant negative slope