1. Assurne that we have a PPF. Point A lies inside (to the left) of the frontier, Point B and C are located along the frontier and Point D is located outside (to the right) the frontier. Which of the following points represent feasible (attainable) production points?
a. All points (A, B, C and D) are feasible,
b. Points A, B and C are feasible.
C. Points B and C are feasible.
d. None of the points are feasible.
2. Assume that we have a PPF. Point A lies inside (to the left) of the frontier. Point B and C are located along the frontier and Point D is located outside (to the right) the frontier. Which points represent efficient production points?
a. All points (A, B, C and D) are efficient.
b. Points A, B and C are efficient.
c. Points B and C are efficient.
d. Points B, C and D are efficient.
3. What is traded in factor markets?
a. agricultural products
b. mineral products
C. exports and imports
d. land, labor, capital, and human capital
4. Roommates Sarah and Zoe are hosting a Halloween Party and have to make food for their guests and costumes for themselves. To finish both tasks as quickly as possible, Sarah and Zoe know that each of then should focus on just one task, but they don't know who should do what. To decide which roommate should do the cooking, Sarah and Zoe should determine which roommate:
a. has the absolute advantage in cooking.
b. has the comparative advantage in cooking.
c. has the largest production possibility frontier in cooking.
d. can complete the cooking in the least amount of time.
5. Economists generally believe that a country should specialize in the production of a good or service if:
a. the production possibility frontier is larger than that of any other country,
b. the production possibility frontier is smaller than that of any other country
C. the country can produce the product using fewer resources than any other country
d. the country can produce the product while forgoing fewer alternative products than any other country.