Economics and Production Possibilities Curve - 2007 Words

Principles of Miroeconomics - Final Exam Instructions Please put your name and the course information on the scantron (ECON 2302 Professor J. Bikis) Please put your DBU ID number on the scantron in the area market ID NUMBER Please write your webadvisonr id on the back of the scantron in the area marked WEBADVISOR ID. (This ID is the same ID that you use to get into your DBU email or into BlackBoard) Please select the best answer for each question given and fill in the respective answer option on the scantron for questions 1-40. Good luck! 1. Which of the following is not a positive economics statement? a. Prices of essential goods and services should be set by the government. b. Interest rates†¦show more content†¦What quantity of output will the company produce in order to maximize profit? a. 2 units b. 3 units c. 4 units d. 5 units 11. Take a look at the exhibit above. At what price will firm sell its output to maximize profit? a. $2 b. $4 c. $8 d. Any price 12. Take a look at the exhibit above. If the firm maximizes profit, what will be the firm s total profit? a. $24 b. $12 c. $8 d. $4 13. The process of negotiation between union and management to arrive at a labor contract is called a. arbitration b. mediation c. reconciliation d. collective bargaining e. impasse 14. You are stranded on an island and can either catch four fish in one hour or pick eight bananas in one hour. From this information, the opportunity cost of one fish is: a. 2 bananas. b. 1/2 bananas. c. 5 bananas. d. 2 1/2 bananas. e. zero, since you can t compare bananas and fish. 15. Whatever else you learned about profit-maximization, you should have learned this: Maximum profit is obtained at the production level where a. P = AC b. TR = TC c. MR =Show MoreRelatedProduction Possibility Curve Essay1259 Words   |  6 Pageseconomies have a production possibility curve and there any many different things that effect it. The removal of trade barriers or also known as free trade is not exempt from this list of things that affect an economies production possibility curve. Reduction in trade barriers can cause a country’s production possibility curve to shift outward. That is just one of many reasons that could cause an economy’s production possibility curve to shift outward. This production possibility curve can also determineRead MoreProduction Possibilities Curve1519 Words   |  6 Pagesï » ¿Does a reduction in trade barriers cause a country to move closer to its production possibilities curve or does it cause the production possibil ities curve to shift outward? Reduction in trade barriers causes a countrys production possibilities curve to move outward because of limited resources. Lets the Europe for an example, It has a population is close to 731 million and it is rich in skilled labor. It has big economies such as France, England and Germany but it does not have much raw materialsRead MoreThe Production Possibilities Frontier1083 Words   |  4 Pageseconomy. The production possibilities frontier will move outward, and the economy will move closer to the production possibilities frontier. Both outcomes are related. Freer trade creates more markets for the country for its goods and services. This allows companies to produce more, but it does not directly change the production capacity of the nation. Thus, the economy moves closer to the production possibilities frontier (Rittenberg Tregarthen, 2009). The reason that the production possibilitiesRead MoreMacroeconomics : A Nation s Levels Of Unemployment1376 Words   |  6 PagesCongregado et al, 2012). The curve for production possibilities indicate that outcomes or else combinations of the productions that can be produced at levels which are available in terms of the resources. 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A PPF is show the consumers goods andRead MoreReview for Midterm I1634 Words   |  7 PagesShawn can produce more donuts in one day than Sue can produce in one day, then a. | Shawn has a comparative advantage in the production of donuts. | b. | Sue has a comparative advantage in the production of donuts. | c. | Shawn has an absolute advantage in the production of donuts. | d. | Sue has an absolute advantage in the production of donuts. | ____3.Which of the following statements is not correct? a. | Trade allows for specialization. | bRead MoreMacro Eco1739 Words   |  7 PagesEconolands Production Possibility Frontier (PPF) we first need to understand what is a PPF. A production possibilities frontier (PPF) is a graph showing the different quantities of two goods that an economy can efficiently produce with limited productive resources. Points along the curve describe the trade-off between the two goods, that is, the opportunity cost. Opportunity cost here measures how much an additional unit of one good costs in units forgone of the other good. The curve illustrates