Unit 1 Review Day

Front

Analysis that involves comparing marginal benefits and marginal cost

Back

Marginal Analysis

Front

Comparative advantage explains which of the following?

Back

the source of gains from trade

Front

Suppose that in a day Jose Miguel can make three units of pancakes or one gallon of maple syrup, and Mia can make two units of pancakes or two gallons of maple syrup. Which of the following terms of trade would be mutually beneficial for Jose Miguel and Mia?

Back

Jose Miguel trades one unit pancakes for 1/2 gallon of maple syrup from Mia.

Front

Assume an economy is using all its available resources efficiently to produce only two goods, X and Y. As more of good X is produced, what happens to the production of good Y?

Back

Less of good Y is produced as resources move from producing good Y to producing good X.

Front

Which of the following points on the PPC above represents a combination of Steel & Wheat that this economy could NOT produce? A, G, D, F

Back

F

Front

Anika and Gabriel both sew t-shirts in a small factory. Using the same resources, Gabriel can sew twelve t-shirts and Anika can sew nine t-shirts in one day. Which of the following can be concluded from the given information?

Back

Gabriel has an absolute advantage in sewing t-shirts.

Front

Using the same amount of time and resources, Daniel can assemble either 10 bikes or 5 computers, whereas Marcela can assemble either 5 bikes or 5 computers. Based on the data, which of the following statements is correct? Marcela has an absolute advantage in assembling bikes. Marcela has an absolute advantage in assembling computers. Marcela has a comparative advantage in assembling bikes. Daniel has a comparative advantage in assembling bikes. Daniel has a comparative advantage in assembling both bikes and computers.

Back

Daniel has a comparative advantage in assembling bikes.

Front

Based on the table above, what is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Back

225 burgers

Front

Mark is deciding what to do after high school. Right now her two options are: go to college or get a job. She can only choose one. Mark decides to get a job. Which of the following is the opportunity cost of her decision?

Back

going to college

Front

What is the opportunity cost to Footville of increasing production of shoes from 400 to 600?

Back

300 socks