B) shows the marginal opportunity cost of production of one of the good in terms of the other
Some of the countries capital equipment is destroyed by tornado
5) General population became more educated
6) all of the above might shift PPF
7) 2. A and B are the only countries in the world, which produce oil and cars. The only resource is labour. Transportation costs could be ignored. It takes three man hours for a country A to produce a barrel of oil and 30 - to produce a car. In country B it takes 10 men hours to produce a barrel of oil and 16 hours - to produce a car. Choose correct statements from the list below:
8) A has absolute advantage in producing both oil and cars, so there is no reason for it to trade
9) If it is possible to buy six barrels of oil for one car, A will trade
Market price, that will be beneficial for both countries, exist
11)B has comparative advantage in producing oil and A in producing cars
12)more than one is correct
13)none of these correct
Choose correct statements from the below:
А) positive accounting profit includes negative economic profit when OC is positive
B) positive economic profit includes positive accounting profit when OC is 0
C) OC can't be negative
Union of countries with linear PPF leads to which changes in their aggregate PPF:
A) A horizontal sum of the individual PPF's
B) A vertical sum of the individual PPFs
C) The frontier of the set representing the intersection of individual production possibility sets
D) The frontier of set representing the union of individual production possibilities sets
E) A line obtained by combining individual PPF's in order of increasing (in absolute values) slopes from left to right
The opportunity cost of owing a business could correspond to each of the following:
A) economic profits earned in the business
B) the accounting profits earned in the business
C) the profits that could be earned in another business using the same amount of resources
Suppose the two countries are producing microwaves and beer. Their production possibility frontiers are represented by the graphs below.
Which is true for these two countries:
A)neither country has a comparative advantage in production of either good
B) neither country has an absolute advantage in production of either good
C) trade is beneficial for both countries
D) trade is only beneficial for country A
E) none of the above
based on the information in the graphs it may be concluded that:
A)opportunity cost of production of beer is increasing in both countries
B) Opportunity cost of beer is increasing in country B
C) opportunity cost of production of microwaves in constant in both countries
D) Opportunity cost of production of microwaves is constant in country A
E) none of the above
Which of the following will cause an inward shift of the production possibility curve:
A) a technological breakthrough
B) increase in immigration
C) increase in the level of education
D) a natural disaster
E) none of the above
Scarcity:
A) only exists in market economy
B) only exists in planned economy
C) is based on the general greediness of people
D) exist because of difference in one's needs and wants
E) exist because of difference in one's desires and possibilities
Which of the following points are productively inefficient:
A) a
B) C
C) BCD
D) BD
E) E
The slope of the production possibility frontier shows:
A) the ratio of prices of goods
B) shows the marginal opportunity cost of production of one of the good in terms of the other
C)is always constant
Consider two countries China and Russia both producing cars and civilian aircraft. Civilian aircraft is one of the leading items of China's exports while cars, mostly Russian, are one of the principal components of China's imports. therefore it is likely that:
A) China will have an absolute advantage in producing cars whereas Russia will have an absolute advantage in producing aircraft.
B) Russia will have a comparative advantage in aircraft while China will have a comparative advantage in cars.
C) Russia will have a comparative advantage in both goods, since the average productivity of Russia's workers is higher
D) Opportunity cost of producing one aircraft in terms of cars will be lower in China than in Russia
E) China must be interested in restricting car import the support of the massing car manufacturers
The country's going to specialise in the production of the good if it has ... in it.
A)competitive advantage
B) absolute advantage
C) either comparative or absolute advantage
D) only both comparative and absolute advantage
E) strategic interest
Jenny is to decide whether to undertake masters program at ICEF or to start working. After investigating her labour opportunities, she concluded that she could work full time as a junior analysis for $500 per month, alternatively she could work as a free lancer translator for $400 per month well she well also being a tutor for $300 per month. what is Jenny's opportunity cost of studying, assuming that if she enters ICEF, she has absolutely no time for working?
A) 400
B) 500
C) 700
D) 300
E) 1,200
Which of the following resources are examples of capital