Tutorial Wk2

Multiple Choice Questiona

 If a country experiences increasing opportunity costs, its production possibilities curve will A. be a straight line. B. bow outward. C. bow inward. D. shift out from the origin E. shift in toward the origin F. I don't know

 According to the Low-Hanging Fruit Principle, in expanding production of a good, you should first employ those resources A. where you have comparative advantage. B. where you have absolute advantage. C. with the highest opportunity cost. D. with the lowest opportunity cost. E. that have the lowest price. F. I don't know

 In a certain economy, peanuts and books are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more peanuts and more books, relative to the quantities of those goods that are being produced now? A. Unemployed labor is put to work producing peanuts and books B. The economy puts its idle capital to work producing peanuts and books C. The economy experiences economic growth D. All of the above are correct E. I don't know

Which point could represent production in the economy if it were experiencing unemployment? a, b c d

Open Questions 1, 5,6,7,8,9 1, 5,6,7,8,9

Question 5

Question 6

Question 7

By the end of this chapter you should be able to Define comparative advantage Define comparative advantage Define absolute advantage Define absolute advantage Use opportunity cost to determine comparative advantage Use opportunity cost to determine comparative advantage Use opportunity cost to determine absolute advantage Use opportunity cost to determine absolute advantage Explain the Principle of Comparative Advantage Explain the Principle of Comparative Advantage Discuss the sources of comparative advantage Discuss the sources of comparative advantage Identify a production possibilities curve Identify a production possibilities curve Graph a production possibilities curve Graph a production possibilities curve

By the end of this chapter you should be able to Identify attainable and unattainable points on a production possibilities curve Identify attainable and unattainable points on a production possibilities curve Identify efficient and inefficient points on a production possibilities curve Identify efficient and inefficient points on a production possibilities curve Explain why a production possibilities curve is downward sloping Explain why a production possibilities curve is downward sloping Calculate the slope of a production possibilities curve Calculate the slope of a production possibilities curve Explain the Principle of Increasing Opportunity Cost ("The Low Hanging Fruit Principle") Explain the Principle of Increasing Opportunity Cost ("The Low Hanging Fruit Principle") Identify the benefits from specialization Identify the benefits from specialization Discuss the conditions that result in the greatest benefits from specialization Discuss the conditions that result in the greatest benefits from specialization Discuss why more specialization is not always better Discuss why more specialization is not always better

Next Week Demand and Supply part 1 (till page 81)