Figure 2-7 Pakistan Indonesia Cashews (kilograms) Cashews (kilograms) 120! 240 320 Cotton Cotton (bolts) (bolts) Figure 2-7 shows the production possibility frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. 104) Refer to Figure 2-7. What is the opportunity cost of producing 1 bolt of cotton in Indonesia? A) 3/8 of a kilogram of cashews B) 5/8 of a kilogram of cashews C)2 2/3 kilograms of cashews D) 120 kilograms of cashews 105) Refer to Figure 2-7. What is the opportunity cost of producing 1 kilogram of cashews in Pakistan? A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 1 3/5 bolts of cotton D) 240 bolts of cotton 106) Refer to Figure 2-7. What is the opportunity cost of producing 1 kilogram of cashews in Indonesia? A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 2 2/3 bolts of cotton D) 320 bolts of cotton 107) Refer to Figure 2-7. Which country has a comparative advantage in the production of cotton? A) Indonesia B) They have equal productive abilities. C) Pakistan D) Neither country 108) Refer to Figure 2-7. Which country has a comparative advantage in the production of cashews? A) Indonesia B) They have equal productive abilities. C) Pakistan D) Neither country 109) Refer to Figure 2-7. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton? A) Indonesia B) They have the same advantage. C) Pakistan D) It cannot be determined. Figure 2-3 Food products Plastic products Figure 2-3 shows various points on three different production possibility frontiers for a nation. could accur because of an inde immigrant Labour 41) Refer to Figure 2-3. A movement from A) WV B) XtW WZ D Y to w _ is the result of negative technological change in plastic production 2) Refer to Figure 2-3. A movement from. A) Vte X ) Xow Waz D) Z toy 43) Refer to Figure 2-3. Consider the following events a a decrease in the employment rate an increase in a nation's money supply an influx of immigrant workers h c Which of the events listed above could cause a movement from X to Z? A) a and only 3) a and only Canly Diconly 44) Refer to Figure 2-3. Consider the following movements: a. from point to point W from point to point Y c. from point Y to point Z Which of the movements listed above represents advancements in technology with respect to only plastic production? A) bande B) and only c) only D) conly 45) Refer to Figure 2-3. Consider the following events. a. an increase in the unemployment rate general technological advancement a dease in consumer wealth Which of the events listed above could cause a movement from X to V? A) a only B) a and only C) and only D) a, bande a 46) Refer to Figure 2-3. Consider the following events an increase in the patent protection period to 30 years an increase of a nation's capital stock an improved property rights system c Which of the events listed above could cause a movement from VtW? A) a only B) and only a and conly Da bande 18) _ marginal opportunity cost implies that the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts. A) Increasing B) Decreasing C) Constant D) Negative 19) If anhuni che are instant thanmuuction mecihilihu fruntier wudhe aranhadas 69) The opportunity cost of going to an outdoor music festival is A) the enjoyment you receive from going to the festival. B) the value of the time spent at the festival. C) equal to the highest value of an alternative use of the time and money spent on the festival D) zero because there are no overhead costs for an outdoor festival