Question 1 0.5 pts The production possibilities frontier is the boundary between the O wanted and unwanted combinations of goods and services. 0 rational and irrational choices facing a society. 0 affordable and unaffordable combinations of production. 0 attainable and unattainable combinations of goods and services. 0 goods and services that the economy can produce. Question 2 0.5 pts Soda (hundreds of gallons per day) 0 I 2 3 4 5 6 Bottled water (hundreds of gallons per day) In the above gure, Jack's opportunity cost of producing 1 gallon of soda is of bottled water. 0 6 gallons 0 1/2 of a gallon O 1/4 of a gallon O 2 gallons 0 1 gallon Question 3 0.5 pts In one hourJohn can produce 20 loaves of bread or 8 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true? 0 John has an absolute advantage in both goods. 0 Phyllis has an absolute advantage in both goods. 0 Phyllis has a comparative advantage in producing bread. 0 John has a comparative advantage in producing cakes. O Phyllis has a comparative advantage in producing both cakes and bread. Which of the following is correct about comparative advantage? O A comparative advantage in a good means that the country can produce more of the good than any other country. O A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country. O Some countries will have a comparative advantage in everything. O Having a comparative advantage without an absolute advantage is impossible. O None of the above answers is correct.Question 5 0.5 pts Bread Books runaway (number) (number) A 0 1,010 B 1m 900 C 200 700 o 3m 400 E 400 o The table above shows a production possibilities frontier for an economy. Which of the following combinations is unattainable? O 0 loaves of bread and 800 books 0 300 loaves of bread and 200 books 0 0 loaves of bread and 0 books 0 200 loaves of bread and 800 books 0 100 loaves of bread and 800 books Question 6 0.5 pts In one hour John can produce 20 loaves of bread or 16 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true? 0 John has a comparative advantage in producing cakes. O Phyllis has a comparative advantage in producing both cakes and bread. 0 John has an absolute advantage in both goods. 0 Phyllis has a comparative advantage in producing bread. 0 Phyllis has an absolute advantage in both goods. Question 7 0.5 pts When a country's production possibilities frontier shifts outward over time, the country is experiencing O a decrease in unemployment of resources. 0 an end to opportunity cost. 0 economic growth. 0 no opportunity cost. 0 higher unemployment of resources. Question 8 0.5 pts Bread soda Possibility (number) (number) A 0 1,000 B 100 900 c 200 700 o 300 400 E 400 0 The table above shows the production possibilities for an economy. Drawing a PPF with books on the vertical axis and bread on the horizontal axis, a movement from possibility B to possibility C to possibility D shows the opportunity cost of moving down along the PPF. 0 bread is decreasing 0 books is constant 0 books is decreasing 0 books and bread are both increasing 0 bread is increasing Question 9 0.5 pts The opportunity cost of producing one more unit of a good is calculated by dividing the 0 price of the good whose opportunity cost we are calculating by the number of units of the other good that are forgone. 0 decrease in the quantity of the other good by the increase in the quantity of the good whose opportunity cost we're calculating. 0 total quantity of the other good by the total quantity of the good whose opportunity cost we're calculating. 0 increase in the quantity of that good by the decrease in the quantity of other good. 0 total quantity of that good by the total quantity of other good. Question 10 0.5 pts Which of the following best describes comparative advantage? 0 having the largest number of resources compared to other countries 0 forgoing the fewest units of one product to produce a unit of another product 0 being able to produce more output than any other country 0 using the fewest number of resources to produce a given amount of output Q It is the same as absolute advantage