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Chapter%202 - Chapter 2 _ 1. A production possibilities...

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Chapter 2 ____ 1. A production possibilities curve will be linear and not bowed out if a. no tradeoffs exist. b. the tradeoff between the two goods is always at a constant rate. c. unemployment is zero. d. resources are allocated efficiently. ____ 2. Which of the following is NOT correct? a. Trade allows for specialization. b. Trade is good for nations. c. Trade is based on absolute advantage. d. Trade allows individuals to consume outside of their individual production possibilities curve. Table 3-1 Labor Hours Needed to Make 1 Pound of: Pounds produced in 40 hours: Meat Potatoes Meat Potatoes Farmer 8 2 5 20 Rancher 4 5 10 8 ____ 3. Refer to Table 3-1. The opportunity cost of 1 pound of meat for the farmer is a. 1/4 hour of labor. b. 4 hours of labor. c. 4 pounds of potatoes. d. 1/4 pound of potatoes. ____ 4. Refer to Table 3-1. The opportunity cost of 1 pound of meat for the rancher is a. 4 hours of labor. b. 5 hours of labor. c. 5/4 pounds of potatoes. d. 4/5 pound of potatoes. ____ 5.
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This note was uploaded on 03/16/2010 for the course ECON 1 taught by Professor Tang during the Winter '08 term at UCSD.

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Chapter%202 - Chapter 2 _ 1. A production possibilities...

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