Ivy Software Econ Final UPDATED
ACTUAL Questions and CORRECT
Answers
According to the table, what is the opportunity cost of producing one pair of yellow in Chicago?
# of yellow shoes - 12 (Chicago), 6 (Chicago)
# of blue shoes - 16 (New York), 4 (New York) - CORRECT ANSWER - 1/2 pair of blue
shoes
= 1.5; .5 of a blue shoe
According to the graph, if the economy is producing 50 guns and 225 units of butter, then the
opportunity cost of producing an additional 10 guns is - CORRECT ANSWER - 35 units
of butter
225-190=35
Look at the line chart. Find 225 on the Y axis and 50 & 60 on the X axis. Find where they meet
and subtract the 225 from the 190.
The main concept demonstrated in the production possibilities frontier is - CORRECT
ANSWER - Opportunity cost
Assume a production possibilities frontier for pickup trucks and big Mac hamburgers. The
economy is producing 20 big Mac hamburgers and 65 pickup trucks (point 20, 65). What is the
opportunity cost of producing an additional 20 big Mac hamburgers (point 40, 60)? - CORRECT
ANSWER - Five pickup trucks
Producing = 20 Big Macs, 65 trucks
,App cost of producing 20 MORE big macs = 40, 60 trucks
Subtract 65-60 = 5
According to the table, which location has a comparative advantage in the production of yellow
shoes?
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - New York
= .5
= .25 (New York)
According to the table, which location should specialize in the production of yellow shoes and
which location should specialize in the production of blue shoes?
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - Chicago should
specialize in the production of blue shoes and New York should specialize in the production of
yellow shoes
According to the table, which location has a comparative advantage in the production of blue
shoes?
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - Chicago
= 2
= 4
, According to the figure, the bundle located at 40 guns and 75 units of butter is - CORRECT
ANSWER - An inefficient outcome
Find 75 on the Y axis and 40 on the X axis and meet in the middle. If the point is not on the
drawn line, it is inefficient
The opportunity cost of an item is - CORRECT ANSWER - whatever must be given up to
obtain the item
According to the table, what is the opportunity cost of producing one pair of blue shoes in New
York
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - 4 pairs of yellow
shoes
= 4
When country A has a lower opportunity cost of producing sugar relative to country B, then
country A is said to have - CORRECT ANSWER - A comparative advantage
When an economy does not fully use its factors of production, then it ends up at a location
_____the production possibilities frontier - CORRECT ANSWER - Inside
According to the table, which location has an absolute advantage in the production of a pair of
yellow shoes?
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - New York
ACTUAL Questions and CORRECT
Answers
According to the table, what is the opportunity cost of producing one pair of yellow in Chicago?
# of yellow shoes - 12 (Chicago), 6 (Chicago)
# of blue shoes - 16 (New York), 4 (New York) - CORRECT ANSWER - 1/2 pair of blue
shoes
= 1.5; .5 of a blue shoe
According to the graph, if the economy is producing 50 guns and 225 units of butter, then the
opportunity cost of producing an additional 10 guns is - CORRECT ANSWER - 35 units
of butter
225-190=35
Look at the line chart. Find 225 on the Y axis and 50 & 60 on the X axis. Find where they meet
and subtract the 225 from the 190.
The main concept demonstrated in the production possibilities frontier is - CORRECT
ANSWER - Opportunity cost
Assume a production possibilities frontier for pickup trucks and big Mac hamburgers. The
economy is producing 20 big Mac hamburgers and 65 pickup trucks (point 20, 65). What is the
opportunity cost of producing an additional 20 big Mac hamburgers (point 40, 60)? - CORRECT
ANSWER - Five pickup trucks
Producing = 20 Big Macs, 65 trucks
,App cost of producing 20 MORE big macs = 40, 60 trucks
Subtract 65-60 = 5
According to the table, which location has a comparative advantage in the production of yellow
shoes?
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - New York
= .5
= .25 (New York)
According to the table, which location should specialize in the production of yellow shoes and
which location should specialize in the production of blue shoes?
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - Chicago should
specialize in the production of blue shoes and New York should specialize in the production of
yellow shoes
According to the table, which location has a comparative advantage in the production of blue
shoes?
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - Chicago
= 2
= 4
, According to the figure, the bundle located at 40 guns and 75 units of butter is - CORRECT
ANSWER - An inefficient outcome
Find 75 on the Y axis and 40 on the X axis and meet in the middle. If the point is not on the
drawn line, it is inefficient
The opportunity cost of an item is - CORRECT ANSWER - whatever must be given up to
obtain the item
According to the table, what is the opportunity cost of producing one pair of blue shoes in New
York
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - 4 pairs of yellow
shoes
= 4
When country A has a lower opportunity cost of producing sugar relative to country B, then
country A is said to have - CORRECT ANSWER - A comparative advantage
When an economy does not fully use its factors of production, then it ends up at a location
_____the production possibilities frontier - CORRECT ANSWER - Inside
According to the table, which location has an absolute advantage in the production of a pair of
yellow shoes?
# of yellow shoes: 12 (Chicago), 6 (Chicago)
# of blue shoes: 16 (New York), 4(New York) - CORRECT ANSWER - New York
