The Economic Problem

2. 3 The Economic Problem CLICKER QUESTIONS

3. Checkpoint 3.4 Checkpoint 3.1 Checkpoint 3.3 Question 5 Question 1 Question 8 Question 6 Question 2 Question 9 Question 7 Question 10 Checkpoint 3.2 Question 3 Question 4

4. CHECKPOINT 3.1 Question 1 Points inside the PPF are all ___________. • unattainable and have fully employed resources • attainable and have fully employed resources • unattainable and have some unemployed resources • attainable and have some unemployed resources • unaffordable and productive resources are misallocated

5. CHECKPOINT 3.1 Question 2 Moving along the production possibilities frontier itself illustrates _________. • the existence of a tradeoff between goods produced • unemployment of productive resources. • the existence of free lunches. • how the efficiency of production changes with tradeoffs • how tradeoffs do not occur if the production is efficient.

6. CHECKPOINT 3.2 Question 3 Moving along its PPF, a country produces 8 additional desktop computers and its production of laptop computers decreases by 4. The opportunity cost of 1 desktop computer is _______. • 4 laptop computers • 8 desktop computers • 1 desktop computer • 2 laptop computers • 1/2 of a laptop computer

7. CHECKPOINT 3.2 Question 4 A country produces only cans and bottles. If the country produces on its PPF and increases its production of cans, the opportunity cost of an additional ______. • can increases • can decreases • can is constant, but the opportunity cost of an additional bottle increases • bottle increases • can or an additional bottle increases

8. CHECKPOINT 3.3 Question 5 If a nation devotes a larger share of its current production to consumption goods, then ________. • its economic growth will slow down • its production possibilities will expand • its production possibilities will shrink • some factors of production will become unemployed • it must producing at the efficient point on its PPF

9. CHECKPOINT 3.3 Question 6 The opportunity cost of economic growth is ____ current consumption and the benefit of economic growth is ____ future consumption. • increased; increased • increased; decreased • no loss of; increased • decreased; increased • decreased; decreased

10. CHECKPOINT 3.3 Question 7 In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Scott’s opportunity cost of producing 1 taco is ________. • 1/2 of a pizza • 1 pizza • 2 pizzas • 20 pizzas • 2 tacos

11. CHECKPOINT 3.4 Question 8 In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. • Cindy has a comparative advantage in producing tacos. • Scott has a comparative advantage in producing tacos. • Both Cindy and Scott have a comparative advantage in producing tacos. • Neither has a comparative advantage in producing tacos. • Scott has a comparative advantage in producing pizzas.

12. CHECKPOINT 3.4 Question 9 In one hour John can produce 20 loaves of bread or 8 cakes and Phyllis can produce 30 loaves of bread or 15 cakes. John and Phyllis will reap the largest gains from specialization and trade if John produces _____ and Phyllis produces ______. • only loaves; only cakes • only cakes; only loaves • both loaves and cakes; only loaves • only cakes; both loaves and cakes • both loaves and cakes; both loaves and cakes

13. CHECKPOINT 3.4 Question 10 If Sue and Mark reap the maximum gains from trade, together they produce ______. • 6 shirts and 6 blouses • 4 shirts and 6 blouses • 6 shirts and 2 blouses • 4 shirts and 4 blouses • 2 shirts and 2 blouses