Econ 5 Quiz

Another issue is export. What proportion of the nation's output that is potentially exportable is in fact exported? One way to address this more narrow question is to begin with the domestic output of the goods-producing sectors of the economy, as measured by the value of final exports of goods, plus change in goods inventories,

Problem #1: Using either a graph or table (Refer to page 22 for help with graphs and tables) use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced?

2. At what level of demand (in pounds) per year would these two alternatives be equal?

between the three countries. By the end of the 1900s there were 4,000 factories in

5. (TCO 1) If an economy is producing at a point inside a production possibilities curve, then

In Exhibit 2-19, the production possibilities curves for a country are shown for the years Year X and Year Y. Which of the following could have caused a shift for Year X to Year Y in production possibilities curves?

19. _______ is a situation in which one country is more efficient at producing a product than any other

An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from

A. Assume that country A and country B decide to use half of the resources in the production of each good. Indicate the points of the maximum output of each good on the graphs for each country as point A under such resource use.

1) Approximately three-fourths of the world's industrial production is concentrated in four regions. Which of the following is not one of these four regions?

This exercise illustrates how through using a decision tree, determination of an "optimal" production capacity option can be made from among several possible capacity options based on the provided probable market demand and expected costs/payoffs of events that influence the options.

Consider the production schedules for two fictional countries, Ying and Tai. Both countries can only produce two types of goods, Lychees and Teacups. The rows a to e depict the possible combinations of these two goods that each country can produce. Ying Number of Number of Lychees Teacups 0 12 2 Tai Number Lychees 4

5. How would you go about deciding the appropriate batch size for the Stonehaven factory? What factors would you consider? How do they interrelate? (You may wish to do some calculations, but concentrate on thinking conceptually.)

Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week.

Using the same amount of resources to produce two goods. Draw PPF curve and explain the reason of each question.