Eco03L3 1 The figure shows Freda's PPF. Freda currently produces 10 packets of fudge and no cookies. If Freda decides to produce 1 packet of cookies, her opportunity cost of the packet of cookies is _______of fudge. 0 packets 1/2 packet 2 packets 1 packet 2 Joe's hot dog stand can produce hot dogs and hamburgers. The table gives Joe's production possibilities. The opportunity cost of _________________________. 1 hamburger is 10 hot dogs the 20th hot dog is 1 hamburger. the first 10 hot dogs is 20 hamburgers the 40th hamburger is 10 hot dogs 3 As Rainclouds Inc. moves along its production possibility frontier in the direction of the arrow in the figure, the opportunity cost of a raincoat _____________________. decreases increases remains the same depends on the initial quantity produced 4 Victor currently produces nuts and bolts at point a in the figure. Victor's marginal cost of producing an additional nut is ________. 8/6 bolts 1 bolt 1/2 bolt 8 bolts 5 The table shows the marginal benefit from pizza and the marginal cost of pizza in cans of soda forgone. At the quantity of pizza produced, the quantity of soda that people are willing to give up to get a pizza is less than the quantity of pop that they must give. The quantity of pizzas produced is ________ a day. 50 40 30 any quantity less than 50 6 An economy that uses new technology ___________________________. experiences economic growth but incurs an opportunity cost moves along its PPF and incurs an opportunity cost does not incur an opportunity cost does not need to accumulate capital so economic growth is free 7 In March 1999, a factory used new technology to produce its output. Then in August 1999, a fire destroys half the factory. The new technology shifted the factory's PPF _________ and the fire shifted it __________. outward; inward outward; outward inward; outward inward; inward 8 In one day, Sue can change the oil on 15 cars or the tires on 10 cars. In one day, Fred can change the oil on 12 cars or the tires on 10 cars. Sue's opportunity cost of changing oil is _______ than Fred's and her opportunity cost for changing tires is _______ than Fred's. less; greater less; less greater; less greater; greater 9 In one day, Sue can change the oil on 15 cars or the tires on 10 cars. In one day, Fred can change the oil on 12 cars or the tires on 10 cars. Sue and Fred can gain from trade if Sue changes the _______ and Fred changes the _______. oil; tires tires; tires oil; oil tires; oil 10 A country that has an absolute advantage in producing all goods will usually ______________. have a comparative advantage in some goods but not all have a comparative advantage in all goods produce all goods at lowest opportunity cost not gain from specialization and trade Please enter your name and press the SEND button