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.

2 packets
1/2 packet
0 packets
1 packet

Joe's hot dog stand can produce hot dogs and hamburgers. The table gives Joe's production possibilities. The opportunity cost of _________________________.

the first 10 hot dogs is 20 hamburgers
the 20th hot dog is 1 hamburger.
the 40th hamburger is 10 hot dogs
1 hamburger is 10 hot dogs

As Rainclouds Inc. moves along its production possibility frontier in the direction of the arrow in the figure, the opportunity cost of a raincoat _____________________.

increases
depends on the initial quantity produced
remains the same
decreases

Victor currently produces nuts and bolts at point a in the figure. Victor's marginal cost of producing an additional nut is ________.

1 bolt
1/2 bolt
8 bolts
8/6 bolts

The table shows the marginal benefit from pizza and the marginal cost of pizza in cans of pop forgone. At the quantity of pizza produced, the quantity of pop 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.

any quantity greater than 50
any quantity less than 50
40
50

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

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

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

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

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

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