The opportunity cost of moving from point a to point b in the figure

3/2 pairs of socks per sweater.
2 sweaters.
is zero.
3 pairs of socks.

An economy produces at point a on the PPF shown in the figure. A drought reduces the amount of wheat produced and the economy produces at point b. The opportunity cost of a unit of wheat

is impossible to calculate without numbers on the axes.
increases.
decreases.
remain the same.

The opportunity cost of producing a unit of consumption at point a in the figure is ________________ point b.

cannot be compared with
the same as
greater than at
less than at

Leisure Land produces only sun screen and camel rides. All the following are efficient except production

that does not misallocate resources.
that does not waste resources.
on the production possibility frontier.
inside the production possibility frontier.

Two countries, Alpha and Beta, have identical production possibility frontiers. If Alpha produces at point a and Beta produces at point b,

Beta's future consumption will be greater than Alpha's.
Alpha's and Beta's economic growth rates will be the same.
Alpha consumes less than Beta today, but it will grow faster than Beta.
Beta's economic growth rate will exceed Alpha's.

As a country that has a bowed-out production possibility frontier produces more of the good in which it has a comparative advantage, the opportunity cost of a unit of that good

might increase or decrease.
decreases.
increases.
remains the same.

Two countries, Blue Violet and Orange Rose, produce only two goods: teapots and coffeepots. The table gives their production possibilities. ____________has a comparative advantage in teapots and _____________ has a comparative advantage in coffeepots.

Orange Rose, Blue Violet
Blue Violet, Blue Violet
Blue Violet, Orange Rose
Orange Rose, Orange Rose

Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table gives their production possibilities:

Sweet Pansy has an absolute advantage in teapots.
Sweet Pansy has a comparative advantage in teapots.
Blue Violet has a comparative advantage in teapots.
Both have a comparative advantage in teapots.

Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table gives their production possibilities. With specialization and trade, Sweet Pansy produces _______________ and Blue Violet produces ________________.

150 teapots and 150 coffeepots, nothing
150 teapots, 75 coffeepots
150 coffeepots, 150 teapots
100 teapots and 25 coffeepots, 100 teapots and 50 coffeepots

A country that has a comparative advantage in producing capital goods will __________________ a country that has a comparative advantage in consumption goods.

reap all of the gains from trade with
reap more of the gains from trade with
specialize in producing capital goods and trade with
grow faster than