Production possibilities curve

Assignment Help Microeconomics
Reference no: EM13104647

Question 1

Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric lawnmowers manufactured in Alphonia would most likely be:

A. lower selling prices on electric lawnmowers in Alphonia.

B. an increased market share for Alphonian-manufactured electric lawnmowers in Omegalon.

C. higher selling prices on electric lawnmowers in Omegalon.

D. increased exports of electric lawnmowers from Alphonia.

Question 2 

The production possibilities curve represents the set of all:

A. factors of production that can be used to manufacture goods and services.

B. nonlinear forms of production in the economy.

C. feasible combinations of goods that the economy can produce given that a nation's resources are fully employed.

D. combinations of goods and services that can be used in the production of other goods and services.

Question 3 

Which of the following benefits from a quota or VER?

A. consumers

B. the government

C. domestic producers

D. all of the above

Question 4 


Russia

Panama

Gloves

40

240

Hats

120

180

Table 1

Refer to Table 1. The opportunity cost of a glove in Panama is:

A. 1/8 of a hat.

B. 3/4 of a hat.

C. 4/3 hats.

D. 8 hats.

Question 5


Russia

Panama

Gloves

40

240

Hats

120

180

 

Table 1

Refer to Table 1. Panama has a comparative advantage in:

A. hats.

B. gloves.

C. both hats and gloves.

D. neither hats nor gloves.

Question 6 

The opportunity cost of something is:

A. the price you pay for the good.

B. what you are willing to pay for the good.

C. what you sacrifice to get the good.

D. a measure of the scarcity of the good.

Question 7 

The case of Airbus, an airplane manufacturing consortium in Europe, which receives large subsidies from several European countries, best exemplifies which rationale for protectionist policies?

A. shielding workers from foreign competition

B. helping domestic firms establish monopolies in world markets

C. protecting infant industries

D. prevention of dumping in local markets

Question 8 

The government can facilitate the transfer of unskilled workers to high-skilled jobs by:

A. laying off skilled workers to provide jobs for unskilled workers.

B. increasing tariffs to speed the development of jobs requiring skilled labor.

C. providing assistance for education and training for unskilled workers.

D. increasing tariffs to help unskilled workers.

Question 9 

Import bans, import quotas, voluntary export restraints, and tariffs on goods all:

A. decrease equilibrium quantity and prices.

B. decrease equilibrium quantities, but increase prices.

C. increase equilibrium quantities, but decrease prices.

D. increase equilibrium quantity and prices.

Question 10 

If Italy can produce grapes at a lower opportunity cost than any other nation, Italy is said to have a(n) ________ in the production of grapes.

A. comparative advantage

B. autarky

C. comparative disadvantage

D. absolute advantage

Question 11 

A possible reason a nation might impose a protectionist policy such as a tariff is to:

A. encourage specialization in the good in which the nation has a comparative advantage.

B. increase the level of imports.

C. increase the welfare of domestic consumers.

D. help domestic firms establish a world monopoly in a particular market.

Question 12 

Which of the following situations will arise in the domestic market following the imposition of an import ban?

A. imports increase, domestic production decreases, prices decrease

B. imports decrease, domestic production increases, prices increase

C. imports increase, domestic production increases, prices increase

D. imports decrease, domestic production increases, prices decrease

Question 13 

The slope of the production possibilities curve is:

A. the opportunity cost of one good in terms of the other.

B. positive.

C. positive and decreasing.

D. positive and increasing.

Question 14 

________ occurs when a firm cuts prices below production costs in a deliberate attempt to drive competitors out of business.

A. Voracious dumping

B. Deliberate dumping

C. Ravaging dumping

D. Predatory dumping

Question 15 

Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?

A. imports decrease, domestic production increases, prices increase

B. imports increase, domestic production increases, prices increase

C. imports increase, domestic production decreases, prices decrease

D. imports decrease, domestic production increases, prices decrease

Question 16 


Russia

Panama

Gloves

40

240

Hats

120

180

Table 1

Refer to Table 1. The opportunity cost of a hat in Russia is:

A. 1/3 of a glove.

B. 1/2 of a glove.

C. 2 gloves.

D. 3 gloves.

Question 17 

Which of the following situations will arise in the domestic market following the imposition of a tariff?

A. imports increase, domestic production decreases, prices decrease

B. imports increase, domestic production increases, prices increase

C. imports decrease, domestic production increases, prices decrease

D. imports decrease, domestic production increases, prices increase

Question 18 

A U.S. boycott against Mexican tuna caught in nets was:

A. not upheld by the WTO on the grounds that killing dolphins in tuna nets does not harm the United States directly.

B. upheld by the WTO on the grounds that nations can impose any environmental standards on other nations.

C. not upheld by the WTO on the grounds that U.S. ships could still use nets to catch tuna.

D. upheld by the WTO on the grounds that the use of nets to catch tuna also kills dolphins.

Question 19 

Dumping occurs when a firm:

A. stops selling to a foreign market due to excessive tariffs.

B. generates toxic waste when producing export goods and then dumps the waste in the ocean.

C. charges a lower price to a foreign market than either the price charged in its home market or the production costs.

D. charges a higher price to a foreign market than either the price charged in its home market or the production costs.

Question 20 

The example of the VCRs from Korea illustrates dumping due to:

A. retaliatory trade practices.

B. predatory pricing.

C. price discrimination.

D. avoidance of environmental laws.

Reference no: EM13104647

Questions Cloud

Calculate total cost of increasing regular production : You would like to construct an aggregate production plan for product X341 for the next four quarters. The forecasted demand for the next four quarters are: 500, 1000, 400, and 1200 units.
Determine the amplitude of propagation of the wave : The equation of a transverse wave traveling along a very long string is y = 5.0 sin (0.055 ?x + 6.0 ?t), where x and y are expressed in centimeters and t is in seconds. Determine the amplitude of propagation of the wave.
Explain issue-opportunity or problem from student website : Recognize the research issue, opportunity, or problem from one of data sets available on student website. Data must consist of at least 30 or more observations of ratio or interval scale data from one of provided data sets.
What is the speed of electron when it is away from charge : Two stationary positive point charges, charge 1 of magnitude 3.80 and charge 2 of magnitude 1.95 , are separated by a distance of 38.0 . An electron is released from rest at the point midway between the two charges.
Production possibilities curve : The production possibilities curve represents the set of all and the opportunity cost of a glove in Panama - an airplane manufacturing consortium in Europe, which receives large subsidies from several European countries.
Estimating the annual salary in the population : What size random sample should you take if you want to estimate the annual salary in the population with 99 percent confidence and a maximum margin of error of $250?
Case study - j smith & associates : J. Smith & Associates have requested your firm to submit a project summary regarding opening a new division office in Scottsdale, Arizona. This new office will serve as a regional headquarters for Arizona, Nevada, Colorado, New Mexico and California.
What was the spring constant of the super bungee : What was the spring constant of the Super Bungee? How much time after the Super Bungee was attached did it take the bus to stop.
Determine the major types of contracting officers : Determine the four major types of contracting officers and analyze how they differ in scope and responsibility from one another.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Question about marginal benefit curves

When negative or positive externalities exist economists say that market has unsuccessful to make the right amount of the good at the right price. What do economists mean through this?

  Find out all pareto optimal allocations and graph

Give a definition of Pareto Optimal Allocation in this economy. Find out all Pareto optimal allocations and graph them in the Edge worth Box and also describe what is the theory of Second Best? Prove the theorem by using a diagram.

  Price leadership model versus contestable markets model

An industry with twenty companies but the CR = 80 percent is called "high concentration", for a concentration ratio of 80 to 100% is viewed as high concentration.

  Describe overhead cost discussion

Assume the following was overheard at the water cooler: "I think our medical device company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs."

  Compute preferred stock required rate of return

EMC has preferred stock outstanding which pays a dividend of $5.00 at the end of each year. This stock was issued in perpetuity and has no maturity date.

  Constrained optimisation model

Constrained optimisation model

  Impact of incentives on production plans

Suppose you manage a United States based firm that makes shoe laces that you sell in a highly competitive market your shoe laces are considered a standardized commodity through your consumers

  How can quantity demanded be changed

What are some things that would affect changes in supply? How can quantity demanded be changed and what if the government raised the minimum wage. How would this policy effect your firm?

  Expenditure versus income approach to gdp

Differentiate the expenditure versus income approach to GDP and discuss why are the results the same? What are some of the drawbacks of using GDP while doing international comparisons among countries?

  Compute the hhi

Five Companies sell pez candy and differentiate in terms of customer service and flavors

  Description of demand function

The general demand function for a good, Good A, is: Is Good A a normal good or an inferior good? How do we know exactly?

  Determine the optimal pricing strategy

Suppose you own a franchise of rental car bureaues in Florida. You recently get a report indicating that about 80% of all tourists visit Florida during winter months in any given year,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd