Problem Set #1
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m1_problem_sets.xlsxModule 1 Problem Sets
| Principles of Economics | ||||
| Name: | ||||
| Date: |
Question #1
| Question #1: List some constraints on our labor force that prevent our fully using our plant and equipment 24 hours a day, seven days a week | ||
| Answers: | ||
| 1 | ||
| 2 | ||
| 3 | ||
Question #2
| Question #2: When we are efficiently allocating our resources and using the best available technology, we are operating on our _________________________. |
| Answer: |
Question #3
| Question #3: Economic growth can be attained by: | |
| Answer: | |
| 1 | |
| 2 | |
Question #4
| Question #4: Full employment implies an unemployment rate of about ____________ percent. |
| Answer: |
Question #5
| Question #5: The law of increasing costs states that, as the output of one good expands, ________________________. |
| Answer: |
Question #6a
| Question #6a: If we were at point C, could we quickly produce substantially more houses and more cars? |
| Answer: |
Question #6b
| Question #6b: If we were at point M, could we quickly produce substantially more houses andmore cars? |
| Answer: |
Question #6c
| Question #6c: If we were at point C, could we quickly go to point J? |
| Answer: |
Question #7
| Question #7: Fill in the following points: | |
| Point X: where our economy generally operates | |
| Point Y: a serious recession | |
| Point Z: a catastrophic depression | |
| Point W: economic growth | |
| Answer: |
Question #8
| Question #8: Use the following illustration to answer the questions below: | ||
| a. What is the opportunity cost of going from point B to point C? | ||
| b. What is the opportunity cost of going from point D to point C? | ||
| c. What is the opportunity cost of gong from point B to point A? | ||
| d. What is the opportunity cost of going from point C to point D? | ||
| Answers: | ||
| a. | ||
| b. | ||
| c. | ||
| d. |
Question #9
| Question #9: The basis for international trade is _____________________________________. |
| Answer: |
Question #10
| Question #10: Brazil is better at producing ______________________________ |
| than at producing_______________________________________. |
| Argentina is better at producing _____________________________ |
| than at producing _______________________________________. |
| Answers: |
Question #11
| Question #11: If one (1) ton of steel could be traded for 1 ton of wheat, Brazil |
| would trade its _____________________________________ for Argentina's |
| _____________________________________________. |
| Answers: |
Question #12
| Question #11: Bolivia has a comparative advantage in the production of metal? |
| Answer: |
Question #13
| Question #13: Chile has a comparative advantage in the production of which metal? |
| Answer: |
Question #14
| Question #14: Bolivia will trade ____________________________ for _____________________________. |
| Answers: |
Question #15
| Question #15: Chile will trade __________________________________ for _______________________________________. |
| Answers: |
