WGU c712 quiz #2, #3, #4, #5, #6, #7, #9, #10, #11 with COMPLETE SOLUTION

1. The production possibilities frontier illustrates A. Goods and services that people want. B. The limits to future growth of a nation. C. How money can be allocated among two kinds of goods. D. The minimum combinat ...

1. The production possibilities frontier illustrates A. Goods and services that people want. B. The limits to future growth of a nation. C. How money can be allocated among two kinds of goods. D. The minimum combination of goods and services that can be produced. E. The various combinations of output a nation can produce given its available resources and technology. - ✔✔E. The various combinations of output a nation can produce given its available resources and technology. Which of the following are assumptions used when drawing a production possibilities frontier? * A. Only two goods are considered. B. Demand equals supply. C. The level of technology is constant. D. How much of each good people want. - ✔✔A. Only two goods are considered. C. The level of technology is constant. In the production possibilities frontier model, an unattainable point lies A. On the production possibilities frontier. B. Inside the production possibilities frontier. C. Outside the production possibilities frontier. D. There are no unattainable points in the production possibilities frontier model. - ✔✔C. Outside the production possibilities frontier.On a production possibilities frontier, 5 guns and 12 pounds of butter can be produced. At another point on the same frontier, 3 guns and 13 pounds of butter can be produced. Between these points, what is the opportunity cost of a pound of butter? A. 2 pounds of butter B. 2 guns. C. 0.2 guns. D. 0.5 guns. E. 2.4 guns. - ✔✔B. 2 guns. 7. Production possibilities frontiers usually curve out and away from the origin because A. The more resources used to produce one good, the fewer resources are available to produce another good. B. As more of a good is produced, the opportunity cost decreases. C. Technological change happens. D. Some resources are better at producing one good, while other resources are better at producing the other good. E. As more of a good is produced, the opportunity cost doesn't change. - ✔✔D. Some resources are better at producing one good, while other resources are better at producing the other good. If a society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will A. shift leftward. B. Shift rightward. C. Not shift because the society moves from one point on the frontier to a point inside the frontier. D. Not shift because the society moves from a point inside the frontier to a point on the frontier.E. Not shift because the society moves from a point on the frontier to a point outside the frontier. - ✔✔D. Not shift because the society moves from a point inside the frontier to a point on the frontier. If Wendy can produce more of all goods than Tommy in an hour, then * A. Wendy has an absolute advantage in all goods. B. Wendy does not need to trade with Tommy in order to achieve the gains from trade. C. Wendy has a comparative advantage in all goods. D. Tommy has an absolute advantage in all goods. E. Only Tommy but not Wendy can benefit from trade between the two of them. - ✔✔A. Wendy has an absolute advantage in all goods. Two islands, North Island and South Island, produce food and clothing. If North Island uses all of it resources on food production, it can produce 250 units of food. If North Island uses all of its resources to make clothing, it can make 100 units of clothing. Meanwhile, if South Island uses all of it resources on food production, it can produce 125 units of food. If South Island uses all of its resources to make clothing, it can make 100 units of clothing. Which island has the absolute advantage in food production? *