Labor Hours Needed to Make 1
Quantity Produced in 36 Hours
Mittens
Hats
Mittens
Hats
Max
2
6
18
6
Min
2
4
18
9
51. Refer to Table 3-11. Assume that Max and Min each has 36 labor hours available. If each person divides his/her time
equally between the production of mittens and hats, then total production is
a.
18 mittens and 6 hats.
b.
18 mittens and 7.5 hats.
c.
16 mittens and 12 hats.
d.
36 mittens and 15 hats.
52. Refer to Table 3-11. Which of the following points would not be on Max’s production possibilities frontier, based on
a 36–hour production period?
a.
(18 mittens, 0 hats)
b.
(12 mittens, 2 hats)
c.
(6 mittens, 4 hats)
d.
(2 mittens, 6 hats)
53. Refer to Table 3-11. Which of the following points would be on Min’s production possibilities frontier, based on a
36-hour production period?
a.
(3 mittens, 8 hats)
b.
(8 mittens, 5 hat)
c.
(10 mittens, 4 hats)
d.
More than one of the above would be on Min’s production possibilities frontier.
Table 3-12
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up
and testing computers at a constant rate. The following table applies.
Minutes Needed to
Number of Computers Set Up or Tested in a 40-Hour Week
Set Up 1 Computer
Test 1 Computer
Computers Set Up
Computers Tested
Barb
48
?
50
40
Jim
30
40
80
60
54. Refer to Table 3-12. The number of minutes needed by Barb to test a computer is
a.
36.
b.
48.
c.
60.
d.
64.
55. Refer to Table 3-12. Which of the following points would not be on Barb’s production possibilities frontier, based on
a 40–hour week?
a.
(0 computers set up, 40 computers tested)
b.
(8 computers set up, 32 computers tested)
c.
(25 computers set up, 20 computers tested)
d.
(30 computers set up, 16 computers tested)
56. Refer to Table 3-12. Which of the following points would not be on Jim’s production possibilities frontier, based on a
40-hour week?
a.
(0 computers set up, 60 computers tested)
b.
(40 computers set up, 30 computers tested)
c.
(60 computers set up, 12 computers tested)
d.
(72 computers set up, 6 computers tested)
Table 3-13
Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch
between programming and testing cellular phones at a constant rate. The following table applies.
Minutes Needed to
Number of Cellular Phones Programmed or Tested in a 40-Hour
Week
Program 1 Cellular
Phone
Test 1 Cellular
Phone
Cellular Phones Programmed
Cellular Phones Tested
Juanita
?
2
160
1200
Shantala
10
4
240
600
57. Refer to Table 3-13. The number of minutes needed by Juanita to program a cellular phone is
a.
4.
b.
5.
c.
7.5.
d.
15.
58. Refer to Table 3-13. Which of the following points would be on Juanita’s production possibilities frontier, based on a
40-hour week?
a.
(120 cellular phones programmed, 295 cellular phones tested)
b.
(130 cellular phones programmed, 225 cellular phones tested)
c.
(140 cellular phones programmed, 155 cellular phones tested)
d.
Both (a) and (b) would be on Juanita’s production possibilities frontier.
59. Refer to Table 3-13. Which of the following points would be on Shantala’s production possibilities frontier, based on
a 40–hour week?
a.
(120 cellular phones programmed, 250 cellular phones tested)
b.
(180 cellular phones programmed, 150 cellular phones tested)
c.
(240 cellular phones programmed, 600 cellular phones tested)
d.
More than one of the above would be on Shantala’s production possibilities frontier.
Table 3-14
Assume that Nick and Faldo can switch between producing wheat and producing cloth at a constant rate.
Quantity Produced in 1 Hour
Bushels of Wheat
Yards of Cloth
Nick
8
12
Faldo
6
15
60. Refer to Table 3-14. Assume that Nick and Faldo each has 2 hours available. If each person divides his time equally
between the production of wheat and cloth, then total production is
a.
8 bushels of wheat and 15 yards of cloth.
b.
14 bushels of wheat and 27 yards of cloth.
c.
16 bushels of wheat and 30 yards of cloth.
d.
28 bushels of wheat and 34 yards of cloth.
Table 3-15
Labor Hours Needed to Make 1 Pound of
Amount Produced in 40 Hours
Meat
Potatoes
Meat
Potatoes
Farmer
8 hours/pound
5 hours/pound
5 pounds
8 pounds
Rancher
4 hours/pound
10 hours/pound
10 pounds
4 pounds
61. Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides
his time equally between the production of meat and potatoes, then total production is
a.
5 pounds of meat and 4 pounds of potatoes.
b.
6 pounds of meat and 7.5 pounds of potatoes.
c.
7.5 pounds of meat and 6 pounds of potatoes.
d.
10 pounds of meat and 8 pounds of potatoes.
62. Refer to Table 3-15. Which of the following combinations of meat and potatoes could the farmer produce in 40
hours?
a.
1 pound of meat and 7 pounds of potatoes.
b.
2 pounds of meat and 5 pounds of potatoes.
c.
3 pounds of meat and 3 pounds of potatoes.
d.
4 pounds of meat and 2 pounds of potatoes.
63. Refer to Table 3-15. Which of the following combinations of meat and potatoes could the rancher not produce in 40
hours?
a.
2 pounds of meat and 3 pounds of potatoes.
b.
3 pounds of meat and 3 pounds of potatoes.
c.
4 pounds of meat and 2 pounds of potatoes.
d.
5 pounds of meat and 2 pound of potatoes.
Table 3-16
The following table contains some production possibilities for an economy for a given month.
Blankets
Coats
8
600
12
?
16
200
64. Refer to Table 3-16. If the production possibilities frontier is bowed outward, then “?” could be
a.
200.
b.
300.
c.
400.
d.
500.
65. Refer to Table 3-16. If the production possibilities frontier is a straight line, then “?” must be
a.
200.
b.
300.
c.
400.
d.
500.
Table 3-17
The following table contains some production possibilities for an economy for a given year.
Cakes
Pies
10
600
20
400
30
?
66. Refer to Table 3-17. If the production possibilities frontier is bowed outward, then “?” could be
a.
180.
b.
200.
c.
220
d.
240.
67. Refer to Table 3-17. If the production possibilities frontier is a straight line, then “?” must be
a.
180.
b.
200.
c.
220.
d.
240.
Table 3-18
The following table contains some production possibilities for an economy for a given month.
Apples
Oranges
120
450
180
?
240
150
68. Refer to Table 3-18. If the production possibilities frontier is bowed outward, then “?” could be
a.
150.
b.
225.
c.
300.
d.
375.
69. Refer to Table 3-18. If the production possibilities frontier is a straight line, then “?” must be
a.
150.
b.
225.
c.
300.
d.
375.
Table 3-19 Summary of the Gains from Trade
Alice
Betty
Lemonade (in pitchers)
Pizza
Lemonade (in pitchers)
Pizza
Without Trade
Production and Consumption
200
100
180
180
With Trade
Production
400
0
0
300
Trade
Gives 193
Gets 110
Gets 190
Gives 110
Consumption
a
b
c
d
Gains from Trade
e
f
g
h
70. Refer to Table 3-19. The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can
produce in one week without and with specialization and trade. What are Alice and Betty’s gains from specialization and
trade?
a.
Alice gains 7 pitchers of lemonade and 10 pizzas, while Betty gains 13 pitchers of lemonade and 10 pizzas.
b.
Alice gains 200 pitchers of lemonade and 100 pizzas, while Betty gains 180 pitchers of lemonade and 180
pizzas.
c.
Alice gains 207 pitchers of lemonade and 110 pizzas, while Betty gains 193 pitchers of lemonade and 190
pizzas.
d.
Alice gains 400 pitchers of lemonade and 0 pizzas, while Betty gains 0 pitchers of lemonade and 300 pizzas.
Figure 3-1
Panel (a)
Panel (b)
71. Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches is constant in
a.
Panel (a).
b.
Panel (b).
c.
both Panel (a) and Panel (b).
d.
neither Panel (a) nor Panel (b).
72. Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches depends on how many
chairs and couches are being produced in
a.
Panel (a).
b.
Panel (b).
c.
both Panel (a) and Panel (b).
d.
neither Panel (a) nor Panel (b).
Figure 3-2
Brazil’s Production Possibilities Frontier
73. Refer to Figure 3-2. The fact that the line slopes downward reflects the fact that
a.
for Brazil, it is more costly to produce peanuts than it is to produce cashews.
b.
Brazil will produce more peanuts and fewer cashews as time goes by.
c.
Brazil faces a tradeoff between producing peanuts and producing cashews.
d.
Brazil should specialize in producing cashews.
74. Refer to Figure 3-2. If the production possibilities frontier shown is for 24 hours of production, then how long does it
take Brazil to make one peanut?
a.
1/10 hour
b.
1/3 hour
c.
3 hours
d.
10 hours
75. Refer to Figure 3-2. If the production possibilities frontier shown is for 24 hours of production, then how long does it
take Brazil to make one cashew?
a.
1/10 hour
b.
1/3 hour
c.
3 hours
d.
10 hours
76. Refer to Figure 3-2. If the production possibilities frontier shown is for two months of production, then which of the
following combinations of peanuts and cashews could Brazil produce in two months?
a.
7 peanuts and 35 cashews
b.
5 peanuts and 100 cashews
c.
2 peanuts and 190 cashews
d.
3 peanuts and 150 cashews
77. Refer to Figure 3-2. If the production possibilities frontier shown is for two months of production, then which of the
following combinations of peanuts and cashews could Brazil not produce in two months?
a.
5 peanuts and 88 cashews
b.
4 peanuts and 115 cashews
c.
3 peanuts and 155 cashews
d.
1 peanuts and 200 cashews
Figure 3-3
Arturo’s Production Possibilities Frontier
Dina’s Production Possibilities Frontier
78. Refer to Figure 3-3. If Dina must work 0.25 hour to produce each taco, then her production possibilities frontier is
based on how many hours of work?
a.
40 hours
b.
100 hours
c.
400 hours
d.
1600 hours
79. Refer to Figure 3-3. If the production possibilities frontier shown for Arturo is for 100 hours of production, then how
long does it take Arturo to make one burrito?
a.
1/4 hour
b.
1/3 hour
c.
3 hours
d.
4 hours
80. Refer to Figure 3-3. If Arturo and Dina both spend all of their time producing tacos, then total production is
a.
400 tacos and 0 burritos.
b.
400 tacos and 250 burritos.
c.
800 tacos and 0 burritos.
d.
800 tacos and 500 burritos.
81. Refer to Figure 3-3. If Arturo and Dina each divides his/her time equally between the production of tacos and
burritos, then total production is
a.
200 tacos and 150 burritos.
b.
400 tacos and 250 burritos.
c.
400 tacos and 300 burritos.
d.
800 tacos and 500 burritos.
82. Refer to Figure 3-3. If the production possibilities frontiers shown are each for one day of production, then which of
the following combinations of tacos and burritos could Arturo and Dina together produce in a given day?
a.
400 tacos and 350 burritos
b.
500 tacos and 250 burritos
c.
600 tacos and 150 burritos
d.
700 tacos and 100 burritos
83. Refer to Figure 3-3. If the production possibilities frontiers shown are each for one day of production, then which of
the following combinations of tacos and burritos could Arturo and Dina together not produce in a given day?
a.
200 tacos and 400 burritos
b.
300 tacos and 350 burritos
c.
400 tacos and 300 burritos
d.
600 tacos and 250 burritos
Figure 3-4
Lisa’s Production Possibilities Frontier
Bryce’s Production Possibilities Frontier
84. Refer to Figure 3-4. If Bryce must work 4 months to produce each sweater, then his production possibilities frontier
is based on how many months of work?
a.
4 months
b.
8 months
c.
12 months
d.
16 months
85. Refer to Figure 3-4. If the production possibilities frontier shown for Lisa is for 4 months of work, then how long
does it take Lisa to produce one jacket?
a.
1/4 month
b.
1/2 month
c.
2 months
d.
4 months
86. Refer to Figure 3-4. If Lisa and Bryce both spend all of their time producing jackets, then total production is
a.
2 jackets.
b.
6 jackets.
c.
24 jackets.
d.
26 jackets.
87. Refer to Figure 3-4. If Lisa and Bryce each divides his or her time equally between producing jackets and producing
sweaters, then total production is
a.
2 sweaters and 8 jackets.
b.
3 sweaters and 13 jackets.
c.
5 sweaters and 8 jackets.
d.
6 sweaters and 26 jackets.
88. Refer to Figure 3-4. If the production possibilities frontiers shown are each for one year of working, then which of
the following combinations of jackets and sweaters could Lisa and Bryce together produce in a given year?
a.
1 sweater and 22 jackets
b.
2 sweaters and 20 jackets
c.
4 sweaters and 12 jackets