QUESTION 1 Table 1.1 QUESTION 4 Tractors (hundreds) IN Corn (tons) 40 37 30 20 Table 1.1 shows the production-possibilities frontier for the economy of country X If this economy were to produce 2 (hundred) tractors and only 30 (tons) of corn, O a. it would be operating beyond its production-possibilities frontier. C b. it would be utilizing its resources with maximum efficiency. O c. it would be on its production-possibilities frontier. 10 20 30 40 50 60 70 80 90 100 it could utilize resources more efficiently to produce 7 more (tons of) corn "without sacrificing any According to the graph shown, if the government imposes a price floor of $14.00 in this market, the result would be a QUESTION 2 O a. surplus of 40. X Y O b. surplus of 20. Producer A 20 20 O c shortage of 20. Producer B 15 IS O d. shortage of 40. Please see the table below which depicts daily maximum production capacity of two producers A and B.. QUESTION 5 Which of the following statements in TRUE? QUESTION 5 O a. Producer A has the comparative advantage in producing Y. Year Nominal GDP GDP Deflator b. No producer has the comparative advantage in producing either X or Y. (in billions) (base year 1997) 2000 10,453 121 O c. Producer A has the comparative advantage in producing X. 2001 11,115 124 O d. Producer B has the absolute advantage in producing X and Y. 2002 |11,990 125 QUESTION 3 Use the following table to answer questions 1. Which of the following is an example of an intermediate product? Inflation between 2000 and 2001 was approximately O a. ) 8.2 percent O a. An antique wall clock sold to the highest bidder. O b.3.0 percent O b.A pair of soccer shoes sold by a sporting goods retailer to a soccer player. O c.6.3 percent O c. The flour produced by John Mills company and sold to a bakery shops. O d.2.5 percent O e. 3.8 percent O d. A share of Facebook stock