- Carlos can produce the following combinations of X and Y: 20X and 10Y, 15X and 15Y, and 10X and 20Y. What is the opportunity cost of one unit of X for Carlo?
- Michael can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. Vernon can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. Who has the comparative advantage in X? Who has the comparative advantage in Y?
- An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and 0X and 50Y. Prove mathematically that the production possibilities frontier is a straight line.
- If an economy can produce a maximum of 10 units of good X and the opportunity cost of 1X is always 2Y, then what is the maximum units of good Y the economy can produce?
- Jose has one evening in which to prepare for two exams and can employ one of two possible strategies:

A

94

79

B

77

90

The opportunity cost of receiving a 94 on the economics exam is losing __________ points on the statistics exam.

- In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an eight-hour day, John can produce either 8 loaves of bread or 8 pounds of butter. What is the opportunity cost of producing 1 pound of butter?
- Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25), read a good novel (you value this at $13), or go in to work (you could earn $20 during the economics class). What is the opportunity cost of going to your economics class?
- The US can produce the following combinations of X and Y: 90X and 0Y, 60X and 30Y, 30X and 60Y and 0X and 90Y. Ireland can produce the following combinations of X and Y: 30X and 0Y, 20X and 20Y, 10X and 40Y, and 0X and 60Y. What is the opportunity cost of X for the US? What is the opportunity cost of Y for Ireland? Who has the comparative advantage in X? Who has the comparative advantage in Y? Test each of the following for whether or not it is a good trade: 1 unit of Y for 1 unit of X, 1 unit of Y for 0.75 units of X, 1 unit of Y for .25 units of X, and 1 unit of Y for 1.5 units of X.
- Germany produces the following combinations of beer (B) and chocolate(C): 100B and 0C, 60B and 20 C, 20B and 40C, and 0B and 50C. Switzerland can produce the following combination of beer and chocolate: 75B and 0C, 45B and 60C, 15B and 120C and 0B and 150C. Which country has the comparative advantage in Chocolate?
- Short Answer: Who is your favorite entrepreneur? What characteristics made them successful?