Reference no: EM131584247

Module Problem Sets

An Excel template is provided for your Problem Sets. Each problem is presented on a separate worksheet represented by the tabs at the bottom of the Excel worksheet.

You must submit only one Excel file for your Problem Sets. To receive full credit, all work must be shown and the final answer(s) must be highlighted in yellow, unless answers are derived from a graph and/or tables.

Problem Sets

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.

Question #2: When we are efficiently allocating our resources and using the best available technology, we are operating on our ______________.

Question #3: Economic growth can be attained by:

Question #4: Full employment implies an unemployment rate of about ____________ percent.

Question #5: The law of increasing costs states that, as the output of one good expands, ________________________.

Question #6a: If we were at point C, could we quickly produce substantially more houses and more cars?

Question #6b: If we were at point M, could we quickly produce substantially more houses andmore cars?

Question #6c: If we were at point C, could we quickly go to point J?

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

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?

Question #9: The basis for international trade is ____________________.

Question #10: Brazil is better at producing __________________ than at producing__________________.

Argentina is better at producing _________________ than at producing ____________________.

Question #11: If one (1) ton of steel could be traded for one (1) ton of wheat, Brazil would trade its ____________ for Argentina's
_____________________.

Question #12: Bolivia has a comparative advantage in the production of which type of metal?

Question #13: Chile has a comparative advantage in the production of which, type of metal?

Question #14: Bolivia will trade _____________ for __________________.

Question #15: Chile will trade ________________ for ________________.