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fts as much as possible. Given full employment effect of this program on the German production bility curve was most likely to: (a) cause a move-along the curve from one point to another shift the curve in (c) shift the intersection with axis but leave the other unchanged (d) cause the momy to operate within the curve (e) cause lany to operate outside the curve.

The Pol Pot regime in Cambodia killed iximalely 40% of the populadon of that country, impact upon the production possibility curve of ibodia was to: (a) shift the curve outward ishift the curve inward (c) cause Cambodia to outside the curve with regard to some goods, inside it with regard to others, (d) raise the ity cost of all goods on the curve (a) keep pirve stationary but cause a movement from one int to another along it.

The Philippines can produce at most 600 mil-tons of sugar cane or 100 million tons of pineap-I, Hawaii can produce at most 150 million tons of cane or 50 million tons of pineapple. If the pro-ion possibility curves of both are linear (straight les), then which of the following terms of trade id make both better off? (a) the Philippines trade rpurteen tons of sugar cane for two tons of Hawaiian ipple (b) the Philippines trade five tons of sugar 1 for one ton of Hawaiian pineapple (c) the ippines trade one ton of sugar cane for six tons of iawaiian pineapple (d) the Philippines trade sue tons sugar cane for one ton of Hawaiian pineapple (e) le Philippines trade one ton of sugar cane for one m of Hawaiian pineapple.

90. If the Philippines were to specialize in sugar, which of the options in the question above would : the Philippmes worse off? (a) (b) (c) (d) (e).

41. If UCSB can hire 1000 professors and no TAs, for 5000 TAs and no professors with its fixed budget, then the opportunity cost of hiring another is: (a) 10 professors (b) 5 professors (c) 1/2 of a professor (d) 1/5 of a professor (e) 5 TAs.

42. Given a standard two-good production possibility frontier, technical progress applicable to only one of those goods would: (a) cause the PPF to shift outward everywhere (b) cause the PPF to shift outward everywhere except the intercept on the other

goods axis (c) have no effect on the PPF (d) cause the PPF to bow outward more without affecting the intercepts (e) cause the PPF to shift inward.

43. Suppose the production possibilities curve between two goods is linear (a straight line) and that capital equipment useful only in the production of the good on the horizontal axis is introduced. If after the introduction of the equipment, the production possibility curve remains linear, then: (a) the opportunity cost of the horizontal axis good will rise (b) the opponunity cost of the vertical axis good will rise and the opportunity cost of the horizontal axis good will fall (c) both opportunity costs will fall (d) neither opportunity cost will fall (e) neither opportunity cost will rise.

44. Given the production possibilities curve below for a certain beginning econ student,

Grade Point Average 4.0 3.0 2.0 1.0 0.0

Parties Attended per Day 0 1 2 3 4

we would conclude that: (a) the students resources do not appear to be specialized (the student is not endowed as either a party-animal or a nerd) (b) the consumer will want to attend two parties and achieve a 2.0 gpa (c) the production possibilities curve can never shift (d) the opportunity cost of attending a party rises as more parties are attended (e) all of the above.

45. Which of the following statements is false regarding the production possibilit)- curve above? (a) the opportunity cost ofa party is constant (b) the curve is concave (c) the student in question could have both a higher gpa and attend more parties if he were brighter (d) the point gpa = 2.0 and parties = 1 is inside the production possibilities curve (c) this production possibilities curve is linear.

46. Democrats for Defense, a group of former Pentagon officials charges that the Joint Chief of Staff system is "antiquated" and "incapable of providing unified military advice" due to a lack of inter-service cooperation among the chiefs. If this charge is correct, then the impact on the production possibility curve

between civilian and military goods is to cause the country to: (a) over-produce military goods (b) operate inside the production possibility curve (c) under-pro-duce military goods (d) over-produce both military and civilian goods (e) none of the above.

47. At various dmes, the government of Vietnam expelled much of its Chinese populace, the government of Uganda expelled its East Indians, and the government of Nigeria expelled its Ibos, a minority African tribe. If these countries were operadng at full employment, then which of the following is incorrect: (a) their producdon possibilides curves will shift to the southwest (b) their actual producdon will fall (c) their potendal output will fall (d) their opportunity costs for both goods will rise (e) their human resources will be reduced.

48. Monsters Godzilla and Rodan are amuck in Tokyo. With his radioactive fire breath Godzilla can dispatch a car in 5 seconds and a locomoUve in ten. Rodan, on the other hand, takes 4 seconds and 12 scct

onds respecdvely to accomplish these tasks. Normal) the monsters spend a minute apiece destroying and another minute apiece destroying locomotives, they decide to specialize according to comparative advantage, how many addidonal cars and locomotivej respecdvely will they be able to wreck in the same period of dme? (a) 1 and 2 (b) 3 and 2 (c) 3 and 1 (d) 1 and 4 (e) none of the above.

49. Most of the colonies made independent aft( the Second World War developed national plannin agencies charged with developing the same Industrie as the former mother country. Given that the coloniaj system was guided by the principles of comparativ advantage, which of the following statement is falsc (a) world production was reduced (b) the countrie involved hurt themselves (c) these countries mii have operated inside their production possibili curves (d) opportunides for gainful trade wc reduced (e) these countries became more self-sufl cient.

fe-. Exchange


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