Graph 3-1 These Figures Illustrate the Production Possibilities Frontiers for Robinson Crusoe

question 30

Multiple Choice

Graph 3-1

These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour.
-According to Graph 3-1:

• A)Robinson Crusoe has an absolute advantage in fish, and Friday has an absolute advantage in coconuts
• B)Robinson Crusoe has an absolute advantage in coconuts, and Friday has an absolute advantage in fish
• C)Robinson Crusoe has an absolute advantage in neither goods, and Friday has an absolute advantage in both goods
• D)Robinson Crusoe has an absolute advantage in both goods, and Friday has an absolute advantage in neither goods

Understand how meta-analysis aids in deriving quantitative conclusions from previous research studies.

Understand the distinction between fixed and variable costs.

Recognize the conditions under which a firm should continue to operate or shut down in the short run.

Comprehend the concept of the long run in economic theory.

---

Definitions:

Frequency Distribution

A statistical representation showing the number of occurrences of each distinct value in a set of data.

Median

The middle value of a data set, which separates the higher half from the lower half of the data set.

Mean

The arithmetic average of a set of numbers, calculated by adding them up and dividing by the number of figures.

Mean

The average value in a set of numbers, calculated by dividing the sum of all values by the count of those values.