Exam 2: Economic Models: Trade-Offs and Trade

Use the following to answer question: -(Figure: Sugar and Freight Trains)Use Figure: Sugar and Freight Trains.Suppose the economy is operating at point B.The opportunity cost of producing the third freight train would be _____ tons of sugar.

Use the following to answer question: -(Figure: Omar's Production Possibilities)Use Figure: Omar's Production Possibilities.The opportunity cost for Tom to move from point C on the curve to point A is:

A high-school graduate who gets a college degree is adding to the economy's stock of:

In one hour,the United States can produce 25 tons of steel or 250 automobiles.In one hour,Japan can produce 30 tons of steel or 275 automobiles.This information implies that:

Use the following to answer question: -(Table: Wheat and Aluminum)Use Table: Wheat and Aluminum.The United States and Germany can produce both wheat and aluminum.The table shows,in tonnage,the maximum annual output combinations of wheat and aluminum that can be produced.Which choice represents a possible trade based on specialization and comparative advantage?

Use the following to answer question: -(Figure: Comparative Advantage)Use Figure: Comparative Advantage.Westland has a comparative advantage in producing:

If farmer Sam MacDonald can produce 200 pounds of cabbages and no potatoes or no cabbages and 100 pounds of potatoes and if he faces a linear production possibility frontier,the opportunity cost of producing an additional pound of cabbage is _____ pound(s)of potatoes.

Use the following to answer question: -(Figure: Bicycles and Radishes II)Use Figure: Bicycles and Radishes II.The country depicted in this figure is operating at point M.It could achieve production at point I only if it:

The financial crisis of 2008 showed that:

In the circular-flow diagram,a household is a(n):

Which statement is positive?

All points inside the production possibility frontier represent:

If the opportunity cost of manufacturing machinery is higher in the United States than in Britain and the opportunity cost of manufacturing sweaters is lower in the United States than in Britain,then the United States will:

Use the following to answer question: -(Table: Comparative Advantage I)Use Table: Comparative Advantage I.The opportunity cost of producing 1 box of cell phones for Sweden is _____ box(es)of herring.

Consider a production possibility frontier for Italy.If in 2016 Italy's resources are not being fully utilized,Italy will be somewhere _____ of its production possibility frontier.

Use the following to answer question: -(Figure: Production Possibilities and Circular-Flow Diagram)Use Figure: Production Possibilities and Circular-Flow Diagram.Assume the two figures represent the same economy.Suppose that in the circular-flow diagram capital that used to flow to firms producing coconuts now flows to firms producing fish.This adjustment in the economy would be BEST represented in the production possibilities figure by a move from point A toward:

The financial meltdown in 2008-2009 was partially the result of a faulty economic model that misestimated the value of mortgage-backed securities.

Nations can gain from trade with other nations,even if they are less productive in all industries than the nations with which they trade.

Use the following to answer question: -(Figure: Omar's Production Possibilities)Use Figure: Omar's Production Possibilities.Which point or points represent(s)a combination of coconuts and fish that is efficient in production?

The economy with the LOWEST opportunity cost of producing a particular good is said to have a(n):