Exam 2: Economic Models: Trade-Offs and Trade

Roommates Sarah and Zoe are hosting a Halloween party and have to make food for their guests and costumes for themselves.To finish both tasks as quickly as possible,Sarah and Zoe know that each of them should focus on just one task,but they don't know who should do what.Sarah and Zoe should determine which roommate:

The production possibility frontier illustrates:

Which of the following is sold in the product market?

Which statement(s)reflect(s)a normative view? I.The United States should increase the minimum wage to $10 per hour. II.There is a federal minimum wage in the United States. III.The federal minimum wage in the United States is less than $10 per hour.

When building a model,economists:

Frances has a linear production possibility frontier when she produces tomatoes and green beans.If she uses all of her resources,she can produce 400 bushels of tomatoes or 800 bushels of green beans.Frances is NOT producing efficiently if she produces _____ bushels of tomatoes and _____ bushels of green beans.

Which statement is a positive economic statement?

Abe starts exercising regularly,and after a few months he can do twice as much of everything.In a single day,Abe can now make 10 hamburgers or 8 milkshakes,rather than the 5 hamburgers and 4 milkshakes he made in the past.We now know that Abe's production possibility frontier has _____,but his opportunity costs of making milkshakes have _____.

Use the following to answer question: -(Figure: Production Possibility Frontier for Tealand)Use Figure: Production Possibility Frontier for Tealand.Tealand can produce at point E only if:

On any given production possibility frontier,we see the minimum quantity of one good that can be produced for any given production of the other.

In the circular-flow diagram,the factor market is where:

Use the following to answer question: -(Table: Production of Good Z and Good X in Urbanville)Use Table: Production of Good Z and Good X in Urbanville.This table shows the production possibility frontier for Urbanville.Suppose Urbanville is producing 5 of Z and 50 of X;this combination is:

Coworkers Yvonne and Rodney are washing dishes and sweeping the floors of the store.They know that to finish both tasks as quickly as possible,each of them should focus on just one task,but they don't know who should do what.Yvonne and Rodney should determine which one:

"Steel tariffs will prevent job losses in the steel industry" is a positive statement.

Use the following to answer question: -(Figure: Guns and Butter)Use Figure: Guns and Butter.This production possibility frontier is:

Use the following to answer question: -(Table: Production Possibilities Schedule I)Use Table: Production Possibilities Schedule I.The opportunity cost of producing the third unit of consumer goods is _____ units of capital goods.

An economy is said to have a comparative advantage in the production of one good if it:

The circular-flow diagram shows the flow of _____,the flow of _____,and the flow of_______.

Use the following to answer question: -(Figure: Wine and Wheat)Use Figure: Wine and Wheat.If this economy is producing 12 tons of wheat and 9,000 bottles of wine,we know the economy: