Exam 3: Exchange and Markets

Table 3.2 -Consider two individuals, Rose and Sharon, who produce fish and coconuts. Rose and Sharon's hourly productivity are shown in Table 3.2. Sharon's opportunity cost of producing 1 coconut is:

An example of a public good is:

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots. From the table, we can conclude that:

When it comes to pollution, economists believe that the government must:

Table 3.2 -Consider two individuals, Rose and Sharon, who produce fish and coconuts. Rose and Sharon's hourly productivity are shown in Table 3.2. Which of the following is true?

A product produced in the home country and sold in another country is:

Table 3.2 -Consider two individuals, Rose and Sharon, who produce fish and coconuts. Rose and Sharon's hourly productivity are shown in Table 3.2. Rose's opportunity cost of producing 1 fish is:

Recall Application 1, "Candy Cane Makers Move to Mexico for Cheap Sugar," to answer the following questions: -According to the application, the US sugar import restrictions aim to:

A market failure could be caused by:

When a person producing a particular product has a lower opportunity cost than another person, that person is considered to have a _______ over the other.

If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour, and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour, then Mary has a comparative advantage in writing true/false questions.

Recall Application 3, "The Shakers and the Market for Garden Seeds," to answer the following questions: -Based on the application, one can infer that the economic system adopted by each Shaker community more closely resembles that of a:

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots. Based on the table, Blythe's opportunity cost of 1 apple is:

Accounting rules:

Recall Application 1, "Candy Cane Makers Move to Mexico for Cheap Sugar," to answer the following questions: -According to the application, US producers moved their candy cane production overseas due to:

Adam Smith used the metaphor "invisible hand" to explain that:

If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour, and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour, then Mary has a comparative advantage in writing multiple choice questions.

Recall Application 2, "Gold Farming for World of Warcraft," to answer the following questions: -Suppose a US "World of Warcraft" player's opportunity cost is $8.00 an hour and can collect 25 coins per hour playing in the game. If the price of the virtual coins was $0.20 each, the player would find it worth their while to:

A product produced overseas and sold in another country is an export.

For country A, an export is a good produced in: