Exam 3: Exchange and Markets

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

Suppose a car is completely produced and assembled in Germany and is sold to the United States. In this example, the country that imports the car is _______ while the country that exports the car 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. Sharon's opportunity cost of producing 1 fish is:

Recall Application 2, "Gold Farming for World of Warcraft," to answer the following questions: -According to the application, which of the following was not a market that the Shakers dominated in the 19th century?

The decrease in the scarcity of a product usually results in:

Suppose a product suddenly becomes very popular and the firms producing the product begin to realize large profits. In response, entrepreneurs would:

An example of a public good is:

When there is imperfect competition, the role of the government is to:

Suppose that a vehicle is invented such that it emits no pollutants into the atmosphere. To achieve an efficient market outcome, the government must:

Which of the following tend to reduce economic uncertainty?

A product produced in a foreign country and purchased by residents of the home country is:

A rich nation will trade with a poor nation because the:

A market failure occurs when companies defraud the public.

If the banking industry is unable to review a borrower's credit history, then the market will experience a bank failure caused by:

A role of government is to ensure firms bear the full costs of their production.

The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n):

Consider two individuals, Willy and Blythe, who produce carrots and apples. Willy and Blythe's hourly productivity are as follows: Who has the absolute advantage or comparative advantage in the production of apples or carrots?

During World War II before there was trade among camps, items not consumed by the majority of the camp (such as coffee in British camps and beef in Sikh camps) were

_______ occurs when a firm is shifting part of its production to another country.

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