Exam 2: Some Tools of the Economist

Beginning in the early 1990s, private landowners in Zimbabwe have started fencing in large areas of land that contain black rhinos, which were on the verge of extinction. These private owners charge fees for a stay at the lodges on the property (eco-tourism) and also sell hunting safaris and photo safaris. As a result,

Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, then it would be reasonable to conclude that

Use the table below to choose the correct answer. The table outlines the production possibilities of Robinson Crusoe and Joe Friday. If Crusoe and Friday want to maximize their consumption possibilities,

Figure 2-9 -Refer to Figure 2-9. If the economy moves from point A to point D, the opportunity cost is

Figure 2-10 -Refer to Figure 2-10. A movement from point C to point D could be caused by

Ashley is an attorney and also an excellent typist. She can type 120 words per minute, but she charges attorney fees at $100 per hour. Benjamin would like some typing work but can only type 60 words per minute. According to the law of comparative advantage, Ashley should hire Benjamin to do her typing if and only if his wage rate is less than

Which of the following most accurately states the economic significance of exchange?

In economics, transaction costs refer to the

Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that

A department store buys a wool coat for $120 and sets its retail price at $300. The coat costs $85 to produce. When the coat doesn't sell, the store marks the price down to $200, then $100, and finally $70. At $70, Amy buys the coat. What was the coat's true value? Why?

If a motorist is stranded in front of a pay phone and has only dollar bills, and he ends up buying a quarter from a passerby for $1,

Which of the following is true of exchange?

If Xavier can produce sandwiches at a lower opportunity cost than Kimani, then

Mateo values his camper at $4,000, and Nicole values it at $9,000. If Nicole buys it from Mateo for $7,000, which of the following is true?

Jayden can produce 10 pens or 20 pencils in one hour while Alexander can produce 15 pens or 5 pencils in one hour. Which of the following statements is correct?

Which of the following statements about exchange is true?

If an economy uses its resources inefficiently, this situation would be illustrated on a production possibilities diagram as

When collective decision making is utilized to resolve economic questions regarding the allocation of resources,

Which of the following is a private owner prohibited from doing?

The primary benefit that results when a nation employs its resources in accordance with the principle of comparative advantage is