Exam 2: Trade-Offs, Comparative Advantage, and the Market System

Table 2-9 Table 2-9 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-9. What is Haley's opportunity cost of making a bracelet?

Article Summary Two U.S. Senators have introduced a bipartisan bill to strengthen patent protection in the United States. The STRONGER Patents Act, designed to improve the patent system, includes provisions which would permit injunctions to protect patent owners against infringement both during and after court cases and guarantee fairness in administrative proceedings by limiting repetitive and harassing challenges against inventors. Changes over the last decade have lessened some U.S. patent rights, while countries such as China and Germany have moved to strengthen their own patent protections. In 2016, the United States fell to 10th place in the U.S. Chamber of Commerce's international ranking of patent system strength. Source: Brian Pomper, "Senators Coons and Cotton Introduce STRONGER Patents Act of 2017," ipwatchdog.com, June 21, 2017. -Refer to the Article Summary. If the STRONGER patents Act of 2017 does not become law and patent protection in the United States continues to fall further behind patent protection in other countries, which of the following would most likely occur in the United States?

An increase in the labor force shifts the production possibilities frontier inwards over time.

Table 2-4 Production Choices for Dina's Diner -Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 25 hot wings would appear

Table 2-4 Production Choices for Dina's Diner -Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 50 hot wings would appear

If a vineyard wants to raise funds to purchase a new bottling machine, it does so in the

Figure 2-8 Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2-8. If Vidalia chooses to produce 50 dozen roses, how many orchids can it produce to maximize production?

If opportunity costs are ________, the production possibilities frontier would be graphed as a negatively sloped straight line.

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4. Consider the following events: a. an increase in the patent protection period to 30 years b. an increase of a nation's capital stock c. an improved property rights system Which of the events listed above could cause a movement from V to W?

The opportunity cost of going to an outdoor music festival is

Table 2-1 Production choices for Tomaso's Trattoria -Refer to Table 2-1. Assume that Tomaso's Trattoria only produces pizzas and calzones. A combination of 36 pizzas and 30 calzones would appear

Figure 2-8 Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2-8. What is the opportunity cost of one dozen roses?

The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by

Any output combination outside a production possibilities frontier is associated with unused or underutilized resources.

Table 2-14 Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2-14. If the two countries specialize and trade, who should export motorcycles?

Figure 2-11 Figure 2-11 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-11. What is the opportunity cost of producing 1 pound of cashews in Pakistan?

To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage. These facts suggest that a positive relationship exists between safety and gas mileage.

Without an increase in the supply of the factors of production, how can a nation achieve economic growth?

The slope of a production possibilities frontier

Figure 2-15 -Refer to Figure 2-15. In the circular flow diagram, economic agents M represent