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

Figure 2-13 Figure 2-13 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts. -Refer to Figure 2-13. What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?

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. Which country has a comparative advantage in the production of cashews?

Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because of all of the following except

Suppose there is no unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?

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 bolt of cotton in Pakistan?

It is not possible to have an absolute advantage in producing a good or service without having a comparative advantage.

Table 2-19 Table 2-19 shows the output per month of two people, Wilma and Betty. They can either devote their time to making marble statues or making marble benches. -Refer to Table 2-19. What is Betty's opportunity cost of making a bench?

Figure 2-5 -Refer to Figure 2-5. If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?

Increasing marginal opportunity cost implies that

Which of the following is not a factor of production?

Economic growth is represented on a production possibilities frontier model by the production possibilities frontier

Households

For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces. Which of the following is true about the comparative advantage between the two countries?

Table 2-18 Table 2-18 shows the output per week of two people, Minnie and Mickey. They can either devote their time to making hats or making umbrellas. -Refer to Table 2-18. Which of the following statements is true?

The Great Depression of the 1930s, with a large number of workers and factories unemployed, would be represented in a production possibilities frontier by

If you can produce more of something than others with the same resources, you have

The term "property rights" refers to

Table 2-10 Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles. -Refer to Table 2-10. What is Fred's opportunity cost of making a unicycle?

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. Suppose Vidalia is currently producing 20 dozen orchids per period. How many roses is it also producing, assuming that resources are fully utilized?

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. Which country has a comparative advantage in the production of cotton?