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

Suppose there is some unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?

According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then all of the following are likely to happen except

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 movements: a. from point V to point W b. from point W to point Y c. from point Y to point Z Which of the movements listed above represents advancements in technology with respect to only plastic production?

As women's wages have risen relative to men's wages, the opportunity cost to women of doing housework has ________ than has the opportunity cost to men.

If a country is producing efficiently and is on the production possibilities frontier, the country can produce more of one good without producing less of the other good.

For a person to have a comparative advantage in producing a product, he must be able to produce that product at a higher opportunity cost than his competitors.

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

Figure 2-1 -Refer to Figure 2-1. Point B is

Table 2-16 Table 2-16 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. -Refer to Table 2-16. If the two countries specialize and trade, who should export lumber?

Table 2-13 Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats. -Refer to Table 2-13. What is Horace's opportunity cost of bathing a cat?

When you purchase a new set of spurs you do so in the

The concept of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

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 Guatemala?

Carmelita can perform either a combination of 35 manicures and 70 pedicures or a combination of 50 manicures and 45 pedicures. If she now performs 35 manicures and 70 pedicures, what is the opportunity cost of performing an additional 15 manicures?

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

Table 2-5 Production choices for Nadia's Neckware -Refer to Table 2-5. Assume Nadia's Neckware only produces ascots and bowties. A combination of 8 ascots and 18 bowties 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 60 sliders and 50 hot wings would appear

Figure 2-9 -Refer to Figure 2-9. Carlos Vanya grows tomatoes and strawberries on his land. A portion of his land is more suitable for growing tomatoes and the other portion is better suited for strawberry cultivation. Which of the graphs in Figure 2-3 represent his production possibilities frontier?

If a country produces only two goods, then it is not possible to have a comparative advantage in the production of both those goods.

Figure 2-6 -Refer to Figure 2-6. If the economy is currently producing at point C, what is the opportunity cost of moving to point B?