Exam 2: Economic Models: Trade-Offs and Trade

Use the following to answer questions: \\ -(Table: Coffee and Salmon Production Possibilities) Use Table: Coffee and Salmon Production Possibilities. The table shows the maximum amounts of coffee and salmon that Brazil and Alaska can produce if they just produce one good. The opportunity cost of producing 1 unit of salmon for Alaska is _____ coffee(s).

Roommates Sarah and Zoe are hosting a Halloween party and have to make food for their guests and costumes for themselves. To finish both tasks as quickly as possible, Sarah and Zoe know that each of them should focus on just one task, but they don't know who should do what. Sarah and Zoe should determine which roommate:

Use the following to answer questions: \\ -(Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II. The production of 8 units of consumer goods and 2 units of capital goods per period would result in:

Use the following to answer questions: -(Table: Price, Quantity Demanded, and Quantity Supplied) Use Table: Price, Quantity Demanded, and Quantity Supplied. The data in the figure suggest a nonlinear relation between:

Use the following to answer questions: -(Figure: Slope) Use Figure: Slope. In the graph, the slope of the line between points A and B is:

Use the following to answer questions: \\ -(Figure: Production Possibility Frontier) Use Figure: Production Possibilities Frontier. If the economy is producing 8 cars and 12 computers per period:

Use the following to answer questions: \\ -(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. The opportunity cost of producing the fourth unit of consumer goods is _____ units of capital goods.

A scatter diagram shows:

Jim is being paid $7.25 an hour to work at a restaurant. In the circular flow, this is an example of a:

"The rate of unemployment is 9%." This statement:

Use the following to answer questions: \\ -(Table: Comparative Advantage I) Use Table: Comparative Advantage I. The opportunity cost of producing 1 box of herring for Finland is _____ box(es) of cell phones.

After 2000, the market for mortgage-backed securities grew rapidly because Wall Street financial theorists claimed they had a model that could accurately assess what their price should be.

(Table: Hours Studied and Quiz Score) Use Table: Hours Studied and Quiz Score. The table shows data for students in an economics class. If we were to graph these data and draw a line through the points, we would choose _____ to be the independent variable; the vertical intercept of our line would be _____; and the slope of our line would be _____.

The production possibility frontier illustrates that:

Trade can be beneficial to an economy because:

A two-dimensional production possibility frontier illustrates the _____ facing an economy that _____ only two goods.

Use the following to answer questions: \\ -(Table: Wheat and Aluminum) Use Table: Wheat and Aluminum. The United States and Germany can produce both wheat and aluminum. The table shows, in tonnage, the maximum annual output combinations of wheat and aluminum that can be produced. Which choice represents a possible trade based on specialization and comparative advantage?

Use the following to answer questions: \\ -(Figure: Production Possibility Frontier) Use Figure: Production Possibilities Frontier. Which rate of production per period is NOT efficient?

Use the following to answer questions: \\ -(Figure: Strawberries and Submarines) Use Figure: Strawberries and Submarines. Suppose the economy now operates at point C. Moving to point E would require that the economy:

Use the following to answer questions: \\ -(Figure: Wine and Wheat) Use Figure: Wine and Wheat. The opportunity cost of moving from producing ONLY wheat to producing ONLY wine is _____ tons of wheat.