Exam 2: Economic Models: Trade-Offs and Trade

Which statement is FALSE about the circular-flow diagram?

Use the following to answer questions: -(Table: Price, Quantity Demanded, and Quantity Supplied) Use Table: Price, Quantity Demanded, and Quantity Supplied. The slope of the line representing the relationship between price on the vertical axis and quantity demanded on the horizontal axis is:

An economic model:

Use the following to answer questions: -(Figure: Demand and Supply of Shirts) Use Figure: Demand and Supply of Shirts. In the graph, if the line labeled D shows how many shirts per week will be demanded at various prices, then it is clear that, as the price of shirts falls:

If countries engage in international trade:

Use the following to answer questions: \\ -(Figure: Strawberries and Submarines II) Use Figure: Strawberries and Submarines II. Point F is:

A statement that the minimum wage should be increased is a:

A bar graph:

If farmer Sam MacDonald can produce 200 pounds of cabbages and no potatoes or no cabbages and 100 pounds of potatoes and if he faces a linear production possibility frontier, the opportunity cost of producing an additional pound of potatoes is _____ pound(s) of cabbage.

Use the following to answer questions: -(Figure: Hot Drinks Sold and Temperature) Use Figure: Hot Drinks Sold and Temperature. If we move from point L to point M in the figure, the outside temperature has _____ degrees and the number of hot drinks sold has _____.

Use the following to answer questions: \\ -(Figure: Production Possibility Frontier for Tealand) Use Figure: Production Possibility Frontier for Tealand. If Tealand is producing 10 million scones and 10 million cups of tea (point A) we know that the economy:

If they spend all night writing computer programs, Laurence can write 10 programs, and Carrie Anne can write 5. If they spend all night making sunglasses, Laurence can make 6 pairs, and Carrie Anne can make 4. We know that _____ has a comparative advantage in _____.

The production possibility frontier is bowed out because:

If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of manufacturing sweaters is higher in the United States than in Britain, then the United States will:

Use the following to answer questions: \\ -(Figure: Consumption of Pizza and Tacos) Use Figure: Consumption of Pizza and Tacos. The figure shows the number of tacos and pizza slices Matt can eat in a day. The best estimate of the slope between point A and point B is -4.

Use the following to answer questions: \\ -(Figure: Omar's Production Possibilities) Use Figure: Omar's Production Possibilities. Which point or points represent(s) a combination of coconuts and fish that is efficient in production?

Use the following to answer questions: \\ -(Figure: Production Possibility Frontier) Use Figure: Production Possibilities Frontier. A movement from point C producing 12 cars and 16 computers per period to point B means a _____of _____ cars and a _____ of _____ computers per period.

If Jim buys a lunch at a restaurant, he has bought a factor of production in the factor market.

The circular-flow diagram represents the market for _____ and the market for _____.

Use the following to answer questions: \\ -(Figure: Omar's Production Possibilities) Use Figure: Omar's Production Possibilities. Which point or points represent(s) an infeasible combination of coconuts and fish?