Exam 2: Economic Models: Trade-Offs and Trade

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 Sweden is _____ box(es) of cell phones.

A firm is an organization that produces goods and/or services.

Use the following to answer questions: \\ -(Figure: Production Possibility Frontier for Tealand) Use Figure: Production Possibility Frontier for Tealand. Tealand is producing at point C on its production possibility frontier. What is the opportunity cost of increasing the production of tea from 20 million cups to 30 million cups?

The _____ illustrates the trade-offs facing an economy that produces only two goods.

Which statement is positive?

The simplest circular-flow model shows the interaction between households and firms. In this model:

Use the following to answer questions: \\ -(Table: Trade-off of Study Time and Leisure Time) Use Table: Trade-off of Study Time and Leisure Time. A student sleeps 8 hours per day and divides the remaining time between study time and leisure time. The table shows the combinations of study and leisure time that can be produced in the 16 waking hours of each day. If a student decides to consume one additional hour of leisure time, how many hours of study time must she give up?

Use the following to answer questions: \\ -(Table: Comparative Advantage I) Use Table: Comparative Advantage I. Finland has a comparative advantage in producing:

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 at point D is _____ tons of wheat.

An economy is said to have a comparative advantage if it:

Use the following to answer questions: \\ -(Figure: Wine and Wheat) Use Figure: Wine and Wheat. If this economy is producing 12 tons of wheat and 9,000 bottles of wine, we know the economy:

Use the following to answer questions: \\ -(Figure: Production Possibilities and Circular-Flow Diagram) Use Figure: Production Possibilities and Circular-Flow Diagram. Assume the two figures represent the same economy. Suppose that in the circular-flow diagram capital that used to flow to firms producing coconuts now flows to firms producing fish. This adjustment in the economy would be BEST represented in the production possibilities figure by a move from point A toward:

Use the following to answer questions: \\ -(Figure: Unemployment Rate over Time) Use Figure: Unemployment Rate over Time. In the time-series graph, as we move from 1993 to 1995, we see that the unemployment rate has _____ from approximately _____% to approximately _____%.

Mark and Julie are going to sell brownies and cookies for their third annual fundraiser bake sale. In one day, Mark can make 40 brownies or 20 cookies, and Julie can make 15 brownies or 15 cookies. What is Mark's opportunity cost to produce one brownie?

Mark and Julie are going to sell brownies and cookies for their third annual fundraiser bake sale. In one day, Mark can make 40 brownies or 20 cookies, and Julie can make 15 brownies or 15 cookies. Based on this information, _____ has the comparative advantage in making brownies and _____ has the comparative advantage in making cookies.

Your boss asks you to graph company profits for the past 10 years. The BEST way to show this information is with a(n):

Which statement is normative?

Suppose Oklahoma decides to produce only two goods, oil and football helmets. If Oklahoma is producing on its production possibility frontier, as oil production increases, the production of football helmets will:

A pie chart is used to depict information about:

When a nation's economy grows: