Exam 2: Economic Models: Trade-Offs and Trade

The economy with the LOWEST opportunity cost of producing a particular good is said to have a(n):

In the graph of a curve, the vertical intercept is the:

In a time-series graph, large changes can be made to appear insignificant by:

Because of trade, a country may:

Use the following to answer questions: \\ -(Figure: Strawberries and Submarines II) Use Figure: Strawberries and Submarines II. Suppose the economy is operating at point A. The first submarine, which is achieved at point B, would have an opportunity cost of _____ million tons of strawberries. ==

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 1997 to 2001, we see that the unemployment rate has _____ from approximately _____% to approximately _____%.

All points on the production possibility frontier are:

In the simplest circular-flow model, households supply _____ and demand _____.

The owner of the Dismal Philosopher, one of five bookstores on College Road, asks you to make a graph showing each College Road bookstore's share of all five stores' book purchases. The BEST way to show this information is with a(n):

Which statement is positive?

To achieve gains from trade, each nation should specialize in the production of a good or service if:

A town hires more police officers and then has an increase in arrests. One can conclude that the larger police force caused more crime.

Use the following to answer questions: \\ -(Figure: Comparative Advantage) Use Figure: Comparative Advantage. The opportunity cost of producing 1 box of peaches for Westland is _____ box(es) of oranges.

The U.S. production possibility frontier would _____ if all computers using Microsoft operating systems contracted a virus that corrupted all information on those computers.

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

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

Use the following to answer questions: -(Table: Coffee and Salmon Production Possibilities II) Use Table: Coffee and Salmon Production Possibilities II. This table shows the maximum amounts of coffee and salmon, both measured in pounds, that Brazil and Alaska can produce if they just produce one good. Alaska has an absolute advantage in producing:

If Brazil gives up three automobiles for each ton of coffee it produces, while Peru gives up seven automobiles for each ton of coffee it produces, then Brazil has a comparative advantage in _____ production and should specialize in _____.

In the circular-flow diagram, households receive money for _____ in the _____ market.

Increases in resources or improvements in technology will tend to cause a society's production possibility frontier to: