Exam 2: Economic Models: Trade-Offs and Trade

Use the following to answer questions: \\ -(Figure: Strawberries and Submarines II) Use Figure: Strawberries and Submarines II. The downward slope of the production possibility frontier implies that resources:

A linear curve has the same slope between every pair of points.

Use the following to answer questions: \\ -(Figure: Strawberries and Submarines) Use Figure: Strawberries and Submarines. As the economy moves from point A toward point D, it will find that the opportunity cost of each additional submarine:

Mary spends $5 on food for her cat. This is an example of a:

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

Suppose Poland is producing on its production possibilities frontier, and it decides to increase the production of steel and decrease the production of vodka. The bowed-out production possibility frontier suggests that there will be a(n) _____ opportunity cost of producing more steel.

If two variables are positively related, on a graph they will always be represented by a:

Use the following to answer questions: \\ -(Figure: Consumer and Capital Goods) Use Figure: Consumer and Capital Goods. The movement from curve 1 to curve 2 indicates:

Use the following to answer questions: \\ -(Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II. The production of 14 units of consumer goods and 1 unit of capital goods per period would result in:

The basis of the circular-flow diagram is that:

Use the following to answer questions: \\ -(Figure: Labor Force Participation Rate) Use Figure: Labor Force Participation Rate. Using the figure, the labor force participation rate for women was _____ during 1970-1985 and _____ during 1998-2006.

A typical bowed-out production possibility frontier between two goods, guns and butter, shows that the opportunity cost of butter in terms of guns increases as more butter is produced. This implies that the opportunity cost of guns in terms of butter decreases as more guns are produced.

Use the following to answer questions: \\ -(Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II. If an economy is producing at alternative W, the opportunity cost of producing at X is _____ unit(s) of consumer goods per period.

Use the following to answer questions: \\ -(Figure: Guns and Butter) Use Figure: Guns and Butter. If the economy is operating at point B, producing 16 guns and 12 pounds of butter per period, a decision to move to point E and produce 18 pounds of butter:

The process observed when an economy's production possibility frontier shifts outward is:

(Figure: Y = f(X)) Use Figure: Y = f(X). The slope of the relation between x and y is:

Use the following to answer questions: \\ -(Figure: Consumer and Capital Goods) Use Figure: Consumer and Capital Goods. Technological improvements will likely:

An economy is said to have a comparative advantage in the production of a good if it can produce that good:

Use the following to answer questions: \\ -(Figure: Guns and Butter) Use Figure: Guns and Butter. Suppose the economy produced 8 guns and 12 pounds of butter per period. Given that, which statement is TRUE?

Use the following to answer questions: -(Figure: Illustrating Slope) Use Figure: Illustrating Slope. In the graph, line 3 depicts X and Y to be: