Exam 2: Economic Models: Trade-Offs and Trade 25

Use the following to answer questions: -(Figure: Wine and Wheat) Look at the figure Wine and Wheat. If this economy is producing at point A, we know the economy is:

Use the following to answer questions: Figure: Seasonally Adjusted Unemployment Rate -(Figure: Seasonally Adjusted Unemployment Rate) Look at the figure Seasonally Adjusted Unemployment Rate. The distance between each labeled point on the horizontal axis is one year. What is the approximate slope of the graph between 1/2001 and 1/2003?

The relation between two variables that move in opposite directions is said to be:

On any given production possibility frontier, we see the minimum quantity of one good that can be produced for any given production of the other.

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

Use the following to answer questions: Figure: Slope -(Figure: Slope) Look at the figure Slope. The slope of the line in the graph can be calculated by:

Use the following to answer questions: Figure: Comparative Advantage Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and this figure shows each nation's production possibility frontier for the two goods. -(Figure: Comparative Advantage) Look at the figure Comparative Advantage. The opportunity cost of producing 1 box of oranges for Westland is _____ box(es) of peaches.

Which of the following is sold in the factor market?

Use the following to answer questions: -(Table: Bongos and Frisbees) Look at the table Bongos and Frisbees. Bill and Mickey make bongos and Frisbees. Who should specialize in the production of bongos?

Technological improvements will:

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

Use the following to answer questions: Figure: Labor Force Participation Rate -(Figure: Labor Force Participation Rate) Look at the figure Labor Force Participation Rate. During 1970-1985, the labor force participation rate was _____ for women and _____ for men.

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

In the factor market, households buy goods and services.

Greta starts using a new baking technique, and she can now do twice as much of everything. In a single day Greta can now make 10 cakes or 8 pies, rather than the 5 cakes and 4 pies she could previously bake. Greta's production possibility frontier has _____, but her opportunity costs of making pies _____.

Consider a point within a production possibility frontier for a simple economy that produces only two goods, X and Y. Why is this point described as feasible but not efficient?

If they bake only cakes, in a single day George can bake 10 cakes and Greta can bake 5 cakes. If they make only pies, in a single day George can bake 10 pies while Greta can bake 4 pies. We know that _____ has an absolute advantage and a comparative advantage in making _____.

Use the following to answer questions: -(Table: Production Possibilities Schedule I) Look at the table Production Possibilities Schedule I. If the economy produces 4 units of consumer goods per period, it also can produce at most _____ units of capital goods per period.

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

Use the following to answer questions: Figure: Tom's Production Possibilities -(Figure: Tom's Production Possibilities) Look at the figure Tom's Production Possibilities. Which point or points represent(s) a feasible combination of coconuts and fish?