Exam 2: Some Tools of the Economist

Senator Smart, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Smart should argue that trade can be beneficial

The law of comparative advantage implies that a nation, individual, or region should produce those economic goods for which it

In a market economy, what is produced is ultimately determined by

Even countries that depend primarily on market forces to resolve the basic economic questions will usually rely on the collective decision-making process to

If Kim can wash 10 cars or wax 2 cars during a day, and Susan can wash 8 cars or wax 2 cars during a day, then according to the law of comparative advantage,

Use the production possibilities data below to answer the following question(s). Table 2-3 Refer to Table 2-3. The opportunity cost of 1 pound of potatoes for the rancher is

Which of the following is true of a production possibilities curve?

Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, then it would be reasonable to conclude that

Suppose a country attempts to be self-sufficient and doesn't trade with any other countries. From an economic perspective, citizens of this nation can be expected to

A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market prices to allocate goods and resources is often called

When property rights are clearly defined and enforced, private owners will

The law of comparative advantage suggests that

If Kim can either wash 10 cars or wax 2 cars during a day, and Vince can either wash 17 cars or wax 2 cars during a day, then according to the law of comparative advantage,

Economic debates that focus on the distribution of a nation's income are generally associated with which basic economic question?

Richer economies often have more middlemen. Economic thinking indicates that such economies

Production possibilities curve are usually bowed outward. This is because

Which of the following statements about exchange is true?

Opportunity cost is defined

Middlemen, such as grocers, stockbrokers, and realtors

John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?