Exam 2: Some Tools of the Economist

Suppose an airline ticket from Portland to Orlando costs $760. A bus ticket costs $360. Traveling by plane will take 6 hours, compared with 26 hours by bus. Other things constant, the minimum value of one's time that would induce a rational individual to fly rather than drive would be

Noah values his car at $10,000, and Emily values it at $14,000. If Emily buys it from Noah for $11,000, which of the following is true?

Which of the following will most likely cause an outward shift in the production possibilities curve?

Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s). Table 2-2 Refer to Table 2-2. According to the law of comparative advantage, both Honduras and Nicaragua could gain if

Which of the following about trade is true?

Opportunity cost is defined

Use the production possibilities data below for Austria and Italy to answer the following question(s). Table 2-1 Refer to Table 2-1. According to the law of comparative advantage, both Austria and Italy could gain if

A point on the production possibilities curve represents a combination of goods that is

Because private owners are held responsible for damages their property causes to the property of others, private owners have

With time, which one of the following strategies will most likely result in an outward shift in an economy's production possibilities curve?

The opportunity cost of an action is

A ticket to a concert costs $45. You have a ticket and can resell it for $75. Your opportunity cost of actually attending the concert is

Which of the following is a private owner prohibited from doing?

Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s). Table 2-2 Refer to Table 2-2. Which of the following is correct?

Opportunity costs differ among nations primarily because

Hutch Technology makes computer monitors, which sell for $500 each. What is the opportunity cost of producing ten monitors?

Middlemen, such as grocers, stockbrokers, and realtors

Which of the following most accurately indicates the implications of an economy's production possibilities curve?

Figure 2-6 Which of the following will most likely shift the production possibilities curve for breadfruit and fish outward from AA to BB in Figure 2-6?

Figure 2-10 Refer to Figure 2-10. A movement from point C to point D could be caused by