Exam 2: Trade-Offs, Comparative Advantage, and the Market System

Table 2.3 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2.3 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2.3.Which of the following statements is true?

A major factor contributing to the slow growth rate of less developed economies is

Figure 2.2 Figure 2.2 above shows the production possibilities frontier for Atikamekw Cree (ca. 1600)with a historical tradition of fishing and farming. Assume they produce two goods: fish and grains -Refer to Figure 2.2.What is the opportunity cost of one kilogram of meat?

The resource income earned by those who supply ________ is called wages.

Figure 2.1 -Refer to Figure 2.1.Point C is

Economic decline (negative growth)is represented on a production possibilities frontier model by the production possibility frontier

What is a production possibilities frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?

Figure 2.4 Figure 2.4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2.4.Consider the following events: a)a reduction in the patent protection period to no more than 2 years b)a war that destroys a substantial portion of a nation's capital stock c)the lack of secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?

Figure 2.5 -Refer to Figure 2.5.If the economy is currently producing at point W, what is the opportunity cost of moving to point X?

Figure 2.6 Toyota finds the emission standards too difficult to meet to bring its diesel-engine offerings to North America. They have instead focused their research on hybrid-engine technology. Assume Toyota chooses to produce both hybrid-engine vehicles and diesel-engine vehicles for its Prius brand. Figure 2.6 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions. -Refer to Figure 2.6.Assume a technological advancement greatly reduces the cost to produce hybrid-engine vehicles.This is best represented by the

Table 2.4 One Digital Camera Wheat (per pound) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2.4 shows the number of labour hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2.4.What is China's opportunity cost of producing one digital camera?

The term "property rights" refers to

The production possibilities frontier model shows that

When you purchase a new pair of jeans you do so in the

Which of the following is a flow in the circular flow model?

If Sanjaya can shuck more oysters in one hour than Tatiana, then Sanjaya has a comparative advantage in shucking oysters.

Any output combination outside a production possibility frontier is associated with unused or underutilized resources.

Table 2.3 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2.3 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -)Refer to Table 2.3.Which of the following statements is true?

The ________ demonstrates the roles played by households and firms in the market system.

If a commercial dairy farm wants to raise funds to purchase feeding troughs, it does so in the