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

________ a nation's production possibilities frontier represents economic growth.

How does Adam Smith's idea of the "invisible hand" apply to the various parts,made by many different manufacturers in many different countries,that are used by Apple to produce an iPad?

A welding machine is an example of a factor of production if it is being used to produce automobiles.

Table 2-4 Production Choices for Dina's Diner Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 80 0 B 60 25 C 40 50 D 20 75 E 0 100 -Refer to Table 2-4.Assume Dina's Diner only produces sliders and hot wings.A combination of 40 sliders and 25 hot wings would appear

Table 2-19 Wilrn Betty Statues 12 14 Benches 4 7 Table 2-19 shows the output per month of two people, Wilma and Betty.They can either devote their time to making marble statues or making marble benches. -Refer to Table 2-19.What is Wilma's opportunity cost of making a statue stick?

Entrepreneurs bring together the factors of production to produce goods and services.

Figure 2-16 -Refer to Figure 2-16.In the circular flow diagram,economic agents M represent

"An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by

A production possibilities frontier with a bowed outward shape indicates

Economic growth is represented on a production possibilities frontier model by the production possibility frontier

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.an increase in the patent protection period to 30 years b.an increase of a nation's capital stock c.an improved property rights system Which of the events listed above could cause a movement from V to W?

Figure 2-12 Figure 2-12 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-12.What is the opportunity cost of producing 1 pound of cashews in Indonesia?

According to the production possibility model,if more resources are allocated to the production of physical and human capital,then all of the following are likely to happen except

If a country produces only two goods,it is possible to have a comparative advantage in the production of both those goods.

Horatio can produce either a combination of 15 bird houses and 25 wind chimes or a combination of 30 bird houses and 15 wind chimes.If he now produces 30 bird houses and 15 wind chimes,what is the opportunity cost of producing an additional 10 wind chimes?

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.an increase in the unemployment rate b.a decrease in a nation's money supply c.a war that kills a significant portion of a nation's population Which of the events listed above could cause a movement from Z to X?

Table 2-4 Production Choices for Dina's Diner Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 80 0 B 60 25 C 40 50 D 20 75 E 0 100 -Refer to Table 2-4.Assume Dina's Diner only produces sliders and hot wings.A combination of 40 sliders and 50 hot wings would appear

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

Table 2-12 One canoe One Sailboat Guaternala 10 hours 60 hours Monduras 15 hours 75 hours Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-12.If the two countries specialize and trade,who should export canoes?

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.A movement from X to Y