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

Table 2-16 One Cell Phone Lumber (per board foot) Estonia 40 hours 8 hours Finland 16 hours 4 hours Table 2-16 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. -Refer to Table 2-16.What is Estonia's opportunity cost of producing one cell phone?

All of the following are examples of spending on factors of production in the circular flow model except

Figure 2-8 Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2-8.What is the opportunity cost of 80 dozen orchids?

The opportunity cost of taking a semester-long economics class is

Without an increase in the supplies of factors of production,how can a nation achieve economic growth?

Figure 2-10 -Refer to Figure 2-10.If the economy is currently producing at point A,what is the opportunity cost of moving to point B?

Table 2-14 One Motorcycle One Guitar Ireland 20 hours 4 hours Scotland 8 hours 2 hours Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2-14.If the two countries specialize and trade,who should export motorcycles?

Any output combination along a production possibility frontier is associated with fully utilized resources.

Figure 2-6 -Refer to Figure 2-6.If the economy is currently producing at point E,what is the opportunity cost of moving to point B?

Crude oil is not an example of a factor of production,but when crude oil is processed into gasoline,it is a factor of production.

Households ________ final goods and services in the ________ market.

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.Which of the following statements is true?

Table 2-2 Production choices for Billie's Bedroom Shop Choice Quantity of Pillows Produced Quantity of Blankets Produced A 36 0 B 27 7 C 18 14 D 9 21 E 0 28 -Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear

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 decrease in the unemployment rate b.general technological advancement c.an increase in consumer wealth Which of the events listed above could cause a movement from V to W?

All of the following are examples of spending on goods and services in the circular flow model except

Figure 2-1 -Refer to Figure 2-1.Point B is

Table 2-17 James Lucy Wagons 16 18 Tricycles 32 24 Table 2-17 shows the output per week of two people, James and Lucy.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-17.Which of the following statements is true?

Because the copyright on the L.Frank Baum book The Wonderful Wizard of Oz expired many years ago,the actual written words from the book are in the public domain,which means

Which of the following is a factor of production?

Table 2-3 Production Choices for Dina's Diner Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 160 0 B 120 50 C 80 100 D 40 150 E 0 200 -Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 100 hot wings would appear