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

Table 2-9 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-9 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 2-9.What is Serena's opportunity cost of making a necklace?

Table 2-20 One Wristwatch Rice (per pound) Japan 50 hours 2 hours Thailand 30 hours 1.5 hours Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-20.Does either Japan or Thailand have an absolute advantage and if so,in what product?

For a person to have a comparative advantage in producing a product,she must be able to produce that product at a lower opportunity cost than her competitors.

The production possibilities frontier shows

Consider the following items: a.the novel "The DaVinci Code" by Dan Brown b.the "The Spirited Shipper," an innovative wine shipping box c.a Swiss chef's award-winning recipe d.an original fabric design,for example,the fabric used for "Coach" bags and luggage Which of the items listed is an example of intellectual property?

Tesla Motors manufacturers its cars at a plant in Fremont,California.At this plant,Tesla is able to take advantage of the high level of technical training possessed by its American workers,but it also sacrifices the ability to pay lower wages had it chosen to open its plant in a low-wage country such as Mexico,India,or China.In deciding to open the Fremont plant,Tesla

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.Which country has a comparative advantage in the production of cotton?

Table 2-10 Fred Barney Pogo Sticks 24 28 Unicycles 8 14 Table 2-10 shows the output per month of two people, Fred and Barney.They can either devote their time to making pogo sticks or making unicycles. -Refer to Table 2-10.Which of the following statements is true?

In the circular flow model,households

Figure 2-1 -Refer to Figure 2-1.________ is (are)technically efficient.

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.Does either Estonia or Finland have an absolute advantage and if so,in what product?

Figure 2-15 Figure 2-15 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles. -Refer to Figure 2-15.If the two countries have the same amount of resources and the same technological knowledge,which country has an absolute advantage in the production of popsicles?

Figure 2-19 -Refer to Figure 2-19.Which two arrows in the diagram depict the following transaction: Dorian Gray hires "Wild Oscar," a professional portrait artist,to paint his picture.

Which of the following would shift a nation's production possibilities frontier inward?

In a production possibilities frontier model,a point ________ the frontier is productively inefficient.

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 20 sliders and 60 hot wings would appear

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

Figure 2-14 Figure 2-14 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts. -Refer to Figure 2-14.Which country has a comparative advantage in the production of coconuts?

Table 2-5 Production choices for Nadia's Neckware Choice Quantity of Ascots Produced Quantity of Bowties Produced A 32 0 B 24 6 C 16 12 D 8 18 E 0 24 -Refer to Table 2-5.Assume Nadia's Neckware only produces ascots and bowties.A combination of 8 ascots and 18 bowties would appear

A successful market economy requires well defined property rights and