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

A decrease in the labor force shifts the production possibility frontier inwards over time.

Table 2-15 George Jack Lawns Mowed 10 6 Gardens Cultivated 5 4 Table 2-15 shows the output per day of two gardeners, George and Jack.They can either devote their time to mowing lawns or cultivating gardens. -Refer to Table 2-15.What is Jack's opportunity cost of cultivating a garden?

The term "property rights" refers to

The opportunity cost of going to an outdoor music festival is

Define the term "property rights." Explain why the lack of well defined and enforceable property rights is detrimental to the smooth functioning of a market system.

The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

Table 2-15 George Jack Lawns Mowed 10 6 Gardens Cultivated 5 4 Table 2-15 shows the output per day of two gardeners, George and Jack.They can either devote their time to mowing lawns or cultivating gardens. -Refer to Table 2-15.Which of the following statements is true?

Table 2-13 Tammi Horace Dogs Groomed 20 12 Cats Bathed 10 8 Table 2-13 shows the output per day of two pet groomers, Tammi and Horace.They can either devote their time to grooming dogs or bathing cats. -Refer to Table 2-13.What is Horace's opportunity cost of bathing a cat?

Table 2-11 One Digital Camera Wheat (per pound) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2-11 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-11.If the two countries specialize and trade,who should export wheat?

Figure 2-9 -Refer to Figure 2-9.Carlos Vanya grows tomatoes and strawberries on his land.His land is equally suited for growing either fruit.Which of the graphs in Figure 2-3 represents his production possibilities frontier?

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 16 ascots and 6 bowties would appear

In economics,the term "free market" refers to a market where products are traded but not sold.

All of the following are considered intellectual property except

To compete in the automobile market,Tesla must make many strategic decisions such as whether to introduce a new car model,how to sell and service its cars,and where to advertise.At Tesla's Fremont,California plant,managers must decide on the monthly production quantities of their S and X models.In making this decision,the managers

If society decides it wants more of one good and ________,then it has to give up some of another good and incur some opportunity costs.

The principle of opportunity cost is that

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.an increase in technology with respect to both food and plastic production c.a war that kills a significant portion of a nation's population Which of the events listed above could cause a movement from W to Y?

If property rights are not well enforced,all of the following are likely to occur except

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.Ireland has a comparative advantage in the production of

If Abigail can make more candles in one day than Pierre,then Abigail has an absolute advantage in making candles.