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

For a person to have a comparative advantage in producing a product,he must be able to produce that product at a higher opportunity cost than his competitors.

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.If the two countries specialize and trade,who should export lumber?

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.If Vidalia chooses to produce 60 dozen orchids,how many roses can it produce to maximize production?

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.Suppose Vidalia is currently producing 120 dozen roses per period.How many orchids is it also producing,assuming that resources are fully utilized?

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 60 sliders and 50 hot wings would appear

Adam Smith's invisible hand refers to

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

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

Individuals who have never been the best at doing anything

In the desire to have a celebrity's image protected to prevent it from being used in ways he would not approve,a celebrity's estate

When you purchase a new set of spurs you do so in the

Suppose there is some unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

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

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.South Korea has a comparative advantage in the production of

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

In the circular flow model,producers

Table 2-18 Minnie Mickey Hats 40 50 Urmbrellas 10 5 Table 2-18 shows the output per week of two people, Minnie and Mickey.They can either devote their time to making hats or making umbrellas. -Refer to Table 2-18.Which of the following statements is true?

In the circular flow model,households demand resources such as labor services in the product market.