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

Which of the following statements about an entrepreneur is false?

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

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.What is the opportunity cost of producing 1 snow cone in Greenland?

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.What is Lucy's opportunity cost of making a wagon?

For each pound of salami that Hungary produces,it gives up the opportunity to make 10 bottles of beer.Slovakia can produce 1 pound of salami for every 8 bottles of beer it produces.Which of the following is true about the comparative advantage between the two countries?

Figure 2-3 -Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle,and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-3 represent his production possibilities frontier?

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 50 sliders and 50 hot wings would appear

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.What is South Korea's opportunity cost of producing one digital camera?

Figure 2-19 -Refer to Figure 2-19.Which two arrows in the diagram depict the following transaction: LaDonna sells 20 pairs of sunglasses at the Oakley store.

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 40 dozen orchids,how many roses can it produce to maximize production?

On a diagram of a production possibility frontier,economic growth is represented by the slope of the production possibility frontier.

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.What is Fred's opportunity cost of making a unicycle?

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 50 dozen roses,how many orchids can it produce to maximize production?

The opportunity cost of taking an on-line history class is

What causes a production possibilities frontier to shift inward?

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 Finland's opportunity cost of producing one cell phone?

As job opportunities for women and the wages those jobs pay have increased,the opportunity cost of doing housework has ________,so many families have chosen to hire specialists in households chores,such as cleaning services and lawn care services,because the cost of these specialists is ________ than the cost of the wife (or husband)performing those chores.

The production possibilities frontier model shows that

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.Billie faces ________ opportunity costs in the production of pillows and blankets.

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.What is Minnie's opportunity cost of making an umbrella?