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

If the production possibilities frontier is ________, then opportunity costs are constant as more of one good is produced.

When Feeding America changed its food allocation system to one that resembled a market, each food program was given a number of "shares" that they could use in bidding against other food programs for the types of food that best met the needs of the people using their programs.Using these "shares" helped answer which of the following fundamental economic questions?

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 movements: A.from point V to point W B.from point W to point Y C.from point Y to point Z Which of the movements listed above represents advancements in technology with respect to only plastic production?

Figure 2-14 -Refer to Figure 2-14.Identify the two arrows in the diagram that depict the following transaction: Barney earns $250 for selling scissors and razors to Floyd's Barber Shop.

To increase gas mileage, automobile manufacturers make cars small and light.Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage.These facts suggest that a negative relationship exists between safety and gas mileage.

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

Suppose your expenses for this term are as follows: tuition: $10,000, room and board: $6,000, books and other educational supplies: $1,000.Further, during the term, you can only work part-time and earn $8,000 instead of your full-time salary of $20,000.What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

Figure 2-3 -Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.His land is equally suitable for raising either animal.Which of the graphs in Figure 2-3 represent his production possibilities frontier?

Consider a country that produces only two goods: kayaks and coconuts.Suppose it is possible for this country to increase its production of kayaks without producing fewer coconuts.In this case, its current output combination is efficient.

Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables. -Refer to Figure 2-2.If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it produce to maximize production?

Table 2-11 Table 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2-11.Does either Ireland or Scotland have an absolute advantage and if so, in what product?

The Great Depression of the 1930s, with a large number of workers and factories unemployed, would be represented in a production possibilities frontier by

When you purchase a new pair of jeans you do so in the

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

In a free market there are significant restrictions on how a good or service can be produced or sold.

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

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.A movement from ________ could occur because of an influx of immigrant labor.

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

Consider a country that produces only two goods: parrots and iguanas.Suppose it is impossible for this country to increase its production of parrots without producing fewer iguanas.In this case, its current output combination is efficient.

Article Summary Two U.S. Senators have introduced a bipartisan bill to strengthen patent protection in the United States. The STRONGER Patents Act, designed to improve the patent system, includes provisions which would permit injunctions to protect patent owners against infringement both during and after court cases and guarantee fairness in administrative proceedings by limiting repetitive and harassing challenges against inventors. Changes over the last decade have lessened some U.S. patent rights, while countries such as China and Germany have moved to strengthen their own patent protections. In 2016, the United States fell to 10th place in the U.S. Chamber of Commerce's international ranking of patent system strength. Source: Brian Pomper, "Senators Coons and Cotton Introduce STRONGER Patents Act of 2017," ipwatchdog.com, June 21, 2017. -Refer to the Article Summary.If the STRONGER patents Act of 2017 becomes law, all of the following would most likely occur except