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

An increase in the labor force shifts the production possibilities frontier inwards over time.

Without an increase in the supply of the factors of production, how can a nation achieve economic growth?

Table 2-3 Production Choices for Dina's Diner -Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 100 hot wings would appear

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?

What shape does a production possibilities frontier take if it displays increasing opportunity costs? What shape does a production possibilities frontier take if it displays constant opportunity costs? Which shape is most common in production situations?

The production possibilities frontier shows the ________ combinations of two products that can be produced in a particular time period with available resources.

How do firms and households interact in markets?

Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves.If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses?

Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except

The payment received by suppliers of entrepreneurial skills is called interest.

What is a production possibilities frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?

In a report made to the U.S.Congress in 2001, the National Academy of Sciences cautioned that if fuel economy encourages the production of smaller and lighter cars, "Some additional traffic fatalities would be expected." This statement suggests that

Stricter laws and regulations to protect intellectual property rights

Any output combination outside a production possibilities frontier is associated with unused or underutilized resources.

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

Which of the following statements about an entrepreneur is false?

Adam Smith's behavioral assumption about humans was that people

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

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

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