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

If the best surgeon in town is also the best at cleaning swimming pools, then according to the theory of comparative advantage, this person should

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 50 hot wings would appear

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.What is the opportunity cost of 100 dozen roses?

Table 2-10 Table 2-10 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 2-10.What is Tammi's opportunity cost of grooming a dog?

Table 2-3 Production Choices for Dina's Diner -Refer to Table 2-3.Dina faces ________ opportunity costs in the production of sliders and hot wings.

If a country is producing efficiently and is on the production possibilities frontier, the country can produce more of one good without producing less of the other good.

In 18th century Europe, governments gave guilds legal authority to limit production of goods.How did this authority either obstruct or improve the market mechanism?

Which of the following is an example of spending on factors of production in the circular flow model?

Adam Smith's invisible hand refers to

An organization of producers that limits the amount of a good produced is known as a

Figure 2-7 Tesla opened its Gigafactory near Sparks, Nevada to produce lithium-ion batteries for both its automobiles and its Powerwall energy storage products. Figure 2-7 shows changes to its production possibilities frontier at the Gigafactory in response to new developments and different strategic production decisions. -Refer to Figure 2-7.Assume a technological advancement greatly reduces the cost to produce batteries for its automobiles.This is best represented by the

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

Table 2-9 Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-9.Does either Guatemala or Honduras have an absolute advantage and if so, in what product?

Identify whether each of the following transactions will take place in the factor market or in the product market. a.Graciela buys a Tesla Motors Model X. b.Lashan works 60 hours a week at a law firm. c.Tito sells his family's farmland to a housing developer. d.Tesla Motors increases employment at its Fremont, California plant.

If the opportunity cost of producing more of one good remains the same as more of that good is produced, then the production method is inefficient.

In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it must also have a comparative advantage in the production of both goods.

Table 2-2 Production choices for Billie's Bedroom Shop -Refer to Table 2-2.Assume that Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear

Which of the following is a factor of production?

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 economic growth?

All of the following countries come close to the free market benchmark except