Exam 2: A: Some Tools of the Economist

Kelly is an attorney and also an excellent typist. She can type 120 words per minute, but she charges attorney fees at $100 per hour. Todd would like some typing work but can only type 60 words per minute. According to the law of comparative advantage, Kelly should hire Todd to do her typing if and only if his wage rate is less than

Table 2-3 -Refer to Table 2-3. The opportunity cost of 1 pound of potatoes for the farmer is

As a general rule, technological progress

Because private owners are held responsible for damages their property causes to the property of others, private owners have

High transaction costs will tend to

If Harry Bartolini's Ford dealership sells Rosa Brown a new automobile for $30,000, economic analysis indicates that

Which of the following is an implication of the law of comparative advantage?

Three basic decisions must be made by all economies. What are they?

Suppose you can type a paper in two hours or mow the lawn in four hours. It takes your friend Ann eight hours to type a paper of the same length and five hours to mow the same size of lawn. Which of the following is true?

Sean can build sandboxes twice as fast as Matt. Sean can assemble swing sets three times as fast as Matt. The law of comparative advantage suggests that

The economic principle that states that individuals or nations can gain by specializing in the production of goods that they produce cheaply and exchanging for other desired goods that they could only produce at a higher cost is

The law of comparative advantage applies to exchange between

Figure 2-9 -Refer to Figure 2-9. The opportunity cost of obtaining 10 additional toasters by moving from point B to point A is

If an economy is operating at a point inside the production possibilities curve,

Other things constant, which of the following would you expect to increase the output growth rate of a country?

Figure 2-10 -Refer to Figure 2-10. If the economy moves from point C to point B, then which of the following statements is correct?

Hutch Technology makes computer monitors, which sell for $500 each. What is the opportunity cost of producing ten monitors?

Figure 2-9 -Refer to Figure 2-9. The opportunity cost of obtaining 15 additional toasters by moving from point D to point C is

Economic analysis suggests that gains from specialization and exchange

Table 2-2 -Use the table below to choose the correct answer. The table outlines the production possibilities of Robinson Crusoe and Joe Friday. If Crusoe and Friday want to maximize their consumption possibilities,