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

Which of the following are separate flows in the circular flow model?

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 160 pounds of vegetables, how much meat can it produce to maximize production?

Stricter laws and regulations to protect intellectual property rights

An example of a factor of production is

Which of the following is a factor of production?

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 80 dozen orchids?

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.What is Honduras's opportunity cost of producing one sailboat?

Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia.Each country produces two goods, cotton and cashews. -Refer to Figure 2-9.What is the opportunity cost of producing 1 bolt of cotton in Pakistan?

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?

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

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.

In the circular flow model, households supply resources such as labor services in the factor market.

The production possibilities frontier model assumes which of the following?

Which of the following statements about an entrepreneur is false?

Table 2-2 Production choices for Billie's Bedroom Shop -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.

Consider the following items: A.the album "Wilder Mind" by Mumford & Sons B.a Dutch horticulturalist's new method for cultivating hybrid tulips C.Rolls Royce's "Spirit of Ecstasy" hood ornament design D.the sale of Tumi luggage at a Macy's department store Which of the items listed is an example of intellectual property?

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

If a country produces only two goods, then it is not possible to have an absolute advantage in the production of both goods.

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.

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.Suppose Vidalia is currently producing 60 dozen orchids per period.How many roses is it also producing, assuming that resources are fully utilized?