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

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.Which of the following statements is true?

The production possibilities frontier model shows that

You have an absolute advantage whenever you

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.Which country has a comparative advantage in the production of cotton?

A production possibilities frontier with a bowed-outward shape indicates

Figure 2-7 Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier 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 self-driving vehicles.This is best represented by the

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?

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

Figure 2-5 -Refer to Figure 2-5.If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?

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

Economic decline (negative growth)is represented on a production possibilities frontier model by the production possibility frontier

As women's wages have risen relative to men's wages, the opportunity cost to women of doing housework has ________ than has the opportunity cost to men.

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.If the two countries specialize and trade, who should export digital cameras?

Figure 2-13 -Refer to Figure 2-13.One segment of the circular flow diagram in the figure shows the flow of funds from economic agents E to market F.Who are economic agents E and what is market F?

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

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 2-3 -Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-3 represent his production possibilities frontier that displays increasing opportunity costs?

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

Article Summary On October 5, 2015, 12 nations, including the United States, reached an agreement on the Trans-Pacific Partnership (TPP)treaty, a free-trade agreement that has been negotiated in total secrecy for more than five years.One of the more controversial parts of the agreement deals with intellectual property rights, with details of this provision released to the public by the Website Wikileaks.According to Wikileaks, the intellectual property rights section of the TPP contains regulations that would potentially have "wide-ranging effects on internet services, medicines, publishers, civil liberties, and biological patents." Included in these regulations is the potential to extend patents on pharmaceuticals which could delay the development of less expensive, generic versions of the patented drugs. Source: Doug Bolton, "TPP leaked: Wikileaks releases intellectual property chapter of controversial internet and medicine-regulating trade agreement," independent.co.uk, October 9, 2015. -Refer to the Article Summary above.If the 12 nations that are a part of the TPP do agree to these stricter pharmaceutical patent laws as a way to increase intellectual property rights, all of the following would most likely occur except

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 ________ is the result of negative technological change in plastic production.