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

If a nation changes its laws to more actively enforce intellectual property rights,all of the following will most likely take place except

Table 2-4 Table 2-4 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 2-4.What is South Korea's opportunity cost of producing one digital camera?

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

a.Draw a production possibilities frontier for a country that produces two goods,beer and pretzels.Assume that resources are equally suited to both tasks. b.Define opportunity costs. c.Use your production possibilities frontier graph to demonstrate the principle of opportunity costs.

Consider the following items: A.the novel "The DaVinci Code" by Dan Brown B.the "The Spirited Shipper",an innovative wine shipping box C.a Swiss chef's award-winning recipe D.an original fabric design,for example,the fabric used for "Coach" bags and luggage Which of the items listed is an example of intellectual property?

Table 2-4 Table 2-4 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 2-4.China has a comparative advantage in the production of

Suppose there is no unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

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

A production possibilities frontier with a bowed outward shape indicates

For a person to have a comparative advantage in producing a product,she must be able to produce that product at a lower opportunity cost than her competitors.

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 Y to Z

Which of the following is an example of spending on goods and services in the circular flow model?

Table 2-3 Table 2-3 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-3.What is Haley's opportunity cost of making a necklace?

Comparative advantage means the ability to produce a good or service

What is comparative advantage? What is absolute advantage?

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

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 events: A.a reduction in the patent protection period to no more than 2 years B.a war that destroys a substantial portion of a nation's capital stock C.the lack of secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?

All of the following are examples of spending on factors of production in the circular flow model except

It is possible to have a comparative advantage in producing a good or service without having an absolute advantage.

Figure 2-2. -Refer to Figure 2-2.What is the opportunity cost of one pound of meat?