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

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.Which of the following statements is true?

The ________ demonstrates the roles played by households and firms in the market system.

Figure 2-2. -Refer to Figure 2-2.Suppose Mendonca is currently producing 60 pounds of vegetables per period.How much meat is it also producing,assuming that resources are fully utilized?

Figure 2-3 -Refer to Figure 2-3.Sergio Vignetto raises cattle and llamas on his land.His land is equally suitable for raising either animal.Which of the graphs in Figure 2-3 represent his production possibilities frontier?

The basis for trade is comparative advantage,not absolute advantage.

Households ________ final goods and services in the ________ market.

What is meant by the term "free market"?

The resource income earned by those who supply ________ is called wages.

A major factor contributing to the slow growth rate of less developed economies is

Any output combination outside a production possibility frontier is associated with unused or underutilized resources.

On a diagram of a production possibility frontier,opportunity cost is represented by the production possibility frontier shifting outward.

Table 2-1 Production choices for Tomaso's Trattoria -Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 36 pizzas and 30 calzones would appear

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?

Figure 2-7 Figure 2-7 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-7.If the two countries have the same amount of resources and the same technological knowledge,which country has an absolute advantage in the production of cotton?

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?

Table 2-1 Production choices for Tomaso's Trattoria -Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 30 calzones would appear

The payment received by suppliers of entrepreneurial skills is called interest.

What is the difference between product markets and factor markets?

The U.S.government provides health care to about 30 percent of the population through programs such as Medicare and Medicaid.The Congressional Budget Office estimates that as the U.S.population ages and medical costs continue to rise,federal government spending on Medicare will

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.Does either China or South Korea have an absolute advantage and if so,in what product?