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

Which of the following would shift a nation's production possibilities frontier outward?

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

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.What is the opportunity cost of producing 1 pound of cashews in Pakistan?

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

You have an absolute advantage whenever you

According to the production possibility model,if more resources are allocated to the production of physical and human capital,then which of the following is likely to happen?

The term "property rights" refers to

Consider a country that produces only two goods: kayaks and coconuts.Suppose it is possible for this country to increase its production of kayaks without producing fewer coconuts.In this case,its current output combination is efficient.

Which of the following statements about an entrepreneur is false?

"An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by

Each person goes about her daily business seeking to maximize her own self interests.In doing so,she contributes to the welfare of society at large.This is the idea underlying Adam Smith's "invisible hand."

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 economic growth?

Suppose your expenses for this term are as follows: tuition: $12,000,room and board: $6,500,books and other educational supplies: $1,500.Further,during the term,you can only work part-time and earn $3,500 instead of your full-time salary of $14,000.What is the opportunity cost of going to college this term,assuming that your room and board expenses would be the same even if you did not go to college?

An organization of producers that limits the amount of a good produced is known as a

Crude oil is not an example of a factor of production,but when crude oil is processed into gasoline,it is a factor of production.

When you purchase a new pair of jeans you do so in the

Entrepreneurs bring together the factors of production to produce goods and services.

The opportunity cost of taking a semester-long economics class is

Which of the following is not a factor of production?

The natural resources used in production are made available in the