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

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

Specializing in the production of a good or service in which one has a comparative advantage enables a country to do which of the following?

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

Figure 2-3 -Refer to Figure 2-3.Carlos Vanya grows tomatoes and strawberries on his land.His land is equally suited for growing either fruit.Which of the graphs in Figure 2-3 represents his production possibilities frontier?

Table 2-4 Table 2-4 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. -Refer to Table 2-4.What is Estonia's opportunity cost of producing one cell phone?

Which of the following is a factor of production?

Figure 2-7 Figure 2-7 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts. -Refer to Figure 2-7.What is the opportunity cost of producing 1 ton of coconuts in Guatemala?

If the best lawyer in town is also the best at operating a word processor,then according to economic reasoning,this person should

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 ________ could occur because of an influx of immigrant labor.

The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

Table 2-4 Table 2-4 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. -Refer to Table 2-4.If the two countries specialize and trade,who should export cell phones?

Published in 1776,________ was written by Adam Smith.

An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point inside the frontier.

Figure 2-3 -Refer to Figure 2-3. Carlos Vanya grows tomatoes and strawberries on his land.A portion of his land is more suitable for growing tomatoes and the other portion is better suited for strawberry cultivation.Which of the graphs in Figure 2-3 represent his production possibilities frontier?

The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by

The resource income earned by those who supply labor services is called

All of the following are considered intellectual property except

If you can produce more of something than others with the same resources,you have

What does the term "increasing marginal opportunity cost" mean? How are increasing marginal opportunity costs represented on a bowed out production possibilities frontier?

A worker is hired in a