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

Figure 2-10 -Refer to Figure 2-10. One segment of the circular flow diagram in the Figure shows the flow of funds from market F to economic agents G.The funds represent spending on goods and services.What is market F and who are economic agents G?

If the opportunity cost of producing more of one good increases as more of that good is produced,then the production method is inefficient.

________ a nation's production possibilities frontier represents economic growth.

If the production possibilities frontier is linear,then

If additional units of a good could be produced at a constant opportunity cost,the production possibility frontier would be linear.

All of the following are examples of spending on goods and services in the circular flow model except

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 board foot of lumber?

Why are music,television,and movie companies concerned about their products being posted to Internet websites such as YouTube?

Table 2-3 Table 2-3 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. -Refer to Table 2-3.What is George's opportunity cost of mowing a lawn?

An outward shift of a nation's production possibilities frontier can occur due to

Define the term "property rights." Explain why the lack of well defined and enforceable property rights is detrimental to the smooth functioning of a market system.

The unattainable points in a production possibilities diagram are

Without technological advancement,how can a nation achieve economic growth?

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

Figure 2-11 -Refer to Figure 2-11. Which two arrows in the diagram depict the following transaction: Stanley purchases the novel,"Night of Sorrows" for his summer reading pleasure.

Table 2-1 Production Choices for Dina's Diner -Refer to Table 2-1.Assume Dina's Diner only produces sliders and hot wings.A combination of 60 sliders and 50 hot wings would appear

Which of the following are represented by the same flow in the circular flow model?

________ exists because unlimited wants exceed the limited resources available to fulfill those wants.

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 pineapples in Costa Rica?

Figure 2-1 -Refer to Figure 2-1. ________ is (are)inefficient in that not all resources are being used.