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

Table 2-18 Minnie Mickey Hats 40 50 Umbrellas 10 5 Table 2-18 shows the output per week of two people, Minnie and Mickey. They can either devote their time to making hats or making umbrellas. -Refer to Table 2-18.Which of the following statements is true?

On a diagram of a production possibilities frontier,economic growth is represented by the slope of the production possibilities frontier.

Figure 2-8 Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2-8.If Vidalia chooses to produce 40 dozen orchids,how many roses can it produce to maximize production?

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

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.an increase in the patent protection period to 75 years B.a hurricane that destroys a substantial portion of a nation's capital stock C.the implementation of a secure and enforceable property rights system Which of the events listed above could cause a movement from W to Z?

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

Figure 2-18 -Refer to Figure 2-18.Which two arrows in the diagram depict the following transaction: Stanley purchases the novel,"Night of Sorrows" for his summer reading pleasure.

Table 2-16 One Cell Phone Lumber (per board foot) Estonia 40 hours 8 hours Finland 16 hours 4 hours Table 2-16 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 2-16.If the two countries specialize and trade,who should export lumber?

In a simple circular flow diagram,who supplies factors of production in markets and who buys these factors of production? Who supplies goods and services in markets and who buys these goods and services?

Comparative advantage means

An inward shift of the production possibilities frontier represents

In the circular flow model,households

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

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

Table 2-20 One Wristwatch Rice (per pound) Tapan 50 hours 2 hours Thailand 30 hours 1.5 hours Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-20.Does either Japan or Thailand have an absolute advantage and if so,in what product?

Figure 2-14 Figure 2-14 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles. -Refer to Figure 2-14.What is the opportunity cost of producing 1 popsicle in Greenland?

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

The attainable production points on a production possibilities frontier are

Figure 2-18 -Refer to Figure 2-18.Which two arrows in the diagram depict the following transaction: Lizzie Haxem hires "The Paint Pros," a professional painting company,to paint her home.

The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products.