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

When you purchase a new surfboard you do so in the

The production possibilities frontier shows

Table 2-13 Tammi Horace Dogs Groomed 20 12 Cats Bathed 10 8 Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats. -Refer to Table 2-13.What is Tammi's opportunity cost of bathing a cat?

________ shows that if all resources are fully and efficiently utilized,more of one good can be produced only by producing less of another good.

The idea underlying Adam Smith's "invisible hand" is that people tend to behave in ways that go unnoticed in society.

If additional units of a good are produced at an increasing opportunity cost,the production possibilities frontier would be bowed outward (concave).

Figure 2-7 Tesla opened its Gigafactory near Sparks, Nevada to produce lithium-ion batteries for both its automobiles and its Powerwall energy storage products. Figure 2-7 shows changes to its production possibilities frontier at the Gigafactory in response to new developments and different strategic production decisions. -Refer to Figure 2-7.Assume that in response to changing consumer demands,Tesla cuts back on the production automobile batteries and increases its production of Powerwall batteries.This strategy is best represented by the

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

A critical function of the government in facilitating the operation of a market economy is

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 ________ is the result of additional government restrictions on the pollution that results from plastic production.

What is a production possibilities frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?

The circular flow model demonstrates

Table 2-19 Wilma Betty Statues 12 14 Benches 4 7 Table 2-19 shows the output per month of two people, Wilma and Betty. They can either devote their time to making marble statues or making marble benches. -Refer to Table 2-19.What is Wilma's opportunity cost of making a statue?

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.What is the opportunity cost of one dozen roses?

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

In a free market there are virtually no restrictions,or at best few restrictions,on how factors of production can be employed.

If a commercial dairy farm wants to raise funds to purchase feeding troughs,it does so in the

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 that displays increasing opportunity costs?

For each pound of salami that Hungary produces,it gives up the opportunity to make 10 bottles of beer.Slovakia gives up the opportunity to produce of 1 pound of salami for every 8 bottles of beer it produces.Which of the following is true about the comparative advantage between the two countries?

In a production possibilities frontier,a point inside the frontier is