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

If additional units of a good could be produced at an increasing opportunity cost,the production possibilities frontier would be linear.

Figure 2-15 -Refer to Figure 2-15.In the circular flow diagram,market K represents

A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced.

The Great Depression of the 1930s,with a large number of workers and factories unemployed,would be represented in a production possibilities frontier by

Any output combination inside a production possibilities frontier is associated with unused or underutilized resources.

In the circular flow model,households demand resources such as labor services in the product market.

If opportunity costs are constant,the production possibilities frontier would be graphed as

Table 2-30 Wristwatch Rice (bushels) Tapan 200 hours 10 hours Thailand 180 hours 6 hours -Suppose that in Belgium,the opportunity cost of producing a trombone is 8 clarinets.In Denmark,the opportunity cost of producing a trombone is 6 clarinets. a.What is the opportunity cost of producing a clarinet for Belgium? b.What is the opportunity cost of producing a clarinet for Denmark? c.Which country has a comparative advantage in the production of clarinets? d.Which country has a comparative advantage in the production of trombones?

If a nation changes its laws to more actively enforce intellectual property rights,all of the following will most likely take place except

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

Table 2-5 Production choices for Nadia's Neckware Choice Quantity of Ascots Produced Quantity of Bowties Produced A 32 0 B 24 6 C 16 12 D 8 18 E 0 24 -Refer to Table 2-5.Assume Nadia's Neckware only produces ascots and bowties.A combination of 16 ascots and 6 bowties would appear

In a two-good,two country world,if one country has an absolute advantage in the production of both goods,it can still benefit by trading with the other country.

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.What is Minnie's opportunity cost of making an umbrella?

Suppose there is some unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

Table 2-9 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-9 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-9.Which of the following statements is true?

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

For each watch that Switzerland produces,it gives up the opportunity to make 50 pounds of chocolate.Germany can produce 1 watch for every 100 pounds of chocolate it produces.Which of the following is true about the comparative advantage between the two countries?

Figure 2-16 -Refer to Figure 2-16.One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A.What is market C and who are economic agents A?

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.Which of the following statements is true?

Suppose there is no unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?