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

Figure 2-16 -Refer to Figure 2-16.In the circular flow diagram,who are economic agents A and who are economic agents B?

Suppose that in Germany,the opportunity cost of producing a gallon of beer is 5 gallons of wine.In Italy,the opportunity cost of producing a gallon of beer is 3 gallons of wine. A)What is the opportunity cost of producing a gallon of wine for Germany? B)What is the opportunity cost of producing a gallon of wine for Italy? C)Which country has a comparative advantage in the production of beer? D)Which country has a comparative advantage in the production of wine?

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 Horace's opportunity cost of bathing a cat?

If the best lawyer in town is also the best at operating a word processor,then according to the theory of comparative advantage,this person should

The opportunity cost of going to an outdoor music festival is

If a country produces only two goods,it is possible to have an absolute advantage in the production of both goods.

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 2024,Tesla temporarily shuts down part of the Gigafactory for an extensive renovation,and this reduces the amount of production capacity available for both types of batteries.This is best represented by the

The unattainable points in a production possibilities frontier are

Which of the following is a flow in the circular flow model?

Figure 2-18 -Refer to Figure 2-18.Which two arrows in the diagram depict the following transaction: LaDonna sells 20 pairs of sunglasses at the Oakley store.

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 30 years B.an increase of a nation's capital stock C.an improved property rights system Which of the events listed above could cause a movement from V to W?

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 50 dozen roses,how many orchids can it produce to maximize production?

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.The linear production possibilities frontier in the figure indicates that

According to the production possibilities model,if more resources are allocated to the production of physical and human capital,then which of the following is likely to happen?

Figure 2-15 -Refer to Figure 2-15.One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M.What is market K and who are economic agents M?

When Feeding America changed its food allocation system to one that resembled a market,each food program was given a number of "shares" that they could use in bidding against other food programs for the types of food that best met the needs of the people using their programs.Using these "shares" helped answer which of the following fundamental economic questions?

Table 2-3 Production Choices for Dina's Diner Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 160 0 B 120 50 C 80 100 D 40 150 E 0 200 -Refer to Table 2-3.Assume Dina's Diner only produces sliders and hot wings.A combination of 80 sliders and 100 hot wings would appear

What is the difference between product markets and factor markets?

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 X to Y

Suppose your expenses for this term are as follows: tuition: $12,000,room and board: $6,500,books and other educational supplies: $1,500.Further,during the term,you can only work part-time and earn $3,500 instead of your full-time salary of $14,000.What is the opportunity cost of going to college this term,assuming that your room and board expenses would be the same even if you did not go to college?