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

It is not possible to have an absolute advantage in producing a good or service without having a comparative advantage.

Figure 2-18 -Refer to Figure 2-18.Which two arrows in the diagram depict the following transaction: Barney earns $250 for selling scissors and razors to Floyd's Barber Shop.

In a free market there are virtually no restrictions,or at best few restrictions,on how a good or service can be produced or sold.

Table 2-11 One Digital Camera Wheat (per pound) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2-11 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-11.If the two countries specialize and trade,who should export wheat?

Figure 2-13 Figure 2-13 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts. -Refer to Figure 2-13.What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?

Table 2-4 Production Choices for Dina's Diner Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 80 0 B 60 25 C 40 50 D 20 75 E 0 100 -Refer to Table 2-4.Assume Dina's Diner only produces sliders and hot wings.A combination of 60 sliders and 50 hot wings would appear

Table 2-15 George Jack Lawns Mowed 10 6 Gardens Cultivated 5 4 Table 2-15 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 2-15.What is George's opportunity cost of mowing a lawn?

Table 2-2 Production choices for Billie's Bedroom Shop Choice Quantity of Pillows Produced Quantity of Blankets Produced B 36 0 C 27 7 18 14 E \rho 21 -Refer to Table 2-2.Assume that Billie's Bedroom Shop only produces pillows and blankets.A combination of 27 pillows and 14 blankets would appear

In the circular flow model,producers

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.What is Estonia's opportunity cost of producing one board foot of lumber?

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 movements: A.from point V to point W B.from point W to point Y C.from point Y to point Z Which of the movements listed above represents economic growth?

Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except

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.If the two countries specialize and trade,who should export wristwatches?

Figure 2-12 Figure 2-12 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. -Refer to Figure 2-12.Which country has a comparative advantage in the production of milk?

The production possibilities frontier assumes all of the following except

Which of the following would shift a nation's production possibilities frontier inward?

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

When a celebrity has the desire to have his image protected following his death,this is best described as an example of the protection of

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

Table 2-4 Production Choices for Dina's Diner Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 80 0 B 60 25 C 40 50 D 20 75 E 0 100 -Refer to Table 2-4.Dina faces ________ opportunity costs in the production of sliders and hot wings.