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

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 Betty's opportunity cost of making a bench?

If the opportunity cost of producing more of one good remains the same as more of that good is produced,then the production method is inefficient.

The slope of a production possibilities frontier measures the ________ of producing one more unit of a good.

Table 2-17 James Lucy Wagons 16 18 Tricycles 32 24 Table 2-17 shows the output per week of two people, James and Lucy. They can either devote their time to making wagons or making tricycles. -Refer to Table 2-17.Which of the following statements is true?

If a brewery wants to raise funds to purchase a new fermenting vat,it does so in the

The opportunity cost of taking an on-line history class is

As job opportunities for women and the wages those jobs pay have increased,the opportunity cost of doing housework has ________,so many families have chosen to hire specialists in households chores,such as cleaning services and lawn care services,because the cost of these specialists is ________ than the cost of the wife (or husband)performing those chores.

Which of the following are represented by the same flow in the circular flow model?

If a vineyard wants to raise funds to purchase a new bottling machine,it does so in the

To compete in the automobile market,Tesla must make many strategic decisions such as whether to introduce a new car model,how to sell and service its cars,and where to advertise.At Tesla's Fremont,California plant,managers must decide on the monthly production quantities of their S and X models.In making this decision,the managers

If a country produces only two goods,then it is not possible to have an absolute advantage in the production of both goods.

Table 2-12 One Canoe One Sailboat Guatemala 10 hours 60 hours Honduras 15 hours 75 hours Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-12.Does either Guatemala or Honduras have an absolute advantage and if so,in what product?

Figure 2-15 -Refer to Figure 2-15.In the circular flow diagram,economic agents M represent

Figure 2-5 -Refer to Figure 2-5.If the economy is currently producing at point X,what is the opportunity cost of moving to point W?

Table 2-31 Cell Phone Lumber (board foot) Estonia 20 hours 5 hours Finland 18 hours 4 hours -Refer to Table 2-31.This table shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. a.Which country has an absolute advantage in the production of cell phones? b.Which country has an absolute advantage in the production of lumber? c.What is Estonia's opportunity cost of producing one cell phone? d.What is Finland's opportunity cost of producing one cell phone? e.What is Estonia's opportunity cost of producing one board foot of lumber? f.What is Finland's opportunity cost of producing one board foot of lumber? g.If each country specializes in the production of the product in which it has a comparative advantage,who should produce cell phones? h.If each country specializes in the production of the product in which it has a comparative advantage,who should produce lumber?

The production possibilities frontier shows the ________ combinations of two products that can be produced in a particular time period with available resources.

Table 2-10 Fred Barney Pogo Sticks 24 28 Unicycles 8 14 Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles. -Refer to Table 2-10.What is Fred's opportunity cost of making a pogo stick?

Table 2-12 One Canoe One Sailboat Guatemala 10 hours 60 hours Honduras 15 hours 75 hours Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-12.What is Honduras's opportunity cost of producing one canoe?

Which of the following are separate flows in the circular flow model?

Table 2-14 One Motorcycle One Guitar Treland 20 hours 4 hours Scotland 8 hours 2 hours Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2-14.What is Ireland's opportunity cost of producing one motorcycle?