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

Figure 2.21 Alt text for Figure 2.21: In figure 2.21, a circular flow diagram. Long description for Figure 2.21: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Economic Agents E, an unmarked circle, Economic Agents G, and Market F.The flow of funds goes from Economic Agents E to Market F.The flow of spending on goods and services goes from Market F to Economic Agents G. -Refer to Figure 2.21.One segment of the circular flow diagram in Figure 2.21 shows the flow of funds from Market F to Economic Agents G.The funds represent spending on goods and services.What is Market F and who are Economic Agents G?

Figure 2.4 Figure 2.4 shows various points on three different production possibilities frontiers for a nation. Alt text for Figure 2.4: In figure 2.4, a graph illustrates 3 different production possibilities. Long description for Figure 2.4: The x-axis is labelled, plastic products, and the y-axis is labelled, food products.3 convex curves are shown, with points V, W, X, Y, and Z plotted.The first curve begins just past the half-way point on the y-axis, and ends just past the half-way point on the x-axis.Points W and X are plotted along the curve, with point W approximately 1 third of the way from the start of the curve, and point X more than 2 thirds of the way along the curve.The second curve begins almost 3 quarters of the way up the y-axis and ends just past the termination of the first curve on the x-axis.Point Y is plotted on the second curve, approximately 2 thirds of the way along the curve.The third curve begins at the same point as the second curve, and ends approximately 3 quarters of the way along the x-axis.Point Z is plotted on the third curve, a little less than half-way along the curve.Point V is plotted between the first curve and the origin. -Refer to Figure 2.4.Consider the following events: a.a decrease in the unemployment rate B.general technological advancement C.an increase in consumer wealth Which of the events listed above could cause a movement from V to W ?

Which of the following is an example of spending on goods and services in the circular flow model?

Table 2.12 Table 2.12 shows the number of labour hours required to produce a cell phone and a cubic metre of lumber in Estonia and Finland. -Refer to Table 2.12.What is Finland's opportunity cost of producing one cell phone?

Figure 2.4 Figure 2.4 shows various points on three different production possibilities frontiers for a nation. Alt text for Figure 2.4: In figure 2.4, a graph illustrates 3 different production possibilities. Long description for Figure 2.4: The x-axis is labelled, plastic products, and the y-axis is labelled, food products.3 convex curves are shown, with points V, W, X, Y, and Z plotted.The first curve begins just past the half-way point on the y-axis, and ends just past the half-way point on the x-axis.Points W and X are plotted along the curve, with point W approximately 1 third of the way from the start of the curve, and point X more than 2 thirds of the way along the curve.The second curve begins almost 3 quarters of the way up the y-axis and ends just past the termination of the first curve on the x-axis.Point Y is plotted on the second curve, approximately 2 thirds of the way along the curve.The third curve begins at the same point as the second curve, and ends approximately 3 quarters of the way along the x-axis.Point Z is plotted on the third curve, a little less than half-way along the curve.Point V is plotted between the first curve and the origin. -Refer to Figure 2.4.A movement from Y to Z

Figure 2.15 Alt text for Figure 2.15: In figure 2.15, a circular flow diagram. Long description for Figure 2.15: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Economic Agents M, Market K, and Economic Agents J.The fourth circle is empty unmarked.The diagram shows the flow of wages and salaries from Market K to Economic Agents M.The flow of labor services goes from Market K to Economic Agents J. -Refer to Figure 2.15.One segment of the circular flow diagram in the figure shows the flow of labour services from market K to economic agents J.What is market K and who are economic agents J?

Table 2.5 Table 2.5 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 2.5.What is Serena's opportunity cost of making a bracelet?

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

Figure 2.22 Alt text for Figure 2.22: In figure 2.22, a circular flow diagram. Long description for Figure 2.22: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Households, Factor Markets, Firms, and Product Markets.All these circles are connected by arrows J, G K and M, as follows: Arrow M: Households to Factor Markets Arrow J: Factor Markets to Households Arrow M: Factor Markets to Firms Arrow J: Firms to Factor Markets Arrow K: Firms to Product Markets Arrow G: Product Markets to Firms Arrow K: Product Markets to Households Arrow G: Households to Product Markets -Refer to Figure 2.22.Which two arrows in the diagram depict the following transaction? Carter earns a $400 commission for selling men's designer shoes at Moores.

Table 2.11 Table 2.11 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 2.11.What is Jack's opportunity cost of mowing a lawn?

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

Figure 2.13 Figure 2.13 shows the production possibilities frontiers for Pakistan and Indonesia.Each country produces two goods, cotton and cashews. Alt text for Figure 2.13: In figure 2.13, 2 graphs, show the production possibilities frontiers for Pakistan and Indonesia. Long description for Figure 2.13: The graph on the left represents Pakistan.The x-axis is labelled, cotton in bolts, and the amount 240 marked.The y-axis is labelled, cashews in pounds, and the amount 150 is marked .A slanted line is drawn from point 150 on the y-axis to point 240 on the x-axis.The graph on the right represents Indonesia.The x-axis is labelled, cotton, in bolts, and the amount 320 is marked.The y-axis is labelled, cashews, in pounds, and the amount 120 marked.A slanted line is drawn from point 120 on the y-axis to point 320 on the x-axis. -Refer to Figure 2.13.What is the opportunity cost of producing 1 pound of cashews in Indonesia?

What does the term "increasing marginal opportunity cost" mean? How are increasing marginal opportunity costs represented on a bowed out production possibilities frontier?

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

The payment received by suppliers of entrepreneurial skills is called profit.

Assume few people can be excellent surgeons but many people can be excellent managers. If the best surgeon in town is also the best manager, economic reason suggests they should

Which of the following countries is currently furthest from the free market benchmark?

Table 2.11 Table 2.11 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 2.11.What is Jack's opportunity cost of cultivating a garden?

Figure 2.18 Alt text for Figure 2.18: In figure 2.18, a circular flow diagram. Long description for Figure 2.18: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Households, Factor Markets, Firms, and Product Markets.The flow between the circles is marked by arrows J, G K and M as follows: Arrow M: Households to Factor Markets Arrow J: Factor Markets to Households Arrow M: Factor Markets to Firms Arrow J: Firms to Factor Markets Arrow K: Firms to Product Markets Arrow G: Product Markets to Firms Arrow K: Product Markets to Households Arrow G: Households to Product Markets -Refer to Figure 2.18.Which two arrows in the diagram depict the following transaction: Dorian Gray hires "Wild Oscar," a professional portrait artist, to paint his picture.

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