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

Increasing opportunity cost is represented by a ________ production possibilities frontier.

If a country is producing efficiently and is on the production possibilities frontier, the only way to produce more of one good is to produce less of the other.

An outward shift of a nation's production possibilities frontier represents

Economic growth is represented on a production possibilities frontier model by the production possibility frontier

Toyota built an assembly plant in Woodstock, Ontario.At this plant, Toyota is able to take advantage of paying lower transportation costs on cars to be sold in Canada than it would from its Japanese assembly plants, but it also sacrifices the ease of supervising its Japanese workers, who generally have high skills levels and few labour disputes.In deciding to open the Woodstock plant, Toyota

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 George's opportunity cost of cultivating a garden?

Table 2.6 Table 2.6 shows the number of labour hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2.6.Does either China or South Korea have an absolute advantage and if so, in what product?

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 bolt of cotton in Indonesia?

All of the following are critical functions of the government in facilitating the operation of a market economy except

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

Which of the following statements is true?

Which of the following statements about an entrepreneur is true?

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.Which of the following statements is true?

Each person goes about her daily business seeking to maximize her own self interests.In doing so, she contributes to the welfare of society at large.This is the idea underlying Adam Smith's "invisible hand."

How are efficiency and inefficiency represented on a production possibilities frontier?

On a diagram of a production possibility frontier, opportunity cost is represented by the production possibility frontier shifting outward.

What is meant by the term "free market"?

The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

If the production possibilities frontier is linear, then

Which of the following is not an example of spending on goods and services in the circular flow model?