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

Figure 2.14 Figure 2.14 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods, pineapples and coconuts. Alt text for Figure 2.14: In figure 2.14, 2 graphs show the production possibilities frontiers for Costa Rica and Guatemala. Long description for Figure 2.14: The graph on the left represents Costa Rica.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 100 on the y-axis to point 150 on the x-axis.The graph on the right represents Guatemala.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 90 on the y-axis to point 180 on the x-axis. -Refer to Figure 2.14.What is the opportunity cost of producing 1 tonne of pineapples in Costa Rica?

Suppose your expenses for this term are as follows: tuition: $5,000, room and board: $3,000, books and other educational supplies: $500.Further, during the term, you can only work part-time and earn $12,000 instead of your full-time salary of $20,000.What is the opportunity cost of going to university this term, assuming that your room and board expenses would be the same even if you did not go to university?

Table 2.3 Production Choices for Dina's Diner -Refer to Table 2.3.Dina faces ________ opportunity costs in the production of sliders and hot wings.

If a microbrewery wants to purchase a new bottling machine, it does so in the

Figure 2.14 Figure 2.14 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods, pineapples and coconuts. Alt text for Figure 2.14: In figure 2.14, 2 graphs show the production possibilities frontiers for Costa Rica and Guatemala. Long description for Figure 2.14: The graph on the left represents Costa Rica.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 100 on the y-axis to point 150 on the x-axis.The graph on the right represents Guatemala.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 90 on the y-axis to point 180 on the x-axis. -Refer to Figure 2.14.What is the opportunity cost of producing 1 tonne of coconuts in Costa Rica?

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.Does either Estonia or Finland have an absolute advantage and if so, in what product?

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.What is South Korea's opportunity cost of producing one pound of wheat?

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 cubic metre of lumber?

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.China has a comparative advantage in the production of

If society decides it wants more of one good and all resources are fully utilized, then

Figure 2.14 Figure 2.14 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods, pineapples and coconuts. Alt text for Figure 2.14: In figure 2.14, 2 graphs show the production possibilities frontiers for Costa Rica and Guatemala. Long description for Figure 2.14: The graph on the left represents Costa Rica.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 100 on the y-axis to point 150 on the x-axis.The graph on the right represents Guatemala.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 90 on the y-axis to point 180 on the x-axis. -Refer to Figure 2.14.Which country has a comparative advantage in the production of pineapples?

In economies with no effective government

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

Any output combination inside a production possibility frontier is associated with unused or underutilized resources.

As provincial governments across Canada face growing budget deficits some analysts caution that rising health care spending could lead to reduced funding for universities and colleges.This statement suggests that

In the circular flow model, households

The circular flow shows us that

Figure 2.14 Figure 2.14 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods, pineapples and coconuts. Alt text for Figure 2.14: In figure 2.14, 2 graphs show the production possibilities frontiers for Costa Rica and Guatemala. Long description for Figure 2.14: The graph on the left represents Costa Rica.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 100 on the y-axis to point 150 on the x-axis.The graph on the right represents Guatemala.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 90 on the y-axis to point 180 on the x-axis. -Refer to Figure 2.14.Which country has a comparative advantage in the production of coconuts?

________ opportunity cost implies that as more resources are applied to producing one good, that production increases by smaller and smaller amounts.

Figure 2.12 Tesla motors currently has three different models available in Canada; the Model S and the Model 3 (both coupes)and the Model X (an SUV).Figure 2.12 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions. Alt text for Figure 2.12: In figure 2.12, 3 graphs, A, B and C show changes to Tesla motors' production possibilities frontier. Long description for Figure 2.12: Graph A: The x-axis is labelled, S U Vs, and the y-axis is labelled, coupes.2 convex curves begin from the same point near the top of the y-axis.The curves diverge.The first curve ends a little more than half-way along the x-axis.The point E is plotted a little more than half-way along the curve.The second curve ends further along the x-axis, near the end of the axis.The point F is plotted a little more than half-way along the curve.Graph B: The x-axis is labelled, S U Vs, and the y-axis is labelled, coupes.2 convex curves are shown.The first curve begins approximately 3 fifths of the way up the y-axis and finishes a little more than half way along the x-axis.Point G is plotted a little more than half-way along the curve.The second curve begins near the end of the y-axis, and ends close to the end of the x-axis.Point J is plotted is little more than 1 third of the way along the curve, and point H is plotted 3 quarters of the way along the curve. -Refer to Figure 2.12.Suppose worker productivity increases so that the total number of vehicles produced increases as the company adds more machinery and workers and changes the layout of the factory.This is best represented by the