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

Table 2-1 Production Choices for Dina's Diner -Refer to Table 2-1.Assume Dina's Diner only produces sliders and hot wings.A combination of 40 sliders and 25 hot wings would appear

A successful market economy requires well defined property rights and

Table 2-6 Table 2-6 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 2-6.What is James's opportunity cost of making a tricycle?

Figure 2-3 -Refer to Figure 2-3.Carlos Vanya grows tomatoes and strawberries on his land.A portion of his land is more suitable for growing tomatoes and the other portion is better suited for strawberry cultivation.Which of the graphs in Figure 2-3 represent his production possibilities frontier?

If you can produce more of something than others with the same resources,you have

Table 2-1 Production Choices for Dina's Diner -Refer to Table 2-1.Dina faces ________ opportunity costs in the production of sliders and hot wings.

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

A guild is

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

Which of the following statements is true about a simple circular flow model?

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 events: a.an increase in the unemployment rate B.a decrease in a nation's money supply C.a war that kills a significant portion of a nation's population Which of the events listed above could cause a movement from Z to X?

If Blake can pick more cherries in one hour than Cody,then Blake has a comparative advantage in cherry picking.

The unattainable points in a production possibilities frontier are

A welding machine is an example of a factor of production if it is being used to produce automobiles.

Is it possible for a firm to have a comparative advantage in producing something without having an absolute advantage? Why or why not?

Table 2-9 Table 2-9 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-9.If the two countries specialize and trade,who should export wristwatches?

Table 2-9 Table 2-9 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-9.What is Japan's opportunity cost of producing one wristwatch?

Table 2-5 Table 2-5 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 2-5.What is Finland's opportunity cost of producing one cell phone?

Table 2-7 Table 2-7 shows the output per week of two people,Minnie and Mickey.They can either devote their time to making hats or making umbrellas. -Refer to Table 2-7.What is Minnie's opportunity cost of making a hat?

Table 2-4 Table 2-4 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 2-4.What is George's opportunity cost of cultivating a garden?