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

In the circular flow model,households

Figure 2-8 Figure 2-8 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods,pineapples and coconuts. -Refer to Figure 2-8.What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?

Figure 2-6 -Refer to Figure 2-6.If the economy is currently producing at point C,what is the opportunity cost of moving to point B?

Increasing marginal opportunity cost implies that

In the desire to have a celebrity's image protected to prevent it from being used in ways he would not approve,a celebrity's estate

An increase in population shifts the production possibilities frontier inwards over time.

Table 2-2 Production choices for Nadia's Neckware -Refer to Table 2-2.Assume Nadia's Neckties only produces ascots and bowties.Nadia faces ________ opportunity costs in the production of ascots and bowties.

If the production possibilities frontier is linear,then

If society decides it wants more of one good and ________,then it has to give up some of another good and incur some opportunity costs.

Individuals who have never been the best at doing anything

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

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

Which of the following is a factor of production?

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 50 hot wings would appear

Table 2-2 Production choices for Nadia's Neckware -Refer to Table 2-2.Assume Nadia's Neckware only produces ascots and bowties.A combination of 24 ascots and 12 bowties would appear

In a free market there are virtually no restrictions,or at best few restrictions,on how a good or service can be produced or sold.

In a two-good,two country world,if one country has a comparative advantage in the production of one good,it can benefit by trading with the other country.

Comparative advantage means

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

Figure 2-8 Figure 2-8 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods,pineapples and coconuts. -Refer to Figure 2-8.What is the opportunity cost of producing 1 ton of pineapples in Costa Rica?