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

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.A movement from ________ is the result of advancements in plastic production technology.

Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland.Each country produces two goods,snow cones and popsicles. -Refer to Figure 2-9.What is the opportunity cost of producing 1 popsicle in Greenland?

If Abigail can make more candles in one day than Pierre,then Abigail has an absolute advantage in making candles.

Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Vidalia,a nation that produces two goods,roses and orchids. -Refer to Figure 2-2.If Vidalia chooses to produce 40 dozen orchids,how many roses can it produce to maximize production?

Which of the following is not a flow in the circular flow model?

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 20 sliders and 60 hot wings would appear

Figure 2-7 Tesla opened its Gigafactory near Sparks,Nevada to produce lithium-ion batteries for both its automobiles and its Powerwall energy storage products.Figure 2-7 shows changes to its production possibilities frontier at the Gigafactory in response to new developments and different strategic production decisions. -Refer to Figure 2-7.Suppose worker productivity increases so that the total number of batteries produced increases as Tesla adds more machinery and workers,and changes the layout of the factory.This is best represented by the

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 Thailand's opportunity cost of producing one wristwatch?

Table 2-8 Table 2-8 shows the output per month of two people,Wilma and Betty.They can either devote their time to making marble statues or making marble benches. -Refer to Table 2-8.Which of the following statements is true?

Figure 2-11 -Refer to Figure 2-11.In the circular flow diagram,who are economic agents A and who are economic agents B?

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.a reduction in the patent protection period to no more than 2 years B.a war that destroys a substantial portion of a nation's capital stock C.the lack of secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?

In economics,the term "free market" refers to a market where no sales tax is imposed on products sold.

If additional units of a good are produced at an increasing opportunity cost,the production possibilities frontier would be bowed outward (concave).

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

If a country is producing efficiently and is on the production possibilities frontier,producing more of one good would result in a movement along the frontier.

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 $4,000 instead of your full-time salary of $10,000.What is the opportunity cost of going to college this term,assuming that your room and board expenses would be the same even if you did not go to college?

In a simple circular flow diagram,who supplies factors of production in markets and who buys these factors of production? Who supplies goods and services in markets and who buys these goods and services?

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

Figure 2-1 -Refer to Figure 2-1.________ is (are)inefficient in that not all resources are being used.

An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point inside the frontier.