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

For each watch that Switzerland produces,it gives up the opportunity to make 50 pounds of chocolate.Germany can produce 1 watch for every 100 pounds of chocolate it produces.Which of the following is true about the comparative advantage between the two countries?

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.Thailand has a comparative advantage in the production of

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.Which country has a comparative advantage in the production of coconuts?

The ________ production points on a production possibilities frontier are the points along and inside the production possibilities frontier.

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 snow cone in Greenland?

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 50 dozen roses,how many orchids can it produce to maximize production?

If opportunity costs are ________,the production possibilities frontier would be graphed as a negatively sloped straight line.

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

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 8 ascots and 18 bowties would appear

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.What is the opportunity cost of one dozen roses?

An inward shift of the production possibilities frontier represents

A redwood forest is not an example of a factor of production but the harvested and processed redwood is a factor of production.

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.What is the opportunity cost of one dozen orchids?

Figure 2-10 -Refer to Figure 2-10.In the circular flow diagram,economic agents M represent

Which of the following is an example of spending on factors of production in the circular flow model?

A student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days.This statement suggests that

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

The basis for trade is absolute advantage,not comparative advantage.

If property rights are not well enforced,all of the following are likely to occur except

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