Exam 2: Choices and Trade - Offs in the Market

Scarcity

As women's wages have risen relative to men's wages, the opportunity cost to women of doing housework has ________ than has the opportunity cost to men.

The opportunity cost of taking a semester-long economics class is

-Refer to Figure 2-3. Consider the following movements: a. from point V to point W B. from point W to point Y C. from point Y to point Z Which of the movements listed above represents advancements in technology with respect to only plastic production?

What is comparative advantage? What is absolute advantage?

-Refer to Table 2-8. What is Ireland's opportunity cost of producing one motorcycle?

-Refer to Figure 2-3. 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 Y to W?

For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces. Which of the following is true about the comparative advantage between the two countries?

-Refer to Table 2-6. What is China's opportunity cost of producing one kilo of wheat?

Economic decline (negative growth) is represented on a production possibility frontier model by the production possibility frontier

-Refer to Figure 2-3. A movement from Y to Z

The Great Depression of the 1930s, with a large number of workers and factories unemployed, would be represented in a production possibility frontier graph by

-Refer to Table 2-3. Assume Dina's Cafe only produces sliders and hot wings. A combination of 80 sliders and 100 hot wings would appear

Comparative advantage means the ability to produce a good or service

-Refer to Table 2-7. What is Tammi's opportunity cost of grooming a dog?

-Refer to Table 2-6. If the two countries specialise and trade, who should export digital cameras?

-Refer to Figure 2-7. Which country has a comparative advantage in the production of cashews?

If the opportunity cost of producing more of one good remains the same as more of that good is produced, then the production method is inefficient.

According to the production possibility model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?

What is meant by the term 'opportunity cost'?