Exam 2: Choices and Trade-Offs in the Market

A decrease in the unemployment rate may be represented as a movement from a point on the production possibility frontier to a point outside the frontier.

Table 2.1 Production choices for Tomaso's Trattoria Choice Quantity of Pizzas Produced Quantity of Calzones Produced A 48 0 B 36 15 C 24 30 D 12 45 E 0 60 -Refer to Table 2.1.Assume Tomaso's Trattoria only produces pizzas and calzones.Where would a combination of 24 pizzas and 30 calzones appear________.

Which of the following countries does not come close to the free market benchmark?

Table 2.8 One Motorcycle One Guitar Ireland 20 hours 4 hours Scotland 8 hours 2 hours Table 2.8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2.8.Ireland has a comparative advantage in the production of _________.

Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation. -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 meant by the term 'free market'? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of the following is a factor of production?

Table 2.8 One Motorcycle One Guitar Ireland 20 hours 4 hours Scotland 8 hours 2 hours Table 2.8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2.8.What is Ireland's opportunity cost of producing one guitar?

Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2.3.Consider the following events: A.an increase in the unemployment rate B.general technological advancement C.a decrease in consumer wealth Which of the events listed above could cause a movement from X to V?

Table 2.1 Production choices for Tomaso's Trattoria Choice Quantity of Pizzas Produced Quantity of Calzones Produced A 48 0 B 36 15 C 24 30 D 12 45 E 0 60 -Refer to Table 2.1.Assume Tomaso's Trattoria only produces pizzas and calzones.What type of opportunity costs does Tomasco face in the production of pizzas and calzones?

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.

Figure 2.1 -Refer to Figure 2.1.Point A is __________.

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

Figure 2.7 Figure 2.7 shows the production possibility frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2.7.Which country has a comparative advantage in the production of cashews?

On a diagram of a production possibility frontier,economic growth is represented by the slope of the production possibility frontier.

It is possible to have an absolute advantage in producing a good or service without having a comparative advantage.

Table 2.4 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2.4 shows the output per week of two jewellers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2.4.Which of the following statements is true?

Table 2.5 Fred Barney Pogo Sticks 24 28 Unicycles 8 14 Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles. -Refer to Table 2.5.What is Barney's opportunity cost of making a pogo stick?

Without an increase in the supplies of factors of production,a nation can achieve economic growth________.

Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2.3.A movement from Y to Z __________.