Exam 2: Choices and Trade-Offs in the Market

Rayburn Reed is a highly talented photographer.He has chosen to specialise in photography because of all of the following except:

Table 2.3 Production Choices for Dina's Cafe Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 160 0 B 120 50 C 80 100 D 40 150 E 0 200 -Refer to Table 2.3.Dina faces ________ opportunity costs in the production of sliders and hot wings.

Table 2.6 One Digital Camera Wheat (per kilogram) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2.6 shows the number of labour hours required to produce a digital camera and a kilogram of wheat in China and South Korea. -Refer to Table 2.6.If the two countries specialise and trade,who should export wheat?

Table 2.6 One Digital Camera Wheat (per kilogram) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2.6 shows the number of labour hours required to produce a digital camera and a kilogram of wheat in China and South Korea. -Refer to Table 2.6.What is China's opportunity cost of producing 1 kilogram of wheat?

The production possibility frontier shows the ________ combinations of two products that may be produced in a particular time period with available resources and current technology.

In which market are the natural resources used in production available?

Table 2.7 Tammi Horace Dogs Groomed 20 12 Cats Bathed 10 8 Table 2.7 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats. -Refer to Table 2.7.What is Horace's opportunity cost of bathing a cat?

Peter can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties and 15 neckties.If he now produces 35 bow ties and 15 neckties,what is the opportunity cost of producing an additional 15 neckties?

If additional units of a good could be produced at a constant opportunity cost,the production possibility frontier would be bowed outward (concave).

What is the opportunity cost of going to an outdoor music festival?

What is meant by the term 'opportunity cost'? __________________________________________________________________________________________________________________________________________________________________________________________

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

Table 2.6 One Digital Camera Wheat (per kilogram) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2.6 shows the number of labour hours required to produce a digital camera and a kilogram of wheat in China and South Korea. -Refer to Table 2.6.What is South Korea's opportunity cost of producing 1 kilogram of wheat?

Table 2.3 Production Choices for Dina's Cafe Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 160 0 B 120 50 C 80 100 D 40 150 E 0 200 -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________.

If the best surgeon in town is also the best at cleaning swimming pools,then according to economic reasoning,this person should________.

Table 2.6 One Digital Camera Wheat (per kilogram) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2.6 shows the number of labour hours required to produce a digital camera and a kilogram of wheat in China and South Korea. -Refer to Table 2.6.South Korea has a comparative advantage in the production of __________.

________ marginal opportunity cost implies that the more resources already devoted to any activity,the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.

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 ________ could occur because of an influx of immigrant labour.

In which market would you purchase a new pair of jeans?

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.What is Serena's opportunity cost of making a bracelet?