Exam 2: Choices and Trade-Offs in the Market

Figure 2.2 -Refer to Figure 2.2.Steve Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle,and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-2 represents his production possibility frontier?

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.Haley's opportunity cost of making a bracelet is __________.

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 ________ is the result of negative technological change in plastic production.

What points are outside the production possibility frontier?

Stricter laws and regulations to protect intellectual property rights________.

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 2.6.What is Barney's opportunity cost of making a unicycle?

A nation's production possibility frontier would shift outward from________.

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.If the two countries have the same amount of resources and the same technological knowledge,which country has an absolute advantage in the production of cotton?

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 economic growth?

Figure 2.5 -Refer to Figure 2.5.What is the opportunity cost of moving to point B if the economy is currently producing at point A?

Figure 2.5 -Refer to Figure 2.5.If the economy is currently producing at point D,what is the opportunity cost of moving to point B?

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 Scotland's opportunity cost of producing one motorcycle?

Suppose there is no unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

Figure 2.5 -Refer to Figure 2.5.If the economy is currently producing at point C,what is the opportunity cost of moving to point B?

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 X to Y _________.

Table 2.2 Production choices for Billie's Bedroom Shop Choice Quantity of Pillows Produced Quantity of Blankets Produced A 36 0 B 27 7 C 18 14 D 9 21 E 0 28 -Refer to Table 2.2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 14 blankets would appear________.

What is economic growth? __________________________________________________________________________________________________________________________________________________________________________________________

For each bottle of wine that Italy produces,it gives up the opportunity to make 10 kilograms of cheese.France can produce one bottle of wine for every 25 kilograms of cheese it produces.Which of the following is true about the comparative advantage between the two countries?

If a country produces only two goods,it is possible to have a comparative advantage in the production of both those goods.

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 Scotland's opportunity cost of producing one guitar?