Exam 2: Choices and Trade-Offs in the Market

What is true about the slope of a production possibility frontier?

What is the difference between product markets and factor markets? _____________________________________________________________________________________________ _____________________________________________________________________________________________

In a two-good,two-country world,if one country has an absolute advantage in the production of both goods,it cannot benefit by trading with the other country.

How would the production possibility frontier be graphed if opportunity costs are constant?

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.Where would a combination of 5 pillows and 21 blankets appear?

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

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

Because the copyright on the L.Frank Baum book The Wonderful Wizard of Oz expired many years ago,the actual written words from the book are in the public domain.Publishers who now choose to sell their own versions of the book________.

What is shown by the production possibility frontier model?

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.Which of the following statements is true?

Increasing opportunity cost is represented by a ________ production possibility frontier.

For a person to have a comparative advantage in producing a product,she must be able to produce that product at a lower opportunity cost than her competitors.

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 grooming a dog?

In a free market there are significant restrictions on how a good or service can be produced or sold.

Who wrote An Inquiry into the Nature and Causes of the Wealth of Nations,published in 1776?

What does a successful market economy require?

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 Tammi's opportunity cost of grooming a dog?

What is a major factor contributing to the slow growth rate of less developed economies?

Comparative advantage means the ability to produce a good or service________.

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 Haley's opportunity cost of making a necklace?