Exam 2: Choices and Trade-Offs in the Market

A decrease in population shifts the production possibility frontier outwards over time.

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.a decrease in the unemployment rate B.an increase in a nation's money supply C.an influx of immigrant workers Which of the events listed above could cause a movement from X to Z?

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 D?

Figure 2.6 Figure 2.6 above shows the production possibility frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2.6.Suppose Vidalia is currently producing 120 dozen roses per period.How many orchids is it also producing,assuming that resources are fully utilised?

Which of the following is an example of a factor of production?

A bed of oysters is not an example of a factor of production but the shucked oysters used to make oyster stew is a factor of production.

Which of the following statements is true?

How does Adam Smith's idea of the 'invisible hand' apply to the various parts,made by many different manufacturers in many different countries,that are used by Apple to produce an iPad? _____________________________________________________________________________________________ _____________________________________________________________________________________________

If the production possibility frontier is ________,then opportunity costs are constant as more of one good is produced.

Any output combination along a production possibility frontier is associated with fully utilised resources.

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 50 hot wings would appear________.

Consider the following items: A.the novel The DaVinci Code by Dan Brown B.the 'The Spirited Shipper',an innovative wine shipping box C.a Swiss chef's award-winning recipe D.an original fabric design,for example,the fabric used for 'Coach' bags and luggage Which of the items listed is an example of intellectual property?

Entrepreneurs bring together the factors of production to produce goods and services.

Which of the following is not a factor of production?

Wages is the resource income earned by those who supply________.

If a country is producing efficiently and is on the production possibility frontier,the country can produce more of one good without producing less of the other good.

An inward shift of a nation's production possibility frontier can occur due to________.

Figure 2.6 Figure 2.6 above shows the production possibility frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2.6.Suppose Vidalia is currently producing 60 dozen orchids per period.How many roses is it also producing,assuming that resources are fully utilised?

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 21 blankets would appear________.

An increase in the unemployment rate may be represented as a movement from a point on the production possibility frontier to a different point on the frontier.