Exam 2: Trade-Offs, comparative Advantage, and the Market System

Consider a country that produces only two goods: pineapples and tractors.Suppose it is possible for this country to increase its production of pineapples without producing fewer tractors.In this case,its current output combination is inefficient.

Figure 2-3 -Refer to Figure 2-3.Carlos Vanya grows tomatoes and strawberries on his land.A portion of his land is more suitable for growing tomatoes and the other portion is better suited for strawberry cultivation.Which of the graphs in Figure 2-3 represent his production possibilities frontier?

Table 2-1 Production Choices for Dina's Diner -Refer to Table 2-1.Dina faces ________ opportunity costs in the production of sliders and hot wings.

Which of the following would shift a nation's production possibilities frontier inward?

Adam Smith's ________ refers to the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole.

In a production possibilities frontier model,a point inside the frontier is

Table 2-3 Table 2-3 shows the output per day of two gardeners,George and Jack.They can either devote their time to mowing lawns or cultivating gardens. -Refer to Table 2-3.What is Jack's opportunity cost of mowing a lawn?

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.Consider the following events: a.a reduction in the patent protection period to no more than 2 years B.a war that destroys a substantial portion of a nation's capital stock C.the lack of secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?

In the circular flow model,households demand resources such as labor services in the product market.

In a simple circular flow diagram,who supplies factors of production in markets and who buys these factors of production? Who supplies goods and services in markets and who buys these goods and services?

An example of a factor of production is

All of the following are examples of spending on goods and services in the circular flow model except

What does the term "increasing marginal opportunity cost" mean? How are increasing marginal opportunity costs represented on a bowed out production possibilities frontier?