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

A decrease in the unemployment rate may be represented as a movement from a point inside the production possibilities frontier to a point on the frontier.

Increasing marginal opportunity cost implies that

If society decides it wants more of one good and ________,then it has to give up some of another good and incur some opportunity costs.

Table 2-9 Table 2-9 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-9.Japan has a comparative advantage in the production of

Figure 2-13 -Refer to Figure 2-13.Which two arrows in the diagram depict the following transaction: Lizzie Haxem hires "The Paint Pros," a professional painting company,to paint her home.

Table 2-8 Table 2-8 shows the output per month of two people,Wilma and Betty.They can either devote their time to making marble statues or making marble benches. -Refer to Table 2-8.What is Betty's opportunity cost of making a bench?

Table 2-9 Table 2-9 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-9.What is Thailand's opportunity cost of producing one wristwatch?

Figure 2-8 Figure 2-8 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods,pineapples and coconuts. -Refer to Figure 2-8.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 both pineapples and coconuts?

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.A movement from ________ could occur because of additional government restrictions toward allowing immigrant labor.

If a country is producing efficiently and is on the production possibilities frontier,the only way to produce more of one good is with an advance in technology.

A worker is hired in a

Figure 2-6 -Refer to Figure 2-6.If the economy is currently producing at point D,what is the opportunity cost of moving to point B?

According to the production possibility model,if more resources are allocated to the production of physical and human capital,then all of the following are likely to happen except

An outward shift of a nation's production possibilities frontier can occur due to

A stand of redwood trees is not an example of a factor of production but the harvested and processed redwood is a factor of production.

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

Without technological advancement,how can a nation achieve economic growth?

Figure 2-3 -Refer to Figure 2-3.Carlos Vanya grows tomatoes and strawberries on his land.His land is equally suited for growing either fruit.Which of the graphs in Figure 2-3 represents his production possibilities frontier?

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 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 advancements in technology with respect to both plastic production and food production?

Increasing opportunity cost along a bowed out production possibilities frontier occurs because