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

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.Does either Japan or Thailand have an absolute advantage and if so,in what product?

List the four broad categories of factors of production.

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.What is the opportunity cost of producing 1 ton of coconuts in Guatemala?

Table 2-4 Table 2-4 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 2-4.Which of the following statements is true?

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 only plastic production?

Table 2-6 Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-6.What is James's opportunity cost of making a tricycle?

Table 2-1 Production Choices for Dina's Diner -Refer to Table 2-1.Assume Dina's Diner only produces sliders and hot wings.A combination of 40 sliders and 25 hot wings would appear

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.What is the opportunity cost of producing 1 ton of pineapples in Costa Rica?

Table 2-6 Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-6.Which of the following statements is true?

In 18th century Europe,governments gave guilds legal authority to limit production of goods.This authority obstructed the market mechanism because the guild's actions prevented the forces of ________ from coordinating the self-interested decisions of producers and consumers.

Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Vidalia,a nation that produces two goods,roses and orchids. -Refer to Figure 2-2.Suppose Vidalia is currently producing 20 dozen orchids per period.How many roses is it also producing,assuming that resources are fully utilized?

Suppose in Belgium,the opportunity cost of producing a trombone is 8 clarinets.In Denmark,the opportunity cost of producing a trombone is 6 clarinets. a.What is the opportunity cost of producing a clarinet for Belgium? b.What is the opportunity cost of producing a clarinet for Denmark? c.Which country has a comparative advantage in the production of clarinets? d.Which country has a comparative advantage in the production of trombones?

Households

Suppose your expenses for this term are as follows: tuition: $5,000,room and board: $3,000,books and other educational supplies: $500.Further,during the term,you can only work part-time and earn $4,000 instead of your full-time salary of $10,000.What is the opportunity cost of going to college this term,assuming that your room and board expenses would be the same even if you did not go to college?

Figure 2-10 -Refer to Figure 2-10.In the circular flow diagram,market K represents

Table 2-6 Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-6.What is James's opportunity cost of making a wagon?

It is not possible to have a comparative advantage in producing a good or service without having an absolute advantage.

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 Wilma's opportunity cost of making a statue stick?

Figure 2-11 -Refer to Figure 2-11.In the circular flow diagram,who are economic agents A and who are economic agents B?