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

Table 2-7 Table 2-7 shows the output per week of two people,Minnie and Mickey.They can either devote their time to making hats or making umbrellas. -Refer to Table 2-7.Which of the following statements is true?

________ shows that if all resources are fully and efficiently utilized,more of one good can be produced only by producing less of another good.

The production possibilities frontier model assumes all of the following except

If a country is producing efficiently and is on the production possibilities frontier,producing more of one good would result in a movement along the frontier.

In economics,the term "free market" refers to a market where no sales tax is imposed on products sold.

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.What is George's opportunity cost of cultivating a garden?

The ________ production points on a production possibility curve are the points along and inside the production possibility frontier.

Firms

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 60 sliders and 25 hot wings would appear

Which of the following are represented by the same flow in the circular flow model?

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 decrease in the unemployment rate B.general technological advancement C.an increase in consumer wealth Which of the events listed above could cause a movement from V to X ?

Table 2-5 Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. -Refer to Table 2-5.Does either Estonia or Finland have an absolute advantage and if so,in what product?

Table 2-7 Table 2-7 shows the output per week of two people,Minnie and Mickey.They can either devote their time to making hats or making umbrellas. -Refer to Table 2-7.What is Minnie's opportunity cost of making a hat?

If the best lawyer in town is also the best at operating a word processor,then according to economic reasoning,this person should

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 Lucy's opportunity cost of making a tricycle?

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

What causes a production possibilities frontier to shift inward?

Figure 2-10 -Refer to Figure 2-10.In the circular flow diagram,economic agents M represent

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.Which of the following statements is true?

If a country produces only two goods,then it is not possible to have a comparative advantage in the production of both those goods.