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.What is Mickey's opportunity cost of making an umbrella?

Figure 2-5 -Refer to Figure 2-5.If the economy is currently producing at point X,what is the opportunity cost of moving to point W?

Economic growth is represented on a production possibilities frontier model by the production possibility frontier

An inward shift of the production possibilities frontier represents

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.The linear production possibilities frontier in the figure indicates that

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

A welding machine is an example of a factor of production if it is being used to produce automobiles.

If a vineyard wants to raise funds to purchase a new bottling machine,it does so in the

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.What is Finland's opportunity cost of producing one cell phone?

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

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.If Vidalia chooses to produce 60 dozen orchids,how many roses can it produce to maximize production?

If you can produce more of something than others with the same resources,you have

Why are music,television,and movie companies concerned about their products being posted to Internet websites such as YouTube?

Figure 2-1 -Refer to Figure 2-1.________ is (are)technically efficient.

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.What is Estonia's opportunity cost of producing one cell phone?

Figure 2-7 Mercedes Benz produces a full line of luxury automobiles,including coupes,sedans,and SUVs,at a variety of manufacturing plants across the globe.Assume Mercedes Benz produces both coupes and SUVs at its Tuscaloosa,Alabama factory.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions at this factory. -Refer to Figure 2-7.Suppose Mercedes-Benz has to shut down a portion of its facility as it works on remodeling the facility to merge two of its separate assembly lines in preparation for the production of a new,hybrid models.The production decision to shut down temporarily will result in a

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 an umbrella?

Any output combination inside a production possibility frontier is associated with unused or underutilized resources.

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 Jack's opportunity cost of mowing a lawn?

If a country produces only two goods,it is possible to have an absolute advantage in the production of both those goods.