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

If additional units of a good could be produced at a constant opportunity cost,the production possibility frontier would be linear.

In the desire to have a celebrity's image protected to prevent it from being used in ways he would not approve,a celebrity's estate

Identify whether each of the following transactions will take place in the factor market or in the product market: a.Shondra buys a Harley-Davidson Softail motorcycle. b.Aimee works 20 hours a week at a grocery store. c.Gustavo sells a warehouse to a produce delivery company. d.Ocean Spray increases employment at its Middleboro,Massachusetts plant.

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 a hat?

Is it possible for a firm to have a comparative advantage in producing something without having an absolute advantage? Why or why not?

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

Which of the following statements is true about a simple 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.an increase in technology with respect to both food and plastic production C.a war that kills a significant portion of a nation's population Which of the events listed above could cause a movement from W to Y ?

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?

Figure 2-13 -Refer to Figure 2-13.Which two arrows in the diagram depict the following transaction: Carter earns a $400 commission for selling men's designer shoes at Brooks Brothers.

Which of the following is a factor of production?

The production possibilities frontier shows

If the production possibilities frontier is linear,then

Izzy Amador is a highly talented tattoo artist.She has chosen to specialize in tattoo art because of all of the following except

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

The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by

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

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 Guatemala?

Figure 2-1 -Refer to Figure 2-1.________ is (are)inefficient in that not all resources are being used.

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 wagon?