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

Table 2-19 Table 2-19 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 2-19. What is Wilma's opportunity cost of making a bench?

________ exists because unlimited wants exceed the limited resources available to fulfill those wants.

Table 2-20 Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-20. If the two countries specialize and trade, who should export wristwatches?

Table 2-4 Production Choices for Dina's Diner -Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 50 sliders and 50 hot wings would appear

A critical function of the government in facilitating the operation of a market economy is

If the opportunity cost of producing more of one good increases as more of that good is produced, then the production method is inefficient.

When you purchase a new pair of jeans you do so in the

Table 2-15 Table 2-15 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 2-15. Which of the following statements is true?

Figure 2-3 -Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas. Which of the graphs in Figure 2-3 represent(s) his production possibilities frontier?

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

An inward shift of the production possibilities frontier represents

Table 2-20 Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-20. Thailand has a comparative advantage in the production of

The unattainable points in a production possibilities diagram are

Table 2-3 Production Choices for Dina's Diner -Refer to Table 2-3. Dina faces ________ opportunity costs in the production of sliders and hot wings.

Figure 2-17 -Refer to Figure 2-17. One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A. What is market C and who are economic agents A?

Table 2-12 Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-12. What is Honduras's opportunity cost of producing one canoe?

Figure 2-18 -Refer to Figure 2-18. One segment of the circular flow diagram in the figure shows the flow of funds from economic agents E to market F. Who are economic agents E and what is market F?

Table 2-16 Table 2-16 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 2-16. Finland has a comparative advantage in the production of

Figure 2-12 Figure 2-12 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-12. What is the opportunity cost of producing 1 bolt of cotton in Pakistan?

Published in 1776, ________ was written by Adam Smith.