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

Table 2-13 Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats. -Refer to Table 2-13. Which of the following statements is true?

Figure 2-14 Figure 2-14 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts. -Refer to Figure 2-14. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?

Figure 2-10 -Refer to Figure 2-10. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -According to the production possibility model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?

Table 2-4 Production Choices for Dina's Diner -________ a nation's production possibilities frontier represents economic growth.

An organization of producers that limits the amount of a good produced is known as a

Consider the following items: a. the novel The DaVinci Code by Dan Brown B. the "The Spirited Shipper," an innovative wine shipping box C. a Swiss chef's award-winning recipe D. an original fabric design, for example, the fabric used for "Coach" bags and luggage Which of the items listed is an example of intellectual property?

Figure 2-13 Figure 2-13 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. -Refer to Figure 2-13. What is the opportunity cost of producing one gallon of milk in Bora Bora?

Table 2-4 Production Choices for Dina's Diner -Suppose there is some unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?

Table 2-5 Production choices for Nadia's Neckware -Refer to Table 2-5. Assume Nadia's Neckware only produces ascots and bowties. A combination of 24 ascots and 12 bowties would appear

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

Table 2-10 Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles. -Refer to Table 2-10. What is Fred's opportunity cost of making a unicycle?

Figure 2-8 Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2-8. If Vidalia chooses to produce 50 dozen roses, how many orchids can it produce to maximize production?

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

What is economic growth?

Table 2-11 Table 2-11 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-11. Does either China or South Korea have an absolute advantage and if so, in what product?

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

Table 2-4 Production Choices for Dina's Diner -Refer to Table 2-4. Dina faces ________ opportunity costs in the production of sliders and hot wings.

Increasing opportunity cost along a bowed out production possibilities frontier occurs because

Carmelita can perform either a combination of 35 manicures and 70 pedicures or a combination of 50 manicures and 45 pedicures. If she now performs 35 manicures and 70 pedicures, what is the opportunity cost of performing an additional 15 manicures?