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

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. 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 cotton?

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. -For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces. Which of the following is true about the comparative advantage between the two countries?

Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables. -Refer to Figure 2-2. What is the opportunity cost of one pound of vegetables?

Which of the following statements is true about a simple circular flow model?

Figure 2-19 -Refer to Figure 2-19. Which two arrows in the diagram depict the following transaction: Myrna earns $450 for working at HempHill's Drug Store.

Stricter laws and regulations to protect intellectual property rights

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?

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 20 sliders and 60 hot wings would appear

You have an absolute advantage whenever you

Which of the following is an example of spending on factors of production in the circular flow model?

Table 2-9 Table 2-9 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-9. What is Haley's opportunity cost of making a necklace?

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

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 Betty's opportunity cost of making a bench?

Entrepreneurs bring together the factors of production to produce goods and services.

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4. A movement from ________ could occur because of additional government restrictions toward allowing immigrant labor.

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 movements: a. from point V to point W B. from point W to point Y C. from point Y to point Z Which of the movements listed above represents advancements in technology with respect to only plastic production?

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. What is the opportunity cost of 80 dozen orchids?

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

Table 2-17 Table 2-17 shows the output per week of two people, James and Lucy. They can either devote their time to making wagons or making tricycles. -Refer to Table 2-17. What is James's opportunity cost of making a wagon?

Figure 2-15 Figure 2-15 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles. -Refer to Figure 2-15. What is the opportunity cost of producing 1 snow cone in Iceland?