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

In a production possibility frontier model,a point ________ the frontier is productively inefficient.

Figure 2-7 Figure 2-7 shows the production possibility frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-7.What is the opportunity cost of producing 1 bolt of cotton in Pakistan?

If Tanisha can audit more tax returns in one hour than Libby,then Tanisha has an absolute advantage in auditing tax returns.

It is possible to have a comparative advantage in producing a good or service without having an absolute advantage.

Suppose there is no unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

If a commercial dairy farm wants to raise funds to purchase feeding troughs,it does so in the

As women's wages have risen relative to men's wages,the opportunity cost to women of doing housework has ________ than the opportunity cost to men.

Table 2-8 Table 2-8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2-8.What is Ireland's opportunity cost of producing one motorcycle?

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 2-2 Production choices for Billie's Bedroom Shop -Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear

Figure 2-3 Figure 2-3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2-3.Consider the following events: a.an increase in the unemployment rate b.a decrease in a nation's money supply c.a war that kills a significant portion of a nation's population Which of the events listed above could cause a movement from Y to W?

Consider the following items: a.the album '21' by Adele b.a Dutch horticulturalist's new method for cultivating hybrid tulips c.Rolls Royce's 'Spirit of Ecstasy' hood ornament design d.the sale of Tumi luggage at a David Jones department store Which of the items listed is an example of intellectual property?

Table 2-1 Production choices for Tomaso's Trattoria -Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.A combination of 24 pizzas and 15 calzones would appear

Figure 2-7 Figure 2-7 shows the production possibility frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-7.What is the opportunity cost of producing 1 kilogram of cashews in Indonesia?

The production possibility frontier model shows that

Table 2-4 Table 2-4 shows the output per week of two jewellers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-4.What is Serena's opportunity cost of making a necklace?

Which of the following statements about an entrepreneur is false?

Table 2-3 Production Choices for Dina's Cafe -Refer to Table 2-3.Assume Dina's Cafe only produces sliders and hot wings.A combination of 80 sliders and 50 hot wings would appear

Which of the following statements is true?

Figure 2-6 Figure 2-6 above shows the production possibility frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2-6.Suppose Vidalia is currently producing 60 dozen orchids per period.How many roses is it also producing,assuming that resources are fully utilised?