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

Specialising in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except

Rayburn Reed is a highly talented photographer.He has chosen to specialise in photography because of all of the following except

The basis for trade is comparative advantage,not absolute advantage.

Table 2-7 Table 2-7 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 2-7.Which of the following statements is true?

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 120 sliders and 100 hot wings would appear

Each person goes about her daily business seeking to maximise her own self-interest.In doing so,she contributes to the welfare of society at large.This is the idea underlying Adam Smith's 'invisible hand'.

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.What is the opportunity cost of 100 dozen roses?

Figure 2-1 -Refer to Figure 2-1.Point C is

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.Billie faces ________ opportunity costs in the production of pillows and blankets.

The resource income earned by those who supply ________ is called wages.

The principle of opportunity cost is that

If additional units of a good could be produced at a constant opportunity cost,the production possibility frontier would be bowed outward (concave).

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

Figure 2-1 -Refer to Figure 2-1.Point B is

The attainable production points on a production possibility curve are

The term 'property rights' refers to

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

All of the following countries come close to the free market benchmark except

The natural resources used in production are made available in the

Crude oil is not an example of a factor of production,but when crude oil is processed into petrol,it is a factor of production.