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

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.If the two countries specialise and trade,who should export guitars?

The production possibility frontier model assumes which of the following?

Stricter laws and regulations to protect intellectual property rights

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.What is Horace's opportunity cost of grooming a dog?

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 30 calzones would appear

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 Haley's opportunity cost of making a bracelet?

What is economic growth?

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.Which of the following statements is true?

Increasing opportunity cost is represented by a ________ production possibility frontier.

Without an increase in the supply of factors of production,how can a nation achieve economic growth?

If a country produces only two goods,it is possible to have a comparative advantage in the production of both those goods.

If the best surgeon in town is also the best at cleaning swimming pools then,according to economic reasoning,this person should

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 5 pillows and 21 blankets would appear

Table 2-6 Table 2-6 shows the number of labour hours required to produce a digital camera and a kilogram of wheat in China and South Korea. -Refer to Table 2-6.What is China's opportunity cost of producing one digital camera?

An outward shift of a nation's production possibility frontier represents

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 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 economic growth?

The payment received by suppliers of entrepreneurial skills is called wages.

For each surfboard that Australia produces,it gives up the opportunity to make 25 boomerangs.New Zealand can produce 1 surfboard for every 15 boomerangs it produces.Which of the following is true about the comparative advantage between the two countries?

What is a production possibility frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?

A decrease in population shifts the production possibility frontier outwards over time.