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

Table 2-3 Production Choices for Dina's Cafe -Refer to Table 2-3.Dina faces ________ opportunity costs in the production of sliders and hot wings.

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

If a nation changes its laws to more actively enforce intellectual property rights,all of the following will most likely take place except

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.Which country has a comparative advantage in the production of cashews?

Figure 2-3 Figure 2-3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2-3.A movement from ________ is the result of negative technological change in plastic production.

An example of a factor of production is

The slope of a production possibility frontier

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?

Comparative advantage means the ability to produce a good or service

Table 2-5 Table 2-5 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 2-5.Which of the following statements is true?

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

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 Indonesia?

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 motorcycles?

Which of the following is a factor of production?

Which of the following would shift a nation's production possibility frontier outward?

What is comparative advantage? What is absolute advantage?

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.general technological advancement c.a decrease in consumer wealth Which of the events listed above could cause a movement from X to V?

How does Adam Smith's idea of the 'invisible hand' apply to the various parts,made by many different manufacturers in many different countries,that are used by Apple to produce an iPad?

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

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