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

Which of the following is not a factor of production?

An inward shift of a nation's production possibilities frontier can occur due to

Table 2-9 Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-9.What is Honduras's opportunity cost of producing one sailboat?

A successful market economy requires

All of the following are examples of spending on factors of production in the circular flow model except

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.China has a comparative advantage in the production of

The production possibilities frontier model assumes which of the following?

Figure 2-11 -Refer to Figure 2-11.One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M.What is market K and who are economic agents M?

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-8.What is China's opportunity cost of producing one digital camera?

On a diagram of a production possibility frontier,economic growth is represented by the slope of the production possibility frontier.

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

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

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?

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

Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-9.What is the opportunity cost of producing 1 pound of cashews in Indonesia?

Suppose your expenses for this term are as follows: tuition: $10,000,room and board: $6,000,books and other educational supplies: $1,000.Further,during the term,you can only work part-time and earn $8,000 instead of your full-time salary of $20,000.What is the opportunity cost of going to college this term,assuming that your room and board expenses would be the same even if you did not go to college?

Scarcity

If a brewery wants to raise funds to purchase a new fermenting vat,it does so in the

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

Households ________ final goods and services in the ________ market.