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

Stricter laws and regulations to protect intellectual property rights

Table 2-10 Table 2-10 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 2-10.What is Horace's opportunity cost of grooming a dog?

Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables. -Refer to Figure 2-2.If Mendonca chooses to produce 160 pounds of vegetables,how much meat can it produce to maximize production?

Any output combination outside a production possibility frontier is associated with unused or underutilized resources.

Which of the following is a factor of production?

Which of the following is a flow in the circular flow model?

Figure 2-14 -Refer to Figure 2-14.Which two arrows in the diagram depict the following transaction: Barney earns $250 for selling scissors and razors to Floyd's Barber Shop.

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 bolt of cotton in Indonesia?

The opportunity cost of going to an outdoor music festival is

The Great Depression of the 1930s with a large number of workers and factories unemployed would be represented in a production possibilities frontier graph by

Any output combination along a production possibility frontier is associated with fully utilized resources.

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.Honduras has a comparative advantage in the production of

What is meant by the term "free market"?

Figure 2-10 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. -Refer to Figure 2-10.Which country has a comparative advantage in the production of honey?

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

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.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?

The ________ demonstrates the roles played by households and firms in the market system.

Table 2-11 Table 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2-11.Does either Ireland or Scotland have an absolute advantage and if so,in what product?

Figure 2-6 -Refer to Figure 2-6.If the economy is currently producing at point C,what is the opportunity cost of moving to point B?

The points outside the production possibilities frontier are