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

Figure 2-14 shows the production possibilities frontiers for Greenland and Iceland.Each country produces two goods,snow cones and popsicles. -Refer to Figure 2-14.Which country has a comparative advantage in the production of popsicles?

The production possibilities frontier shows

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

Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.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 advancements in technology with respect to both plastic production and food production?

Figure 2-14 shows the production possibilities frontiers for Greenland and Iceland.Each country produces two goods,snow cones and popsicles. -Refer to Figure 2-14.What is the opportunity cost of producing 1 popsicle in Iceland?

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

Figure 2-18 -Refer to Figure 2-18.Which two arrows in the diagram depict the following transaction: Lizzie Haxem hires "The Paint Pros," a professional painting company,to paint her home.

One Motorcycle One Guitar Ireland 20 hours 4 hours Scotland 8 hours 2 hours Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2-14.What is Ireland's opportunity cost of producing one motorcycle?

A critical function of the government in facilitating the operation of a market economy is

In the desire to have a celebrity's image protected to prevent it from being used in ways he would not approve,a celebrity's estate

What is comparative advantage? What is absolute advantage?

Suppose your expenses for this term are as follows: tuition: $9,000,room and board: $1,500,books and other educational supplies: $1,000.Further,during the term,you can only work part-time and earn $3,000 instead of your full-time salary of $8,000.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?

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

A decrease in the labor force shifts the production possibilities frontier inwards over time.

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.a reduction in the patent protection period to no more than 2 years B.a war that destroys a substantial portion of a nation's capital stock C.the lack of a secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?

The circular flow model demonstrates

What is meant by the term opportunity cost?

The opportunity cost of taking a semester-long economics class is

The points outside the production possibilities frontier are

If additional units of a good could be produced at a constant opportunity cost,the production possibilities frontier would be linear.