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

If opportunity costs are ________,the production possibilities frontier would be graphed as a negatively sloped straight line.

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 2-1 -Refer to Figure 2-1.________ is (are)technically efficient.

James Lucy Wagons 16 18 Tricycles 32 24 Table 2-17 shows the output per week of two people,James and Lucy.They can either devote their time to making wagons or making tricycles. -Refer to Table 2-17.What is James's opportunity cost of making a tricycle?

Figure 2-1 -Refer to Figure 2-1.Point A is

An example of a factor of production is

An example of a factor of production for Dell is

Tammi Horace Dogs Groomed 20 12 Cats Bathed 10 8 Table 2-13 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 2-13.Which of the following statements is true?

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

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

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

An increase in population shifts the production possibilities frontier inwards over time.

Table 2-2 Production choices for Billie's Bedroom Shop Choice Quantity of Pillows Produced Quantity of Blankets Produced A 36 0 B 27 7 C 18 14 D 9 21 E 0 28 -Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.Billie faces ________ opportunity costs in the production of pillows and blankets.

Table 2-2 Production choices for Billie's Bedroom Shop Choice Quantity of Pillows Produced Quantity of Blankets Produced A 36 0 B 27 7 C 18 14 D 9 21 E 0 28 -Refer to Table 2-2.Assume Billie's Bedroom Shop only produces pillows and blankets.A combination of 9 pillows and 21 blankets would appear

Pierre can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties and 15 neckties.If he now produces 35 bow ties and 15 neckties,what is the opportunity cost of producing an additional 15 neckties?

Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.A movement from ________ could occur because of additional government restrictions toward allowing immigrant labor.

Figure 2-11 shows the production possibilities frontiers for Pakistan and Indonesia.Each country produces two goods,cotton and cashews. -Refer to Figure 2-11.If the two countries have the same amount of resources and the same technological knowledge,which country has an absolute advantage in the production of cotton?

An example of a factor of production is

A successful market economy requires well defined property rights and

Article Summary On October 5,2015,12 nations,including the United States,reached an agreement on the Trans-Pacific Partnership (TPP)treaty,a free-trade agreement that has been negotiated in total secrecy for more than five years.One of the more controversial parts of the agreement deals with intellectual property rights,with details of this provision released to the public by the Website Wikileaks.According to Wikileaks,the intellectual property rights section of the TPP contains regulations that would potentially have "wide-ranging effects on internet services,medicines,publishers,civil liberties,and biological patents." Included in these regulations is the potential to extend patents on pharmaceuticals which could delay the development of less expensive,generic versions of the patented drugs. -Refer to the Article Summary.If the 12 nations that are a part of the TPP do not agree to these stricter pharmaceutical patent laws as a way to increase intellectual property rights and ignore any international agreements which do protect these intellectual property rights,which of the following would most likely occur?