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

In a production possibilities frontier model,a point ________ the frontier is productively inefficient.

Wilma Betty Statues 12 14 Benches 4 7 Table 2-19 shows the output per month of two people,Wilma and Betty.They can either devote their time to making marble statues or making marble benches. -Refer to Table 2-19.Which of the following statements is true?

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 Lucy's opportunity cost of making a wagon?

Table 2-4 Production Choices for Dina's Diner Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 80 0 B 60 25 C 40 50 D 20 75 E 0 100 -Refer to Table 2-4.Assume Dina's Diner only produces sliders and hot wings.A combination of 20 sliders and 60 hot wings would appear

If a country is producing efficiently and is on the production possibilities frontier,producing more of one good would result in a movement along the frontier.

What does the term "increasing marginal opportunity cost" mean? How are increasing marginal opportunity costs represented on a bowed out production possibilities frontier?

Table 2-3 Production Choices for Dina's Diner Choice Quantity of Sliders Produced Quantity of Hot Wings Produced A 160 0 B 120 50 C 80 100 D 40 150 E 0 200 -Refer to Table 2-3.Dina faces ________ opportunity costs in the production of sliders and hot wings.

Figure 2-1 -Refer to Figure 2-1.________ is (are)inefficient in that not all resources are being used.

Minnie Mickey Hats 40 50 Urrbrellas 10 5 Table 2-18 shows the output per week of two people,Minnie and Mickey.They can either devote their time to making hats or making umbrellas. -Refer to Table 2-18.What is Minnie's opportunity cost of making an umbrella?

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.What is Tammi's opportunity cost of bathing a cat?

If a country produces only two goods,it is possible to have an absolute advantage in the production of both goods.

Once the copyright on a book expires

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

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 decrease in the unemployment rate B.general technological advancement C.an increase in consumer wealth Which of the events listed above could cause a movement from V to X?

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.Which of the following statements is true?

One Cande One Sailbat Guaternala 10 hours 60 hours Honduras 15 hours 75 hours Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-12.What is Guatemala's opportunity cost of producing one sailboat?

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

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.What is Horace's opportunity cost of bathing a cat?

In a free market there are virtually no restrictions,or at best few restrictions on how factors of production can be employed.

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