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

Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-9 shows the output per week of two jewelers,Serena and Haley.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-9.Which of the following statements is true?

Figure 2-12 shows the production possibilities frontiers for Tahiti and Bora Bora.Each country produces two goods,milk and honey. -Refer to Figure 2-12.What is the opportunity cost of producing one gallon of milk in Bora Bora?

Which of the following is a factor of production?

Figure 2-18 -Refer to Figure 2-18.Which two arrows in the diagram depict the following transaction: Stanley purchases the novel,"Night of Sorrows" for his summer reading pleasure.

Specializing in the production of a good or service in which one has a comparative advantage enables a country to do which of the following?

Which of the following statements is true?

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 50 sliders and 50 hot wings would appear

One Cell Phone Lumber (per board foot) Estonia 40 hours 8 hours Finland 16 hours 4 hours Table 2-16 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. -Refer to Table 2-16.What is Finland's opportunity cost of producing one cell phone?

Suppose in Belgium,the opportunity cost of producing a trombone is 8 clarinets.In Denmark,the opportunity cost of producing a trombone is 6 clarinets. a.What is the opportunity cost of producing a clarinet for Belgium? b.What is the opportunity cost of producing a clarinet for Denmark? c.Which country has a comparative advantage in the production of clarinets? d.Which country has a comparative advantage in the production of trombones?

If society decides it wants more of one good and ________,then it has to give up some of another good and incur some opportunity costs.

Serena Haley Bracelets 8 9 Necklaces 16 12 Table 2-9 shows the output per week of two jewelers,Serena and Haley.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-9.What is Haley's opportunity cost of making a necklace?

If additional units of a good are produced at an increasing opportunity cost,the production possibilities frontier would be bowed outward (concave).

One Digital Camera Wheat (per pound) China 100 hours 4 hours South Korea 60 hours 3 hours Table 2-11 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 2-11.What is South Korea's opportunity cost of producing one pound of wheat?

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

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 canoe?

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 economic growth?

What is a production possibilities frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?

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 wagon?

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

One Wristwatch Rice (per pound) Japan 50 hours 2 hours Thailand 30 hours 1.5 hours Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-20.Does either Japan or Thailand have an absolute advantage and if so,in what product?