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

In a two-good,two country world,if one country has an absolute advantage in the production of both goods,it cannot benefit by trading with the other country.

Which of the following is a factor of production?

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.Which of the following statements is true?

It is not possible to have an absolute advantage in producing a good or service without having a comparative advantage.

A guild is

In a two-good,two country world,if one country has a comparative advantage in the production of one good,it can benefit by trading with the other country.

To compete in the automobile market,Tesla must make many strategic decisions such as whether to introduce a new car model,how to sell and service its cars,and where to advertise.At Tesla's Fremont,California plant,managers must decide on the monthly production quantities of their S and X models.In making this decision,the managers

Izzy Amador is a highly talented tattoo artist.She has chosen to specialize in tattoo art because of all of the following except

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

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.What is Betty's opportunity cost of making a bench?

An outward shift of a nation's production possibilities frontier can occur due to

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

Any output combination along a production possibility frontier is associated with overused or unattainable resources.

In the circular flow model,households supply resources such as labor services in the product market.

Figure 2-16 -Refer to Figure 2-16.One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A.What is market C and who are economic agents A?

Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.A movement from Y to Z

Carmelita can perform either a combination of 35 manicures and 70 pedicures or a combination of 50 manicures and 45 pedicures.If she now performs 35 manicures and 70 pedicures,what is the opportunity cost of performing an additional 15 manicures?

In the circular flow model,households demand resources such as labor services in the product market.

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

The slope of a production possibilities frontier