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

Figure 2-7 Figure 2-7 shows the production possibilities frontiers for Pakistan and Indonesia.Each country produces two goods,cotton and cashews. -Refer to Figure 2-7.Which country has a comparative advantage in the production of cashews?

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

For a person to have a comparative advantage in producing a product,she must be able to produce that product at a lower opportunity cost than her competitors.

The resource income earned by those who supply ________ is called wages.

Figure 2-4 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?

Households

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

Table 2-4 Table 2-4 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 2-4.If the two countries specialize and trade,who should export digital cameras?

Consider the following items: a.the novel "The DaVinci Code" by Dan Brown B.the "The Spirited Shipper",an innovative wine shipping box C.a Swiss chef's award-winning recipe D.an original fabric design,for example,the fabric used for "Coach" bags and luggage Which of the items listed is an example of intellectual property?

Economic decline (negative growth)is represented on a production possibilities frontier model by the production possibility frontier

In the circular flow model,producers