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

Figure 2-8 Figure 2-8 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods,pineapples and coconuts. -Refer to Figure 2-8.What is the opportunity cost of producing 1 ton of pineapples in Costa Rica?

Table 2-9 Table 2-9 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. -Refer to Table 2-9.Thailand has a comparative advantage in the production of

Table 2-8 Table 2-8 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 2-8.Which of the following statements is true?

Table 2-10 -Refer to Table 2-10.This table shows the number of labor hours required to produce a wristwatch and a bushel of rice in Japan and Thailand. a.Which country has an absolute advantage in the production of wristwatches? b.Which country has an absolute advantage in the production of rice? c.What is Japan's opportunity cost of producing one wristwatch? d.What is Thailand's opportunity cost of producing one wristwatch? e.What is Japan's opportunity cost of producing one bushel of rice? f.What is Thailand's opportunity cost of producing one bushel of rice? g.If each country specializes in the production of the product in which it has a comparative advantage,who should produce wristwatches? h.If each country specializes in the production of the product in which it has a comparative advantage,who should produce rice?

For each pound of salami that Hungary produces,it gives up the opportunity to make 10 bottles of beer.Slovakia can produce 1 pound of salami for every 8 bottles of beer it produces.Which of the following is true about the comparative advantage between the two countries?

In 18th century Europe,governments gave guilds legal authority to limit production of goods.This authority obstructed the market mechanism because the guild's actions prevented the forces of ________ from coordinating the self-interested decisions of producers and consumers.

A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced.

Table 2-7 Table 2-7 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 2-7.What is Minnie's opportunity cost of making a hat?

Table 2-6 Table 2-6 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 2-6.What is Lucy's opportunity cost of making a wagon?

The production possibilities frontier model assumes all of the following except

Table 2-2 Production choices for Nadia's Neckware -Refer to Table 2-2.Assume Nadia's Neckware only produces ascots and bowties.A combination of 8 ascots and 18 bowties would appear

Figure 2-8 Figure 2-8 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods,pineapples and coconuts. -Refer to Figure 2-8.What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?

Table 2-5 Table 2-5 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 2-5.What is Finland's opportunity cost of producing one cell phone?

List the four broad categories of factors of production.

A critical function of the government in facilitating the operation of a market economy is

If a vineyard wants to raise funds to purchase a new bottling machine,it does so in the

Which of the following is a factor of production?