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

Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland.Each country produces two goods,snow cones and popsicles. -Refer to Figure 2-9.What is the opportunity cost of producing 1 popsicle in Greenland?

Suppose in the United States,the opportunity cost of producing a motor engine is 4 auto bodies.In Canada,the opportunity cost of producing a motor engine is 2 auto bodies. a.What is the opportunity cost of producing an auto body for the United States? b.What is the opportunity cost of producing an auto body for Canada? c.Which country has a comparative advantage in the production of auto bodies? d.Which country has a comparative advantage in the production of motor engines?

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.What is Japan's opportunity cost of producing one pound of rice?

In a production possibilities frontier model,a point inside the frontier is

Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Vidalia,a nation that produces two goods,roses and orchids. -Refer to Figure 2-2.If Vidalia chooses to produce 50 dozen roses,how many orchids can it produce to maximize production?

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.What is Thailand's opportunity cost of producing one pound of rice?

If a country produces only two goods,then it is not possible to have a comparative advantage in the production of both those goods.

If you can produce more of something than others with the same resources,you have

The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by

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 Estonia's opportunity cost of producing one cell phone?

The primary purpose of patents and copyrights is to

An example of a factor of production is

As job opportunities for women and the wages those jobs pay have increased,the opportunity cost of doing housework has ________,so many families have chosen to hire specialists in households chores,such as cleaning services and lawn care services,because the cost of these specialists is ________ than the cost of the wife (or husband)performing those chores.

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.A movement from ________ could occur because of an influx of immigrant labor.

For a person to have a comparative advantage in producing a product,he must be able to produce that product at a higher opportunity cost than his competitors.

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

Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland.Each country produces two goods,snow cones and popsicles. -Refer to Figure 2-9.Which country has a comparative advantage in the production of snow cones?

On October 5,2015,12 nations,including the United States,reached an agreement on the Trans-Pacific Partnership (TPP)treaty,a free-trade agreement that has been negotiated in total secrecy for more than five years.One of the more controversial parts of the agreement deals with intellectual property rights,with details of this provision released to the public by the Website Wikileaks.According to Wikileaks,the intellectual property rights section of the TPP contains regulations that would potentially have "wide-ranging effects on internet services,medicines,publishers,civil liberties,and biological patents." Included in these regulations is the potential to extend patents on pharmaceuticals which could delay the development of less expensive,generic versions of the patented drugs. -Refer to the Article Summary.If the 12 nations that are a part of the TPP do not agree to these stricter pharmaceutical patent laws as a way to increase intellectual property rights and ignore any international agreements which do protect these intellectual property rights,which of the following would most likely occur?

Once the copyright on a book expires,

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 events: a.a decrease in the unemployment rate B.an increase in technology with respect to both food and plastic production C.a war that kills a significant portion of a nation's population Which of the events listed above could cause a movement from W to Y?