Exam 2: Comparative Advantage: the Basis for Exchange

An increase in the amount spent on new factories and equipment would cause the production possibilities curve to

If everyone had the same opportunity cost of producing a particular good,then

If Jane can produce 3 pairs of shoes hourly,while Bob can produce 2,then one can infer that the __________ advantage belongs to __________.

Which of the following statements best describe the given production possibilities curve?

Yolanda can produce 2 dresses or 4 shirts in 8 hours of work,while Sandra can produce 3 dresses or 7 shirts in the same amount of time.Yolanda has a(n):

Becky's opportunity cost of producing one gun is

As one progresses from a one-person economy to a large,multi-person economy,the shape of production possibilities curve changes from

Increased specialization in the production of goods

-According to data,Jenny has an absolute advantage in

Joan can produce a maximum of 14 units of good Y and a maximum of 21 units of good X.If Y is on the vertical axis,the equation for her production possibilities curve is

Which of the following factors will NOT cause a production possibilities curve to shift away from the origin?

If a given production combination is efficient,then it must be

Specialization of labour leads to

A concave (bowed out from the origin)production possibilities curve would indicate

A circular flow diagram of an economy shows that

In a two-person,two-good economy,the benefits of labour specialization will be larger when

Of the labelled points,______________ are efficient.

When each individual concentrates on performing the tasks and producing the goods for which she or he has the lowest opportunity cost,they are producing in accordance with the Principle of