Exam 3: Exchange and Markets

Table 3.3 -Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Nigel's opportunity cost of producing one bandana is

Table 3.3 -Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Which of the following is true?

Table 3.3 -Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Which of the following is true?

Table 3.2 -Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is true?

Table 3.1 -The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n)

Market failure happens when a market does not generate the most efficient outcome.

What does it mean for a person or nation to have a comparative advantage in producing a product?

Jobs lost to outsourcing can be partially offset by jobs gained from

Imagine two countries, Zorba and Anduluvia. Zorba is producing everything at a lower resource cost than Anduluvia. If the two countries trade what is the reason?

When a specialized worker gains insights into a particular task that leads to better production methods, this is called

What does it mean for a nation to have an absolute advantage in producing a product?

Table 3.3 -Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Nigel's opportunity cost of producing one hair pin is

The more times a worker performs a particular task, the more proficient the worker becomes at that task. This source of productivity increase is called

Table 3.3 -Jimbo has a comparative advantage over Ned in producing a good if

Table 3.3 -Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Mia's opportunity cost of producing one hair pin is

Table 3.1 -Based on the data in Table 3.1, if Jesse and April choose to specialize and trade, then

If a person has an absolute advantage in some activity, she must have a comparative advantage in that activity as well.

The principles of comparative advantage and specialization only apply to trade between different nations.

Markets exist to facilitate exchange between people.

Table 3.2 -Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is true?