Exam 2: Economic Tools and Economic Systems.

Table 2.2 Option Amount \ 100 \ 50 \ 25 \ 15 \ 0 -Refer to Table 2.2. You have $100 to spend and five options to choose from. What is the opportunity cost of choosing option D when you really wanted option B?

Don can produce 10 pens or 20 pencils in one hour, while Bob can produce 5 pencils or 15 pens in one hour. Which of the following statements is correct?

In one week, Sami can knit 5 sweaters or bake 240 cookies. In one week, Leila can knit 15 sweaters or bake 480 cookies. Sami's opportunity cost of knitting one sweater is _____

Of the various types of economic systems, pure market capitalism involves the greatest government interference and control over the economy.

Opportunity cost is the difference between the benefits and the costs of a choice.

A mixed economy is one in which _____

Exhibit 2.1 ​ -Refer to Exhibit 2.1 which shows the production for rice and T-shirts for two countries: Costa Rica and the United States. In the United States, the opportunity cost of 1 ton of rice is: For answer to be correct, for the United States, on the vertical axis, maximum T-shirt production should touch 1000 units.

In one week, Sami can knit 5 sweaters or bake 240 cookies. In one week, Leila can knit 15 sweaters or bake 480 cookies. Leila's opportunity cost of baking one cookie is _____

Table 2.3 Table 2.3 Products A B C D E Capital goods 0 1 2 3 4 Consumer goods 40 35 20 7 0 -Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. What is the opportunity cost of producing 2 units of capital goods at point C?

Points inside the production possibilities frontier represent _____

Any movement along a bowed-out production possibilities frontier involves _____

A medium of exchange must be _____

Exhibit 2.1 ​ -Refer to Exhibit 2.1, which shows the production for rice and T-shirts for two countries: Costa Rica and the United States. If the United States produces exactly half of its total production in each good, what will it produce?

Table 2.1 Table 2.1 Item Movie \ 0 \ 10 \ 20 \ 30 \ 40 Restaurant \ 40 \ 30 \ 20 \ 10 \ 0 -Refer to Table 2.1. You can spend $40 on going to the movies or eating at a restaurant, or both. What is the opportunity cost of spending all your money at the restaurant?

Specialization often leads to gains in productivity for society as a whole.

If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning, then _____

When deciding how to divide up tasks, ________________ is more important than absolute advantage.

What is the term for giving up one choice for another opportunity?

The U.S. economy is best characterized as a _____

Adam Smith believed that people's pursuit of their own self-interests _____