Exam 2: Choices and Trade Offs in the Market

All of the following are critical functions of the government in facilitating the operation of a market economy except:

Consider the following items: A.the novel The DaVinci Code by Dan Brown B.the 'The Spirited Shipper', an innovative wine shipping box C.a Swiss chef's award-winning recipe D.an original fabric design, for example, the fabric used for 'Coach' bags and luggage Which of the items listed is an example of intellectual property?

Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2.3. Consider the following events: A.a reduction in the patent protection period to no more than two years B.a war that destroys a substantial portion of a nation's capital stock C.the lack of a secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?

Figure 2.5 -Refer to Figure 2.5. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?

Table 2.1 Production choices for Tomaso's Trattoria -Refer to Table 2.1. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 30 pizzas and 35 calzones would appear:

Figure 2.7 Figure 2.7 shows the production possibility frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2.7. What is the opportunity cost of producing 1 kilogram of cashews in Indonesia?

Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2.3. A movement from ________ could occur because of an influx of immigrant labour.

The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products.

If the production possibility frontier is ________, then opportunity costs are constant as more of one good is produced.

The principle of opportunity cost is that:

Table 2.5 Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles. -Refer to Table 2.5. What is Barney's opportunity cost of making a unicycle?

Table 2.6 Table 2.6 shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea. -Refer to Table 2.6. If the two countries specialise and trade, who should export wheat?