Exam 2: Choices and Trade Offs in the Market

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 bolt of cotton 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. Consider the following events: A.an increase in the unemployment rate B.general technological advancement C.a decrease in consumer wealth Which of the events listed above could cause a movement from X to V?

When you purchase a new pair of jeans, you do so in the:

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 36 pizzas and 15 calzones would appear:

If additional units of a good could be produced at an increasing opportunity cost, the production possibility frontier would be linear.

Adam Smith's 'invisible hand' refers to:

In economics, the term 'free market' refers to a market where products are traded but not sold.

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

Figure 2.2 -Refer to Figure 2.2. Steve Vignetto raises cattle and llamas on his land. A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas. Which of the graphs in Figure 2.2 represents his production possibility frontier?

If Sanjaya can shuck more oysters in one hour than Tatiana, then Sanjaya has a comparative advantage in shucking oysters.

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 Y to Z:

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 decrease in the unemployment rate B.general technological advancement C.an increase in consumer wealth Which of the events listed above could cause a movement from V to W?

Table 2.3 Production Choices for Dina's Cafe -Refer to Table 2.3. Assume Dina's Cafe only produces sliders and hot wings. A combination of 80 sliders and 75 hot wings would appear:

If society decides it wants more of one good and all resources are fully utilised, then:

An inward shift of a nation's production possibility frontier can occur due to:

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 movements: A.from point V to point W B.from point W to point Y C.from point Y to point Z Which of the movements listed above represents economic growth?

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.an increase in the unemployment rate B.a decrease in a nation's money supply C.a war that kills a significant portion of a nation's population Which of the events listed above could cause a movement from Y to W?

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 Pakistan?

You have an absolute advantage whenever you:

Figure 2.1 -Refer to Figure 2.1. Point B is: