Exam 2: Choices and Trade Offs in the Market

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. What is South Korea's opportunity cost of producing 1 kilogram of wheat?

Which of the following statements is true?

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. Which of the following statements is true?

Table 2.2 Production choices for Billie's Bedroom Shop -Refer to Table 2.2. Assume Billie's Bedroom Shop only produces pillows and blankets. A combination of 18 pillows and 10 blankets would appear:

If a country is producing efficiently and is on the production possibility frontier, the country can produce more of one good without producing less of the other good.

If the best surgeon in town is also the best at cleaning swimming pools, then according to economic reasoning, this person should:

The payment received by suppliers of entrepreneurial skills is called 'wages'.

Table 2.4 Table 2.4 shows the output per week of two jewellers, Sabrina and Holly. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2.4. What is Sabrina's opportunity cost of making a bracelet?

Figure 2.4 -Refer to Figure 2.4. If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?

If a brewery wants to raise funds to purchase a new fermenting vat, it does so in the:

On a diagram of a production possibility frontier, opportunity cost is represented by the production possibility frontier shifting outward.

For each bottle of wine that France produces, it gives up the opportunity to make 10 kilograms of cheese. Italy can produce one bottle of wine for every 25 kilograms of cheese it produces. Which of the following is true about the comparative advantage between the two countries?

How does Adam Smith's idea of the 'invisible hand' apply to the various parts, made by many different manufacturers in many different countries, that are used by Apple to produce an iPad? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Suppose your expenses for this term are as follows: tuition: $12 000, room and board: $6 000, books and other educational supplies: $1 000. Further, during the term, you can only work part-time and earn $8 000 instead of your full-time salary of $20 000. What is the opportunity cost of going to university this term, assuming that your room and board expenses would be the same even if you did not go to university?

Because the copyright on the L Frank Baum book The Wonderful Wizard of Oz expired many years ago, the actual written words from the book are in the public domain. Publishers who now choose to sell their own versions of the book:

Table 2.7 Table 2.7 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats. -Refer to Table 2.7. What is Horace's opportunity cost of grooming a dog?

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 120 hot wings would appear:

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 120 sliders and 50 hot wings would appear:

________ marginal opportunity cost implies that the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.

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