Exam 2: Trade-Offs, Comparative Advantage, and the Market System

An outward shift of a nation's production possibilities frontier represents

Table 2-9 Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-9.What is Honduras's opportunity cost of producing one sailboat?

Table 2-1 Production choices for Tomaso's Trattoria -Refer to Table 2-1.Assume that Tomaso's Trattoria only produces pizzas and calzones.A combination of 36 pizzas and 30 calzones would appear

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

Table 2-10 Table 2-10 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 2-10.What is Horace's opportunity cost of grooming a dog?

If a country produces only two goods, then it is not possible to have an absolute advantage in the production of both goods.

If opportunity costs are constant, the production possibilities frontier would be graphed as

Figure 2-14 -Refer to Figure 2-14.Identify the two arrows in the diagram that depict the following transaction: Dorian Gray hires "Wild Oscar," a professional portrait artist, to paint his picture.

Table 2-9 Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-9.If the two countries specialize and trade, who should export canoes?

Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables. -Refer to Figure 2-2.If Mendonca chooses to produce 160 pounds of vegetables, how much meat can it produce to maximize production?

Table 2-9 Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. -Refer to Table 2-9.If the two countries specialize and trade, who should export sailboats?

Table 2-2 Production choices for Billie's Bedroom Shop -Refer to Table 2-2.Assume that Billie's Bedroom Shop only produces pillows and blankets.Billie faces ________ opportunity costs in the production of pillows and blankets.

Table 2-6 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-6.What is Haley's opportunity cost of making a necklace?

"An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by

The opportunity cost of going to an outdoor music festival is

Consider the following items: A.the album "Divide" by Ed Sheeran B.a Dutch horticulturalist's new method for cultivating hybrid tulips C.Rolls Royce's "Spirit of Ecstasy" hood ornament design D.the fine china department at a Macy's department store Which of the items listed is an example of intellectual property?

Scarcity

Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-9.What is the opportunity cost of producing 1 pound of cashews in Indonesia?

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. -Refer to Figure 2-4.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?

Table 2-6 Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-6.What is Serena's opportunity cost of making a bracelet?