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

Figure 2-7 Figure 2-7 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. -Refer to Figure 2-7.Which country has a comparative advantage in the production of cotton?

Figure 2-11 -Refer to Figure 2-11.Which two arrows in the diagram depict the following transaction: Barney earns $250 for selling scissors and razors to Floyd's Barber Shop.

Figure 2-6 General Motors recently approved for production the Cadillac Converj, an electric car based on its Chevy Volt. The Converj will feature a "Generation 1.5 Voltec" powertrain, with a hybrid engine that runs on a combination of electricity and gasoline. Assume GM chooses to produce both hybrid-engine vehicles and gasoline-engine vehicles for its Cadillac brand. Figure 2-6 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions. -Refer to Figure 2-6.Assume that in 2011,GM was able to reopen one of its factories after an extensive remodelling which now allows for the production of both types of vehicles.This is best represented by the

Without an increase in the supplies of factors of production,how can a nation achieve economic growth?

Figure 2-10 -Refer to Figure 2-10.One segment of the circular flow diagram in the figure shows the flow of funds from economic agents E to market F.Who are economic agents E and what is market F?

Figure 2-2. -Refer to Figure 2-2.The linear production possibilities frontier in the figure indicates that

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

Table 2-4 Table 2-4 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-4.South Korea has a comparative advantage in the production of

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 24 pizzas and 15 calzones would appear

Which of the following are separate flows in the circular flow model?

An increase in the labor force shifts the production possibility frontier inwards over time.

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

If a country produces only two goods,it is possible to have a comparative advantage in the production of both those goods.

Table 2-4 Table 2-4 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. -Refer to Table 2-4.What is China's opportunity cost of producing one digital camera?

Figure 2-5 -Refer to Figure 2-5.If the economy is currently producing at point W,what is the opportunity cost of moving to point X?

Table 2-3 Table 2-3 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 2-3.What is Serena's opportunity cost of making a necklace?

Rayburn Reed is a highly talented photographer.He has chosen to specialize in photography because of all of the following except

Adam Smith's behavioral assumption about humans was that people

Figure 2-9 -Refer to Figure 2-9.One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A.What is market C and who are economic agents A?

Households