Exam 3: Exchange and Markets

Absolute advantage is when one producer has greater productivity compared to another producing the same product.

If two people both produce goods and each has a comparative advantage,and they exchange goods with each other for mutual benefit,it is called a(n)________.

During World War II,trade among camps caused the price of beef in camps with mainly Sikh prisoners who did NOT eat beef to

Recall the Application about productivity in the nation of Latvia in the 1990s to answer the following question(s). -According to the Application,if Latvia has no absolute advantage relative to its neighboring European countries,should it still trade with its neighbors?

A product produced in the home country and sold in another country is ________ for the home country.

A market failure occurs when companies defraud the public.

When there is imperfect competition,the role of government is to take control of production.

A specialized worker does not spend time switching from one task to another.This is called

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Which of the following is true?

Which of the following tends to reduce economic uncertainty?

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Table 3.2 -Producer A has a comparative advantage over Producer B if,in producing a good,

Markets exist to facilitate exchange between people.

Recall the Application about property rights, urban slums, and the role of government in a market economy to answer the following question(s). -According to the Application,granting ownership of a dwelling to its occupant is known as

For country A,an import is a good produced in

An example of a public good is

The market system works by getting each person,motivated by his or her own self-interest,to produce products for other people.

Suppose that a vehicle is invented such that it emits no pollutants into the atmosphere.To achieve an efficient market outcome,the government must

If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour,and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour,then Mary has a comparative advantage in writing multiple choice questions.