Exam 2: Choices and Trade-Offs in the Market

Table 2.8 Table 2.8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland. -Refer to Table 2.8.Scotland has a comparative advantage in the production of:

For a person to have a comparative advantage in producing a product, she must be able to produce that product at a lower opportunity cost than her competitors.

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

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.an increase in a nation's money supply c.an influx of immigrant workers Which of the events listed above could cause a movement from X to Z?

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 Indonesia?

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

Crude oil is not an example of a factor of production, but when crude oil is processed into petrol, it is a factor of production.

Which of the following is a factor of production?

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?

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 Pakistan?

Is it possible for a firm to have an absolute advantage in producing something without having a comparative advantage? Why or why not? __________________________________________________________________________________________________________________________________________________________________________________________

What is the opportunity cost of taking a semester long economics class?

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 Tammi's opportunity cost of grooming a dog?

If a country is producing efficiently and is on the production possibility frontier, the only way to produce more of one good is to produce less of the other.

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.Where would a combination of 5 pillows and 21 blankets appear?

To what does the term 'property rights' refer?

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 100 hot wings would appear________.

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.If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?

Peter can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties and 15 neckties.If he now produces 35 bow ties and 15 neckties, what is the opportunity cost of producing an additional 15 neckties?

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?