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 China's opportunity cost of producing one kilo of wheat?

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

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 bathing a cat?

Figure 2.5 -Refer to Figure 2.5.What is the opportunity cost of moving to point B if the economy is currently producing at point A?

Which of the following is an example of a factor or production?

The principle of opportunity cost is that _______.

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.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 2.7 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.Which of the following statements is true?

It is possible to have an absolute advantage in producing a good or service without having a comparative advantage.

To what does Adam Smith's invisible hand refer?

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.If the two countries specialise and trade, who should export motorcycles?

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?

Which of the following is not a factor of production?

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.Does either China or South Korea have an absolute advantage and if so, in what product?

As women's wages have risen relative to men's wages, the opportunity cost to women of doing housework has ________ than has the opportunity cost to men.

A decrease in the unemployment rate may be represented as a movement from a point on the production possibility frontier to a point outside the frontier.

What shape does a production possibility frontier take if it displays increasing opportunity costs? What shape does a production possibility frontier take if it displays constant opportunity costs? Which shape is most common in production situations? __________________________________________________________________________________________________________________________________________________________________________________________

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.What is Ireland's opportunity cost of producing one guitar?

An example of a factor or production is:

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