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 South Korea's opportunity cost of producing one digital camera?

Table 2.1 Production choices for Tomaso's Trattoria -Refer to Table 2.1.Assume Tomaso's Trattoria only produces pizzas and calzones.Where would a combination of 36 pizzas and 30 calzones appear?

On a diagram of a production possibility frontier, opportunity cost is represented by the production possibility frontier shifting outward.

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

Figure 2.6 Figure 2.6 above shows the production possibility frontier for Vidalia, a nation that produces two goods, roses and orchids. -Refer to Figure 2.6.What is the opportunity cost of 100 dozen roses?

Increasing opportunity cost is represented by a ________ production possibility frontier.

If a brewery wants to raise funds to purchase a new fermenting tank, it would do so in what market?

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 Haley's opportunity cost of making a necklace?

In a free market there are significant restrictions on how a good or service can be produced or sold.

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

In which market are the natural resources used in production make available?

Stricter laws and regulations to protect intellectual property rights________.

The Great Depression of the 1930s, with a large number of workers and factories unemployed, would be represented in a production possibility frontier graph by:

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 patent protection period to 30 years b.an increase of a nation's capital stock c.an improved property rights system Which of the events listed above could cause a movement from V 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?

Figure 2.2 -Refer to Figure 2.2.Steve Vignetto raises cattle and llamas on his land.A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas.Which of the graphs in Figure 2-2 represents his production possibility frontier?

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 Scotland's opportunity cost of producing one guitar?

What is the difference between product markets and factor markets? _____________________________________________________________________________________________ _____________________________________________________________________________________________

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 bathing a cat?

Jane can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies.If she now bakes 10 cakes and 20 Pies, the opportunity cost of baking an additional 15 cakes is: