Exam 2: Choices and Trade-Offs in the Market

How would the production possibility frontier be graphed if opportunity costs are constant?

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.Billie faces ________ opportunity costs in the production of pillows and blankets.

Table 2.3 Production Choices for Dina's Cafe -Refer to Table 2.3.Dina faces ________ opportunity costs in the production of sliders and hot wings.

A decrease in population shifts the production possibility frontier outwards over time.

________ marginal opportunity cost implies that the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.

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.Which of the following statements is true?

If society decides it wants more of one good and all resources are fully utilised, then________.

If Sanjaya can shuck more oysters in one hour than Tatiana, then Sanjaya has a comparative advantage in shucking oysters.

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

Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2.3.A movement from ________ could occur because of an influx of immigrant labour.

Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2.3.A movement from Y to Z:

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.Haley's opportunity cost of making a bracelet is:

A bed of oysters is not an example of a factor of production but the shucked oysters used to make oyster stew is a factor of production.

Figure 2.3 Figure 2.3 shows various points on three different production possibility frontiers for a nation. -Refer to Figure 2.3.A movement from ________ is the result of negative technological change in plastic 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.What is China's opportunity cost of producing one digital camera?

If the best surgeon in town is also the best at cleaning swimming pools, then according to economic reasoning, this person should________.

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.Does either Ireland or Scotland have an absolute advantage and if so, in what product?

What points are outside the production possibility frontier?

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 50 hot wings would appear________.

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.general technological advancement c.an increase in consumer wealth Which of the events listed above could cause a movement from V to W?