Exam 2: Choices and Trade - Offs in the Market

Consider the following items: a. the novel The DaVinci Code by Dan Brown B. the 'The Spirited Shipper,' an innovative wine shipping box C. a Swiss chef's award-winning recipe D. an original fabric design, for example, the fabric used for 'Coach' bags and luggage Which of the items listed is an example of intellectual property?

-Refer to Figure 2-1. Point A is

-Refer to Figure 2-5. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?

-Refer to Table 2-6. What is South Korea's opportunity cost of producing one digital camera?

-Refer to Figure 2-3. Consider the following events: a. a reduction in the patent protection period to no more than 2 years B. a war that destroys a substantial portion of a nation's capital stock C. the lack of a secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?

If a commercial dairy farm wants to raise funds to purchase feeding troughs, it does so in the

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

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.

-Refer to Figure 2-4. If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?

An example of a factor of production is

Stricter laws and regulations to protect intellectual property rights

An example of a factor of production is

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

If a country is producing efficiently and is on the production possibility frontier, the country can produce more of one good without producing less of the other good.

The attainable production points on a production possibility curve are

The basis for trade is comparative advantage, not absolute advantage.

-Refer to Figure 2-5. If the economy is currently producing at point C, what is the opportunity cost of moving to point B?

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.

A successful market economy requires

-Refer to Figure 2-7. What is the opportunity cost of producing 1 bolt of cotton in Indonesia?