Exam 2: Choices and Trade - Offs in the Market

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

Which of the following is not a factor of production?

-Refer to Table 2-4. What is Haley's opportunity cost of making a bracelet?

The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products.

Which of the following would shift a nation's production possibility frontier outward?

You have an absolute advantage whenever you

-Refer to Figure 2-6. Suppose Vidalia is currently producing 120 dozen roses per period. How many orchids is it also producing, assuming that resources are fully utilised?

Which of the following is a factor of production?

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

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

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

In a free market there are virtually no restrictions or, at best, few restrictions on how factors of production can be employed.

-Refer to Figure 2-6. What is the opportunity cost of 100 dozen roses?

Which of the following statements about an entrepreneur is false?

The payment received by suppliers of entrepreneurial skills is called wages.

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

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

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.

-Refer to Table 2-7. What is Tammi's opportunity cost of bathing a cat?

-Refer to Table 2-7. What is Horace's opportunity cost of bathing a cat?