Exam 2: Choices and Trade - Offs in the Market

-Refer to Figure 2-7. Which country has a comparative advantage in the production of cotton?

-Refer to Figure 2-3. Consider the following movements: a. from point V to point W B. from point W to point Y C. from point Y to point Z Which of the movements listed above represents economic growth?

-Refer to Figure 2-3. A movement from ________ is the result of negative technological change in plastic production.

-Refer to Table 2-7. Which of the following statements is true?

If opportunity costs are constant, the production possibility frontier would be graphed as

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

If a nation changes its laws to more actively enforce intellectual property rights, all of the following will most likely take place except

The production possibility frontier shows the ________ combinations of two products that may be produced in a particular time period with available resources.

Suppose there is no unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?

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

-Refer to Table 2-5. Which of the following statements is true?

-Refer to Table 2-8. If the two countries specialise and trade, who should export motorcycles?

-Refer to Figure 2-3. Consider the following events: a. a decrease in the unemployment rate B. an increase in a nation's money supply C. an influx of immigrant workers Which of the events listed above could cause a movement from X to Z?

Stricter laws and regulations to protect intellectual property rights

-Refer to Table 2-5. What is Barney's opportunity cost of making a unicycle?

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

-Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. Tomaso faces ________ opportunity costs in the production of pizzas and calzones.

An increase in the unemployment rate may be represented as a movement from a point on the production possibility frontier to a different point on the frontier.

What is meant by the term 'free market'?

The natural resources used in production are made available in the