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 China's opportunity cost of producing one kilo of wheat?

Table 2-5 Table 2-5 shows the output per month of two people,Fred and Barney.They can either devote their time to making pogo sticks or making unicycles. -Refer to Table 2-5.What is Fred's opportunity cost of making a unicycle?

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.A combination of 5 pillows and 21 blankets would appear

Table 2-4 Table 2-4 shows the output per week of two jewelers,Serena and Haley.They can either devote their time to making bracelets or making necklaces. -Refer to Table 2-4.What is Serena's opportunity cost of making a bracelet?

Any output combination outside a production possibility frontier is associated with unused or underutilised resources.

Figure 2-7 Figure 2-7 shows the production possibility frontiers for Pakistan and Indonesia.Each country produces two goods,cotton and cashews. -Refer to Figure 2-7.What is the opportunity cost of producing 1 bolt of cotton in Pakistan?

A successful market economy requires

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

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?

If a brewery wants to raise funds to purchase a new fermenting vat,it does so in the

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

Table 2-5 Table 2-5 shows the output per month of two people,Fred and Barney.They can either devote their time to making pogo sticks or making unicycles. -Refer to Table 2-5.What is Barney's opportunity cost of making a pogo stick?