Exam 2: Choices and Trade-Offs in the Market

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 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 9 pillows and 21 blankets would appear

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

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.

Specialising in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except

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?

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 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?

Entrepreneurs bring together the factors of production to produce goods and services.

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.

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.an increase in the patent protection period to 30 years B.an increase of a nation's capital stock C.an improved property rights system Which of the events listed above could cause a movement from V to W?

Table 2-7 Table 2-7 shows the output per day of two pet groomers,Tammi and Horace.They can either devote their time to grooming dogs or bathing cats. -Refer to Table 2-7.Which of the following statements is true?

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?

As women's wages have risen relative to men's wages,the opportunity cost to women of doing housework has ________ than has the opportunity cost to men.

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.What is Scotland's opportunity cost of producing one motorcycle?

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 pogo stick?

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

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.Which of the following statements is true?

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 Indonesia?

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

All of the following are critical functions of the government in facilitating the operation of a market economy except