Exam 2: Choices and Trade-Offs in the Market

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 Ireland's opportunity cost of producing one motorcycle?

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

A decrease in the unemployment rate may be represented as a movement from a point on the production possibility frontier to a point outside the frontier.

If society decides it wants more of one good and all resources are fully utilised,then

What is economic growth?

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.Which of the following statements is true?

What is a production possibility frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?

For each bottle of wine that Italy produces,it gives up the opportunity to make 10 pounds of cheese.France can produce 1 bottle of wine for every 25 pounds of cheese it produces.Which of the following is true about the comparative advantage between the two countries?

If a country produces only two goods,then it is not possible to have an absolute advantage in the production of both those goods.

An example of a factor of production is

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.Scotland has a comparative advantage in the production of

What is the difference between product markets and factor markets?

Figure 2-6 Figure 2-6 above shows the production possibility frontier for Vidalia,a nation that produces two goods,roses and orchids. -Refer to Figure 2-6.Suppose Vidalia is currently producing 60 dozen orchids per period.How many roses is it also producing,assuming that resources are fully utilised?

Table 2-3 Production Choices for Dina's Cafe -Refer to Table 2-3.Dina faces ________ opportunity costs in the production of sliders and hot wings.

What is meant by the term 'free market'?

Comparative advantage means the ability to produce a good or service

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.What is Horace's opportunity cost of bathing a cat?

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 pound of cashews in Pakistan?

Which of the following is not a factor of production?

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.If the two countries specialise and trade,who should export digital cameras?