Exam 2: Choices and Trade-Offs in the Market

A production possibility frontier with a bowed outward shape indicates

The production possibility frontier model shows that

An inward shift of a nation's production possibility frontier can occur due to

Economic decline (negative growth)is represented on a production possibility frontier model by the production possibility frontier

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.China has a comparative advantage in the production of

Is it possible for a firm to have an absolute advantage in producing something without having a comparative advantage? Why or why not?

In a two-good,two country world,if one country has an absolute advantage in the production of both goods,it must also have a comparative advantage in the production of both goods.

Without an increase in the supplies of factors of production,how can a nation achieve economic growth?

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 Tammi's opportunity cost of bathing a cat?

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.Billie faces ________ opportunity costs in the production of pillows and blankets.

The opportunity cost of taking a semester-long economics class is

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.South Korea has a comparative advantage in the production of

Peter can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties and 15 neckties.If he now produces 35 bow ties and 15 neckties,what is the opportunity cost of producing an additional 15 neckties?

The production possibility frontier model assumes which of the following?

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.

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 digital camera?

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

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 reduction in the patent protection period to no more than 2 years B.a war that destroys a substantial portion of a nation's capital stock C.the lack of a secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?

If Tanisha can audit more tax returns in one hour than Libby,then Tanisha has an absolute advantage in auditing tax returns.

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 South Korea's opportunity cost of producing one kilo of wheat?