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Exam 2: Choices and Trade-Offs in the Market

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Question 91

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A production possibility frontier with a bowed outward shape indicates

A) the possibility of inefficient production.
B) constant opportunity costs as more and more of one good is produced.
C) increasing opportunity costs as more and more of one good is produced.
D) decreasing opportunity costs as more and more of one good is produced.

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Question 92

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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.

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Question 93

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

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?

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.

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

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?

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.China has a comparative advantage in the production of

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

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

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 2-2 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 production possibility frontier model shows that

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?

The production possibility frontier model assumes which of the following?

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

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?

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