eco chapter 2 quiz

Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables. Refer to Figure 2-2. Suppose Mendonca is currently producing 60 pounds of vegetables per period. How much meat is it also producing, assuming that resources are fully utilized?

75 pounds of meat

Figure 2-7 shows the production possibilities 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 Indonesia?

2 2/3 bolts of cotton

Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables. Refer to Figure 2-2. What is the opportunity cost of one pound of vegetables?

3/4 pound of meat

Figure 2-7 shows the production possibilities 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?

3/8 pounds of cashews

Table 2-3 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-3. If the two countries specialize and trade, who should export wheat?

China

Table 2-2 Table 2-2 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. Refer to Table 2-2. Which of the following statements istrue?

George has an absolute advantage in both tasks.

Table 2-3 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-3. Does either China or South Korea have an absolute advantage and if so, in what product?

South Korea has an absolute advantage in both products.

An example of a factor of production is

a worker hired by an auto manufacturer.

The production possibilities frontier model assumes all of the following except

any level of the two products that the economy produces is currently possible.

You have an absolute advantage whenever you

can produce more of something than others with the same resources.

Table 2-3 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.Refer to Table 2-3. South Korea has a comparative advantage in the production of

digital cameras.

A worker is hired in a

factor market.

Table 2-2 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. Refer to Table 2-2. What is George's opportunity cost of mowing a lawn?

half a garden cultivated

Figure 2-1 Refer to Figure 2-1. Point A is

inefficient in that not all resources are being used.

The slope of a production possibilities frontier

measures the opportunity cost of producing one more unit of a good.

Table 2-2 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. Refer to Table 2-2. What is Jack's opportunity cost of cultivating a garden?

one and a half lawns mowed

Specializing 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

produce a combination of goods that lies outside its own production possibilities frontier.

Households

purchase final goods and services in the product market.

Households

sell resources in the factor market.

Scarcity

stems from the incompatibility between limited resources and unlimited wants.

Figure 2-1 Refer to Figure 2-1. Point B is

technically efficient.

Comparative advantage means

the ability to produce a good or service at a lower opportunity cost than any other producer.

The principle of opportunity cost is that

the economic cost of using a factor of production is the alternative use of that factor that is given up.

The production possibilities frontier shows

the maximum attainable combinations of two products that may be produced in a particular time period with available resources.

Increasing marginal opportunity cost implies that

the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.

Table 2-2 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. Refer to Table 2-2. What is George's opportunity cost of cultivating a garden?

two lawns mowed

Table 2-2 Table 2-2 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. Refer to Table 2-2. What is Jack's opportunity cost of mowing a lawn?

two-thirds of a garden cultivated

Figure 2-1 Refer to Figure 2-1. Point C is

unattainable with current resources.

The resource income earned by those who supply labor services is called

wages and salaries.

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

zero