ECON 110 HW 2
In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it can still benefit by trading with the other country
True
an example of a factor of production is
a worker hired by an auto manufacturer.
specializing in production of a good or service in which one has a comparative advantage enables a country to do which of the following
consumes a combination of goods that lies outside its own production possibilities frontier
in the circular flow model diagram, economic agent m represents
house holds
Which of the following statements is true
mickey has a comparative advantage making hats and mini has a comparative advantage in making umbrellas
the ability to exercise ones own resources within the confines of law refers to
ones property right
_________ is (are) attainable with current resources
point c
_____ shows that if all resources are fully and efficiently utilized more of one good can be produced only by producing less of another good
production possibilities frontier model
if you can produce more of something than others with the same resources, you have
an absolute advantage
an outward shift of a nations production possibility frontier can occur due
an increase in the labor force
all of the following are examples of spending on goods and services in the circular flow model except
chaitnaya buys a new spa pedicure chair for her expanding nail salon business
the circular flow model demonstrates
the roles played by house holds and firms in the market system
if the economy is currently producing at point x, what is the oppurtunity cost of moving to point w?
3 million tons of steel
if vidalia chooses to produce 80 dozen roses how many orchids can it produce to maximize production
48 dozen orchids
In economics, the term "free market" refers to a market where no sales tax is imposed on products sold
False
In the circular flow model households supply resources such as labor services in the product market
False
Which country has a comparative advantage in the production of coconuts
Guatemala
Consider a country that produces only two goods: pineapples and tractors. Suppose it is possible for this country to increase its production of pineapples without producing fewer tractors. In this case, its current output combination is inefficient.
True
what is the opportunity cost of one dozen roses
.4 roses
Published in 1776, ________ was written by Adam Smith.
An inquiry in the nature and causes of wealth of nations