econ chapter 2
(graph) Point A is
inefficient in that not all resources are being used
(graph) If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it produce to maximize production?
0 pounds of vegetables
(table) What is Haley's opportunity cost of making a bracelet?
1 1/3 necklaces
(graph) What is the opportunity cost of one pound of meat?
1 1/3 pound of vegetables
(graph) What is the opportunity cost of producing 1 pound of cashews in Pakistan?
1 3/5 bolts of cotton
(graph) What is the opportunity cost of producing 1 pound of cashews in Indonesia?
2 2/3 bolts of cotton
(table) What is Serena's opportunity cost of making a necklace?
2 necklaces
(graph) What is the opportunity cost of one pound of vegetables?
3/4 pound of meat
(graph) What is the opportunity cost of producing 1 bolt of cotton in Indonesia?
3/8 of a pound of cashews
(graph) What is the opportunity cost of producing 1 bolt of cotton in Pakistan?
5/8 of a pound of cashews
(graph) 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 pound of meat
(table) Which of the following statements is true?
Haley has a comparative advantage in making bracelets and Serena in making necklaces.
(table) Which of the following statements is true?
Haley has an absolute advantage in making bracelets and Serena in making necklaces.
(graph) Which country has a comparative advantage in the production of cotton?
Indonesia
(graph) If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?
Pakistan
(graph) Which country has a comparative advantage in the production of cashews?
Pakistan
(graph) Consider the following events: a. a decrease in the unemployment rate b. general technological advancement c. an increase in consumer wealth Which of the events listed above could cause a movement from V to W?
a, b, and c
(graph) Consider the following movements: a. from point V to point W b. from point W to point Y c. from point Y to point Z Which of the movements listed above represents economic growth?
b and c only
(graph) A movement from X to Y
could occur because of an influx of immigrant labor
If a country produces only two goods, then it is not possible to have an absolute advantage in the production of both goods. true/false
false
The basis for trade is absolute advantage, not comparative advantage. true/false
false
The production possibilities frontier model shows that
if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.
(graph) A movement from Y to Z
is the result of advancements in plastic production technology.
If the production possibilities frontier is ________, then opportunity costs are constant as more of one good is produced.
linear
The production possibilities frontier shows the ________ combinations of two products that can be produced in a particular time period with available resources.
maximum attainable
The slope of a production possibilities frontier
measures the opportunity cost of producing one more unit of a good
(graph) Point B is
technically efficient
The concept 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.
It is possible to have an absolute advantage in producing a good or service without having a comparative advantage. true/false
true
(graph) Point C is
unattainable with current resources