Chapter 2 Quiz

Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. Refer to Table 3-25. The opportunity cost of 1 toaster for Miguel is

1/2 mixers

The opportunity cost of moving from point J to point L is

2 cups of coffee.

Azerbaijan's opportunity cost of one bolt is

4 nails and Uzbekistan's opportunity cost of one bolt is 2 nails.

Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate... Refer to Table 3-26. Japan's opportunity cost of one airplane is..

5 cars and Korea's opportunity cost of one airplane is 3 cars.

Which of the following is an example of a normative, as opposed to positive, statement?

Universal health care would be good for U.S. citizens.

Positive statements are

claims about how the world is

Serena Williams should probably not mow her own lawn because

her opportunity cost of mowing her lawn is higher than the cost of paying someone to mow it for her

France has an absolute advantage in the production of

neither wine nor cheese.

Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on the United States' production possibilities frontier?

(200 airplanes, 12,500 cars) and (150 airplanes, 15,000 cars)

Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. For many years the two countries traded, each completely specializing according to their respective comparative advantages.

20 units of corn and 20 units of wheat

What is Antigua's opportunity cost of one towel?

3/5 umbrellas

What is the opportunity cost to Footville of increasing the production of shoes from 400 to 600?

300 socks

At which of the following prices would both Hosne and Merve gain from trade with each other?

5 wallets for 3.75 purses

Suppose Daisy is willing to trade 3/4 tart to Maxine for each pie that Maxine makes and sends to Daisy. Which of the following combinations of pies and tarts could Maxine not then consume, assuming Maxine specializes in making pies and Daisy specializes in making tarts?

6 pies and 5 tarts

It is possible for this economy to produce

90 gadgets and 30 widgets.

Which of the following statements about economic models is correct?

Because economic models omit many details, they allow us to see what is truly important.

It is not possible for this economy to produce at point

C.

In the circular-flow diagram, which of the following items does not flow from firms to households

Capital

The simple circular-flow diagram is a model that includes only some key players in the real economy. Which of the following key players are omitted from the simple circular-flow model?

Government

Refer to Figure 2-7. Efficient production is represented by which point(s)? Look for what points land on the curve

L.M

Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier Refer to Figure 3-16. Hosne should specialize in the production of

Purses

The gains from trade are..

a result of more efficient resource allocation than would be observed in the absence of trade.

Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate. Brad should specialize in the production of...

beef and Theresa should specialize in the production of wheat.

Alice and Betty's Production Possibilities in one 8-hour day. Refer to Figure 3-10. Both Alice and Betty

face a constant trade-off between producing pitchers of lemonade and pizzas

A statement describing how the world should be

is a normative statement

Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies. Refer to Table 3-29. Juanita has an absolute advantage in

testing cellular phones and a comparative advantage in testing cellular phones

In the circular-flow diagram, in the markets for

the factors of production, households are sellers and firms are buyers