trade offs, comparative advantage and the aftermath

Which of the following is not a factor of production?

$1,000 in cash

Refer to Figure 2-1. Point A is

inefficient in that not all resources are being used.

If the production possibilities frontier is ________, then opportunity costs are constant as more of one good is produced.

linear

The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products.

patents and copyrights

Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses?

25 silk leaves

A major factor contributing to the slow growth rate of less-developed economies is

the lack of well-defined and enforceable property rights.

An example of a factor of production for Dell is

a worker hired by Dell.

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.

Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey.

1.2 gallons of honey

A successful market economy requires

well-defined property rights and an independent court system to adjudicate disputes based on the law.

If opportunity costs are constant, the production possibilities frontier would be graphed as

a negatively sloped straight line.

When you purchase a new pair of jeans you do so in the

product market.

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.

A production possibilities frontier with a bowed-outward shape indicates

increasing opportunity costs as more and more of one good is produced.

The resource income earned by those who supply ________ is called wages.

labor

Pierre 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?

15 bow ties

Scarcity

scarcity

stems from the incompatibility between limited resources and unlimited wants.

The term "property rights" refers to

the ability to exercise control over one's own resources within the confines of the law.

If a commercial dairy farm wants to raise funds to purchase feeding troughs, it does so in the

factor market.