Given the table shown above, which of the following statements accurately describes the production possibilities for Toyland?

Large or persistent inflation is almost always caused by
government printing too much money 

The business cycle is the
irregular fluctuations in economic activity

Which of the following statements about economic models is correct?
models assume away irrelevant details

Economists make assumptions
to make the world easier to understand

Just like models constructed in other areas of science, economic models incorporate assumption that may contradict reality 

The circular-flow diagram is a
visual model of how the economy is organized 

In a circular flow diagram, if Michelle is a worker who delivers flowers, she participates
in the market for factors of production exchanging labor for income 

Production possibilities frontiers are usually bowed outward. This is because recourses are specialized; that is some are better at producing particular good rather than other goods 

The two loops in the circular-flow diagram represent the flow of
inputs and outputs and the flow of dollars 

The production possibilities frontier is a
graph that shows the various combinations of output the economy can possibly produce given the available resources and technology

Given the table shown above, which of the following statements accurately describes the production possibilities for Toyland?
the opportunity cost of an additional 100 dolls increases as more dolls are produced 

If a nation has an absolute advantage in the production of a good,
it can produce that good using fewer resources then its trading partner. 

According to the principle of comparative advantage,
countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners