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Figure: Consumer and Capital Goods
Reference: Ref 2-17
(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital
Goods. The movement from curve 1 to curve 2 indicates:
130. Multiple Choice: Figure: Consumer and Capital Goods Re...
Question
Points: 0
Figure: Consumer and Capital Goods
Reference: Ref 2-17
(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital
Goods. Technological improvements will likely:
131. Multiple Choice: Abe starts exercising regularly, and ...
Question Abe starts exercising regularly, and after a few months he can do twice as much of
everything—in a single day Abe can now make 10 hamburgers or 8 milkshakes
rather than the 5 hamburgers and 4 milkshakes he made in the past. We now
know that Abe's production possibility frontier:
132. Multiple Choice: When a nation experiences economic gr...
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Question When a nation experiences economic growth:
133. Multiple Choice: As long as people have different ____...
Question As long as people have different ________, everyone has a comparative advantage
in something.
Answer direct costs
134. Multiple Choice: Because of trade, a country may:
Question Because of trade, a country may:
135. Multiple Choice: An economy is said to have a comparat...
Question An economy is said to have a comparative advantage if it:
Answer can produce more of all goods than another economy.
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136. Multiple Choice: The economy that has the lowest cost ...
Question The economy that has the lowest cost for producing a particular good is said to
have:
Answer a technological advantage.
137. Multiple Choice: An economy is said to have a comparat...
Question An economy is said to have a comparative advantage in the production of a good if
it can produce that good:
Answer with more resources than another economy.
138. Multiple Choice: Reference: Ref 2-18 (Table: Fish a...
Question
Reference: Ref 2-18
(Table: Fish and Coconut Production Possibilities) Look at the table Fish and
Coconut Production Possibilities. The table shows the maximum amount of fish
and coconuts that Tom and Hank can produce if they produce only one good. Tom
produces and consumes 9 fish and 2 coconuts, and Hank produces and consumes
3 fish and 2 coconuts. Now they decide to engage in trade. Which of the following
statements is incorrect?
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139. Multiple Choice: In one hour, the United States can pr...
Question In one hour, the United States can produce 25 tons of steel or 250 automobiles. In
one hour, Japan can produce 30 tons of steel or 275 automobiles. This information
implies that:
Answer Japan has a comparative advantage in the production of automobiles.
140. Multiple Choice: Reference: Ref 2-19 (Table: Coffee a...
Question
Reference: Ref 2-19
(Table: Coffee and Salmon Production Possibilities) Look at the table Coffee and
Salmon Production Possibilities. The table shows the maximum amounts of coffee
and salmon that Brazil and Alaska can produce if they just produce one good. The
opportunity cost of producing 1 unit of coffee for Brazil is:
Answer 2 salmon.
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141. Multiple Choice: Reference: Ref 2-19 (Table: Coffee a...
Question
Reference: Ref 2-19
(Table: Coffee and Salmon Production Possibilities) Look at the table Coffee and
Salmon Production Possibilities. The table shows the maximum amounts of coffee
and salmon that Brazil and Alaska can produce if they just produce one good. The
opportunity cost of producing 1 unit of salmon for Alaska is:
Answer 2 coffees.
142. Multiple Choice: Free trade between countries:
Question Free trade between countries:
Answer should be based on absolute advantage.
143. Multiple Choice: If they spend all night writing compu...
Question If they spend all night writing computer programs, Laurence can write 10 programs
while Carrie Anne can write 5. If they spend all night making sunglasses, Laurence
can make 6 while Carrie Anne can make 4. Given this information and supposing
Laurence and Carrie Anne have constant opportunity costs, we know that:
Answer Laurence has an absolute advantage in programs but not in sunglasses.
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144. Multiple Choice: If they spend all night writing compu...
Question If they spend all night writing computer programs, Laurence can write 10 programs
while Carrie Anne can write 5. If they spend all night making sunglasses, Laurence
can make 6 while Carrie Anne can make 4. We know that:
145. Multiple Choice: If they spend all night writing compu...
Question If they spend all night writing computer programs, Laurence can write 10 programs
while Carrie Anne can write 5. If they spend all night making sunglasses, Laurence
can make 6 while Carrie Anne can make 4. We know that:
146. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is true?
Answer Some very talented people have a comparative advantage in everything they do.
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147. Multiple Choice: In a single day, Sarah can produce 10...
Question In a single day, Sarah can produce 10 hamburgers while Abe can produce 5
hamburgers. We then know that:
Answer Sarah has a comparative advantage in making hamburgers.
148. Multiple Choice: If they produce only hamburgers, in a...
Question If they produce only hamburgers, in a single day Sarah can produce 10 hamburgers
while Abe can produce 5 hamburgers. If they make milkshakes only, in a single
day Sarah can produce 10 milkshakes while Abe can produce 4 milkshakes. We
know that:
Answer Sarah has an absolute advantage and a comparative advantage in making
hamburgers.
149. Multiple Choice: Roommates Sarah and Zoe are hosting a...
Question Roommates Sarah and Zoe are hosting a Halloween party and have to make food
for their guests and costumes for themselves. To finish both tasks as quickly as
possible, Sarah and Zoe know that each of them should focus on just one task, but
they don't know who should do what. To decide which roommate should do the
cooking, Sarah and Zoe should determine which roommate:
Answer has the absolute advantage in cooking.
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150. Multiple Choice: Economists generally believe that a c...
Question Economists generally believe that a country should specialize in the production of
a good or service if:
Answer the production possibility frontier is larger than that of any other country.
151. Multiple Choice: Reference: Ref 2-20 (Table: Coffee a...
Question
Reference: Ref 2-20
(Table: Coffee and Salmon Production Possibilities II) Look at the table Coffee and
Salmon Production Possibilities II. This table shows the maximum amounts of
coffee and salmon that Brazil and Alaska can produce if they just produce one
good. Brazil has an absolute advantage in producing:
152. Multiple Choice: Reference: Ref 2-20 (Table: Coffee a...
Question
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Reference: Ref 2-20
(Table: Coffee and Salmon Production Possibilities II) Look at the table Coffee and
Salmon Production Possibilities II. This table shows the maximum amounts of
coffee and salmon that Brazil and Alaska can produce if they just produce one
good. Alaska has an absolute advantage in producing:
Answer coffee only.
153. Multiple Choice: Reference: Ref 2-20 (Table: Coffee a...
Question
Reference: Ref 2-20
(Table: Coffee and Salmon Production Possibilities II) Look at the table Coffee and
Salmon Production Possibilities II. This table shows the maximum amounts of
coffee and salmon that Brazil and Alaska can produce if they just produce one
good. Brazil has a comparative advantage in producing:
154. Multiple Choice: An economy is said to have a comparat...
Question An economy is said to have a comparative advantage in the production of one good
if it:
Answer can produce more of all goods than another economy.
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155. Multiple Choice: An economy that has the lowest opport...
Question An economy that has the lowest opportunity cost for producing a particular good is
said to have:
Answer an absolute advantage.
156. Multiple Choice: The concept of comparative advantage ...
Question The concept of comparative advantage is based upon:
Answer absolute labor productivity.
157. Multiple Choice: An economy is said to have a comparat...
Question An economy is said to have a comparative advantage in the production of a good if
it can produce that good:
Answer with more resources than another economy.
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158. Multiple Choice: If the opportunity cost of manufactur...
Question If the opportunity cost of manufacturing machinery is lower in the United States
than in Britain and the opportunity cost of manufacturing sweaters is higher in the
United States than in Britain, then the United States will:
Answer export both sweaters and machinery to Britain.
159. Multiple Choice: If the opportunity cost of manufactur...
Question If the opportunity cost of manufacturing machinery is higher in the United States
than in Britain and the opportunity cost of manufacturing sweaters is lower in the
United States than in Britain, then the United States will:
Answer export both sweaters and machinery to Britain.
160. Multiple Choice: Trade can be beneficial to an economy...
Question Trade can be beneficial to an economy because:
Answer it results in a more efficient use of the combined resources of some of the
trading countries, even though it reduces efficiency in others.
161. Multiple Choice: If Brazil gives up 3 automobiles for ...
Question If Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives
up 7 automobiles for each ton of coffee it produces, then:
Answer
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Brazil has a comparative advantage in automobile production and should
specialize in coffee.
162. Multiple Choice: If countries engage in international ...
Question If countries engage in international trade:
Answer they give up the ability to specialize in production.
163. Multiple Choice: Reference: Ref 2-21 (Table: Comparat...
Question
Reference: Ref 2-21
(Table: Comparative Advantage I) Look at the table Comparative Advantage I.
Sweden has an absolute advantage in producing:
Answer cell phones only.
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164. Multiple Choice: Reference: Ref 2-21 (Table: Comparat...
Question
Reference: Ref 2-21
(Table: Comparative Advantage I) Look at the table Comparative Advantage I.
Finland has an absolute advantage in producing:
Answer cell phones only.
165. Multiple Choice: Reference: Ref 2-21 (Table: Comparat...
Question
Reference: Ref 2-21
(Table: Comparative Advantage I) Look at the table Comparative Advantage I.
Sweden has a comparative advantage in producing:
Answer cell phones only.
166. Multiple Choice: Reference: Ref 2-21 (Table: Comparat...
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Question
Reference: Ref 2-21
(Table: Comparative Advantage I) Look at the table Comparative Advantage I.
Finland has a comparative advantage in producing:
167. Multiple Choice: Reference: Ref 2-21 (Table: Comparat...
Question
Reference: Ref 2-21
(Table: Comparative Advantage I) Look at the table Comparative Advantage I. The
opportunity cost of producing 1 box of cell phones for Sweden is:
168. Multiple Choice: Reference: Ref 2-21 (Table: Comparat...
Question
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Reference: Ref 2-21
(Table: Comparative Advantage I) Look at the table Comparative Advantage I. The
opportunity cost of producing 1 box of cell phones for Finland is:
Answer 10 boxes of herring.
169. Multiple Choice: Reference: Ref 2-21 (Table: Comparat...
Question
Reference: Ref 2-21
(Table: Comparative Advantage I) Look at the table Comparative Advantage I. The
opportunity cost of producing 1 box of herring for Sweden is:
Answer 10 boxes of cell phones.
170. Multiple Choice: Reference: Ref 2-21 (Table: Comparat...
Question
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Reference: Ref 2-21
(Table: Comparative Advantage I) Look at the table Comparative Advantage I. The
opportunity cost of producing 1 box of herring for Finland is:
Answer 10 boxes of cell phones.
171. Multiple Choice: Figure: Comparative AdvantageEastland...
Question Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of
oranges, and this figure shows each nation's production possibility frontier for the
two goods.
Reference: Ref 2-22
(Figure: Comparative Advantage) Look at the figure Comparative Advantage.
Eastland has an absolute advantage in producing:
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both oranges and peaches.
neither oranges nor peaches.
172. Multiple Choice: Figure: Comparative AdvantageEastland...
Question Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of
oranges, and this figure shows each nation's production possibility frontier for the
two goods.
Reference: Ref 2-22
(Figure: Comparative Advantage) Look at the figure Comparative Advantage.
Westland has an absolute advantage in producing:
Answer oranges only.
173. Multiple Choice: Figure: Comparative AdvantageEastland...
Question
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Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of
oranges, and this figure shows each nation's production possibility frontier for the
two goods.
Reference: Ref 2-22
(Figure: Comparative Advantage) Look at the figure Comparative Advantage. The
opportunity cost of producing 1 box of oranges for Eastland is:
174. Multiple Choice: Figure: Comparative AdvantageEastland...
Question
Points: 0
Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of
oranges, and this figure shows each nation's production possibility frontier for the
two goods.
Reference: Ref 2-22
(Figure: Comparative Advantage) Look at the figure Comparative Advantage. The
opportunity cost of producing 1 box of oranges for Westland is:
Answer 1 box of peaches.
175. Multiple Choice: Figure: Comparative AdvantageEastland...
Question
Points: 0
