Economics Chapter 2 Multiple Choice Economists Generally Believe That C

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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…

Points: 0

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.

Points: 0

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?

Points: 0

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.

Points: 0

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.

Points: 0

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.

Points: 0

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.

Points: 0

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

Points: 0

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.

Points: 0

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.

Points: 0

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

Points: 0

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.

Points: 0

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…

Points: 0

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

Points: 0

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

Points: 0

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:

Points: 0

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

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 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