Economics Chapter 2 The opportunity cost of producing 1 box

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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 peaches for Eastland is:

176. 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 peaches for Westland is:

177. 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.

Eastland has a comparative advantage in producing:

178. 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.

Westland has a comparative advantage in producing:

179. Multiple Choice: Which of the following statements is ...

Question Which of the following statements is true?

Answer Very talented people may have a comparative advantage in everything they do.

180. Multiple Choice: In a single day, George can bake 10 c…

Question In a single day, George can bake 10 cakes and Greta can bake 5 cakes. We know

that:

Answer George has a comparative advantage in baking cakes.

Points: 0

181. Multiple Choice: If they bake only cakes, in a single ...

Question If they bake only cakes, in a single day George can bake 10 cakes and Greta can

bake 5 cakes. If they make only pies, in a single day George can bake 10 pies

while Greta can bake 4 pies. We know that:

Answer George has an absolute advantage and a comparative advantage in making

cakes.

182. Multiple Choice: Greta starts using a new baking techn...

Question Greta starts using a new baking technique and she can now do twice as much of

everything—in a single day Greta can now make 10 cakes or 8 pies, rather than

the 5 cakes and 4 pies she could previously bake. We now know that Greta’s

production possibility frontier:

183. Multiple Choice: Coworkers Yvonne and Rodney are tryin...

Question Coworkers Yvonne and Rodney are trying to finish cleaning up the store by

washing dishes and sweeping the floors. To finish both tasks as quickly as

possible, they know that each of them should focus on just one task, but they don’t

know who should do what. To decide which coworker should wash dishes, Yvonne

and Rodney should determine which one:

Points: 0

184. Multiple Choice: To achieve the gains from trade, each...

Question To achieve the gains from trade, each nation should specialize in the production of

a good or service if:

Answer its production possibility frontier is larger than that of any other country.

185. Multiple Choice: Dr. Colgate is a dentist who employs ...

Question Dr. Colgate is a dentist who employs an assistant, Ms. Crest. If Dr. Colgate

worked all day at the front desk, she could answer 40 phone calls. If she worked all

day with patients, she could clean the teeth of 40 patients. If Ms. Crest worked all

day at the front desk, she could answer 60 phone calls. If she worked all day with

patients, she could clean the teeth of 20 patients. Which of the following is true?

Answer Dr. Colgate has an absolute advantage in answering phones.

186. Multiple Choice: Reference: Ref 2-23 (Table: Wheat an...

Question

Points: 0

Reference: Ref 2-23

(Table: Wheat and Aluminum) Look at the table Wheat and Aluminum. The United

States and Germany can produce both wheat and aluminum. The table shows, in

tonnage, the maximum annual output combinations of wheat and aluminum that

can be produced. Which of the following choices would represent a possible trade

based upon specialization and comparative advantage?

Answer Germany would trade 2 tons of wheat to the United States for 1 ton of

aluminum.

187. Multiple Choice: Reference: Ref 2-23 (Table: Wheat an...

Question

Reference: Ref 2-23

(Table: Wheat and Aluminum) Look at the table Wheat and Aluminum. The United

States and Germany can produce both wheat and aluminum. The table shows the

maximum annual output combinations of wheat and aluminum that can be

produced. Based on the table:

Answer

Points: 0

188. Multiple Choice: In one day, Kessy can bake 10 cookies...

Question In one day, Kessy can bake 10 cookies or mix 15 glasses of lemonade. His friend,

Ava, can make 10 cookies or 10 glasses of lemonade. His other friend, Ian, can

make 10 cookies or 20 glasses of lemonade. Who has the lowest opportunity cost

in cookie production?

Answer Kessy

189. Multiple Choice: Because Casey can type reports faster...

Question Because Casey can type reports faster and more accurately than Ahmet, Casey

has ________ in typing reports.

Answer a comparative advantage

190. Multiple Choice: Mark and Julie are going to sell brow…

Question Mark and Julie are going to sell brownies and cookies for their third annual

fundraiser bake sale. In one day, Mark can make 40 brownies or 20 cookies, and

Julie can make 15 brownies or 15 cookies. Based on this information, ________

has the comparative advantage in making brownies and ________ has the

comparative advantage in making cookies.

Points: 0

191. Multiple Choice: Mark and Julie are going to sell brow…

Question Mark and Julie are going to sell brownies and cookies for their third annual

fundraiser bake sale. In one day, Mark can make 40 brownies or 20 cookies, and

Julie can make 15 brownies or 15 cookies. What is Mark‘s opportunity cost to

produce one brownie?

Answer 1 cookie

192. Multiple Choice: Mark and Julie are going to sell brow…

Question Mark and Julie are going to sell brownies and cookies for their third annual

fundraiser bake sale. In one day, Mark can make 40 brownies or 20 cookies, and

Julie can make 15 brownies or 15 cookies. With specialization, how many

brownies and cookies will be made in one day for the bake sale?

Answer 15 brownies and 20 cookies

193. Multiple Choice: Mark and Julie are going to sell brow…

Question Mark and Julie are going to sell brownies and cookies for their third annual

fundraiser bake sale. In one day, Mark can make 40 brownies or 20 cookies, and

Julie can make 15 brownies or 15 cookies. Based on this information, ________

has the absolute advantage in making brownies and ________ has the absolute

advantage in making cookies.

Answer Mark; Julie

Points: 0

194. Multiple Choice: Reference: Ref 2-24 (Table: Bongos a...

Question

Reference: Ref 2-24

(Table: Bongos and Frisbees) Look at the table Bongos and Frisbees. Bill and

Mickey make bongos and Frisbees. Who has the comparative advantage in

producing Frisbees?

Answer Bill

195. Multiple Choice: Reference: Ref 2-24 (Table: Bongos a...

Question

Reference: Ref 2-24

(Table: Bongos and Frisbees) Look at the table Bongos and Frisbees. Bill and

Mickey make bongos and Frisbees. Who should specialize in the production of

bongos?

Points: 0

196. Multiple Choice: If the opportunity cost of manufactur…

Question If the opportunity cost of manufacturing automobiles is lower in the United States

than in Britain and the opportunity cost of manufacturing airplanes is higher in the

United States than in Britain, then the United States will:

Answer export both airplanes and automobiles to Britain.

197. Multiple Choice: If the opportunity cost of manufactur…

Question If the opportunity cost of manufacturing automobiles is higher in the United States

than in Britain and the opportunity cost of manufacturing airplanes is lower in the

United States than in Britain, then the United States will:

Answer export both airplanes and automobiles to Britain.

198. Multiple Choice: Assume that Colombia gives up three m…

Question Assume that Colombia gives up three motorcycles for each ton of coffee it

produces, while Bolivia gives up seven motorcycles for each ton of coffee it

produces.

Answer Colombia has a comparative advantage in motorcycle production and should

specialize in coffee.

Points: 0

199. Multiple Choice: Economists are generally in support of:

Question Economists are generally in support of:

Answer government restrictions on trade.

200. Multiple Choice: Trade takes the form of ________ when…

Question Trade takes the form of ________ when people directly exchange goods that they

have for goods they want.

Answer exploitation

201. Multiple Choice: The simplest circular-flow model show…

Question The simplest circular–flow model shows the interaction between households and

firms. In this model:

Answer only barter transactions take place.

202. Multiple Choice: A high-school graduate who gets a col...

Points: 0

Question A high-school graduate who gets a college degree is adding to the economy‘s

stock of:

Answer labor.

203. Multiple Choice: Figure: Production Possibilities and ...

Question Figure: Production Possibilities and Circular-Flow Diagram

Reference: Ref 2-25

(Figure: Production Possibilities and Circular-Flow Diagram) Look at the figure

Production Possibilities and Circular-Flow Diagram. Assume the two figures

represent the same economy. Suppose that in the circular–flow diagram there is a

significant decrease in the amount of labor flowing to the firms that produce

coconuts. If all other variables remain unchanged, this adjustment in the economy

would be best represented in the production possibilities figure by a move from

point A toward:

Points: 0

Answer point A (no movement would occur).

204. Multiple Choice: Figure: Production Possibilities and ...

Question Figure: Production Possibilities and Circular-Flow Diagram

Reference: Ref 2-25

(Figure: Production Possibilities and Circular-Flow Diagram) Look at the figure

Production Possibilities and Circular-Flow Diagram. Assume the two figures

represent the same economy. Suppose that in the circular–flow diagram there is a

significant increase in the amount of capital that flows to the firms that produce

fish. Assume that there is a corresponding decrease in the amount of capital that

flows to the firms that produce coconuts. This adjustment in the economy would be

best represented in the production possibilities figure by a move from point A

toward:

Answer point A (no movement would occur).

Points: 0

205. Multiple Choice: Figure: Production Possibilities and ...

Question Figure: Production Possibilities and Circular-Flow Diagram

Reference: Ref 2-25

(Figure: Production Possibilities and Circular-Flow Diagram) Look at the figure

Production Possibilities and Circular-Flow Diagram. Assume the two figures

represent the same economy. Suppose that in the circular–flow diagram there is a

significant increase in the amount of human capital that flows to both types of firms

(coconut producers and fish producers). If all other variables remain unchanged,

then the adjustment in this economy would be best represented in the production

possibilities figure by a movement from point A toward:

Answer point A (no movement would occur).

Points: 0

206. Multiple Choice: Figure: Production Possibilities and ...

Question Figure: Production Possibilities and Circular-Flow Diagram

Reference: Ref 2-25

(Figure: Production Possibilities and Circular-Flow Diagram) Look at the figure

Production Possibilities and Circular-Flow Diagram. Assume the two figures

represent the same economy. Suppose that in the circular–flow diagram a

significant increase in productivity occurs inside most of the firms. This results in a

significant increase in the output of both coconuts and fish. If all other variables

remain unchanged, then the adjustment in this economy would be best

represented in the production possibilities figure by a movement from point A

toward:

Answer point A (no movement would occur).

Points: 0

207. Multiple Choice: If LeRoyce trades two cookies for one…

Question If LeRoyce trades two cookies for one of Amir’s brownies, we say that they are

engaging in:

Answer exploitation.

208. Multiple Choice: Which of the following is false about...

Question Which of the following is false about the circular–flow diagram?

Answer Households are the primary demanders of goods and services.

209. Multiple Choice: Which of the following is not a facto...

Question Which of the following is not a factor of production?

Answer labor

210. Multiple Choice: The circular-flow diagram illustrates...

Question The circular–flow diagram illustrates how households ________ goods and services

and ________ factors of production.

Points: 0

211. Multiple Choice: The circular-flow diagram illustrates...

Question The circular–flow diagram illustrates how firms ________ goods and services and

________ factors of production.

Answer buy; sell

212. Multiple Choice: In the simplest circular-flow model, ...

Question In the simplest circular–flow model, households supply ________ and demand

________.

Answer capital; barter

213. Multiple Choice: Which are the two markets represented…

Question Which are the two markets represented in the circular-flow diagram?

Points: 0

214. Multiple Choice: The two flows represented in the circ...

Question The two flows represented in the circular–flow diagram are:

Answer the flow of goods and services and the flow of factors.

215. Multiple Choice: Which of the following two statements…

Question Which of the following two statements is a positive statement? Which is a

normative statement?

X. The federal minimum wage is increasing to $7.50 an hour.

Y. The minimum wage should be high enough that families will not live in poverty.

216. Multiple Choice: Which of the following is a normative…

Question Which of the following is a normative statement?

Answer Women‘s labor force participation rate has increased during the past 100

years.

217. Multiple Choice: Which of the following is an example ...

Question Which of the following is an example of normative economics?

Points: 0