FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Specializationand Exchange

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?Country A has an absolute advantage at producing both avocados and t-shirts.Country B has a comparative advantage at producing t-shirts.Country B would benefit from trade, but Country A would not.

A) I only
B) III only
C) I and II only
D) II and III only

E) B) and C)
F) C) and D)

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Consider the production possibilities frontier displayed in the figure shown. The opportunity cost of one watermelon:

A) will decrease as more watermelons are produced.
B) is constant.
C) will increase as more watermelons are produced.
D) is zero at point C.

E) All of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

Consider the production possibilities frontier in the figure shown. The opportunity cost of cars between points B and C is:

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. The opportunity cost of one pair of gloves is:

Consider the production possibilities frontier displayed in the figure shown. Which of the following combinations could be produced?

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Country B has a comparative advantage at producing:

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Which of the following is a bundle of goods that Country A could not make?

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost of one pair of shoes for the United States is _____, while the opportunity cost of one pair of shoes for Canada is ______.

Suppose that only two goods are produced in an economy. If a country possesses a comparative advantage at producing one good, then it:

Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato is:

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. Which of the following statements is true?

Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. If Jerry decides to specialize in building tables, what are the limits to his terms of trade?

The production possibilities frontier:

Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The workers in Country A should specialize in producing _____ because it has a(n) _____ at producing that good.

The improvement in outcomes that occurs when specialized producers exchange goods and services is called:

Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Suppose that a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has an absolute advantage at:

When a country is producing goods and services efficiently it:

Suppose that a worker in Country A can make either 30 cars or 15 computers each year. Country A has 1,000 workers. Suppose a worker in Country B can make either 60 cars or 20 computers each year. Country B has 600 workers. _____ has the comparative advantage at producing cars, and _____ has a comparative advantage at producing computers.

People will choose to specialize and trade if they can acquire the goods they want:

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. If Country A were to divide its resources equally, it could produce: