Deck 2: Comparative Advantage

Question 1

Refer to the table below. Julia's opportunity cost of making a pie is: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

A)60 cakes
B)6 cakes
C)6/5 of a cake
D)5/6 of a cake

Answer 1

5/6 of a cake

Question 2

If you have a comparative advantage in a particular task, then:

A)you are better at it than other people.
B)you give up more to accomplish that task than do others.
C)you give up less to accomplish that task than do others.
D)you have specialized in that task, while others have not.

Answer 2

you give up less to accomplish that task than do others.

Question 3

An individual has an absolute advantage in producing pizzas if that individual:

A)has a lower opportunity cost of producing pizzas than anyone else.
B)can produce more pizzas in a given amount of time than anyone else.
C)has a higher opportunity cost of producing pizzas than anyone else.
D)charges the lowest price for pizzas.

Answer 3

can produce more pizzas in a given amount of time than anyone else.

Question 4

Which of the following statements is true?

A)Absolute advantage implies comparative advantage.
B)Comparative advantage does not require absolute advantage.
C)Absolute advantage requires comparative advantage.
D)Comparative advantage requires absolute advantage.

Question 5

Larry has a comparative advantage over his classmates in writing term papers if he:

A)can write term papers faster than his classmates.
B)has an absolute advantage in writing term papers.
C)always earns an A on his term papers.
D)has a lower opportunity cost of writing term papers than his classmates.

Question 6

If a nation can produce a more computers per year than any other nation, that nation has a(n) ______ advantage in the production of computers.

A)comparative
B)absolute
C)relative
D)natural

Question 7

If Les can produce two pairs of pants per hour while Eva can produce one pair per hour, then it must be true that:

A)Les has a comparative advantage in producing pants.
B)Les has an absolute advantage in producing pants.
C)Eva has a comparative advantage in producing pants.
D)Les has both comparative and absolute advantage in producing pants.

Question 8

If Jane can produce 3 pairs of shoes per hour, while Bob can produce 2, then ______ has a(n) ______ advantage in producing shoes.

A)Jane; absolute
B)Jane; comparative
C)Bob; absolute
D)Bob; comparative

Question 9

Refer to the table below. Julia's opportunity cost of making a cake is: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

A)60 cakes
B)6 cakes
C)6/5 of a cake
D)5/6 of a cake

Question 10

Refer to the table below. Based on their comparative advantage, Martha should specialize in _______ while Julia should specialize in _______. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

A)pies; cakes
B)cakes; pies
C)neither pies nor cakes; both pies and cakes
D)both pies and cakes; neither pies nor cakes

Question 11

If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ______ in the production of that good.

A)comparative advantage
B)absolute advantage
C)comparative advantage and an absolute advantage
D)absolute advantage and possibly a comparative advantage.

Question 12

Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. What is the opportunity cost to Dan of making a sandwich?

A)1/3 of a smoothie
B)3 smoothies
C)15 smoothies
D)5 smoothies

Question 13

Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?

A)Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies.
B)Dan has the comparative and absolute advantage in sandwiches.
C)Dan has the comparative and absolute advantage in smoothies.
D)Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.

Question 14

Refer to the table below. Martha's opportunity cost of making a cake is: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

A)3/4 of a pie.
B)4/3 of a pie.
C)6 pies.
D)60 pies.

Question 15

Refer to the table above. ______ has the comparative advantage in making pies and ______ the comparative advantage in making cakes. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

A)Martha; Martha
B)Julia; Julia
C)Martha; Julia
D)Julia; Martha

Question 16

If Al has an absolute advantage over Beth in preparing meals, then:

A)it takes Al more time to prepare a meal than Beth.
B)the problem of scarcity applies to Beth but not to Al.
C)Al's opportunity cost of preparing a meal is lower than is Beth's.
D)Al can prepare more meals in a given time period than Beth.

Question 17

Refer to the table below. According to the table, Martha has the absolute advantage in: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

A)pies.
B)neither pies nor cakes.
C)cakes.
D)both pies and cakes.

Question 18

Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?

A)Tracy should specialize in sandwiches and smoothies.
B)Dan should specialize in smoothies, and Tracy should specialize in sandwiches.
C)Dan should specialize in sandwiches, and Tracy should specialize in smoothies.
D)Dan should specialize in both sandwiches and smoothies.

Question 19

Refer to the table below. According to the table, Julia has the absolute advantage in: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

A)pies.
B)neither pies nor cakes.
C)cakes.
D)both pies and cakes.

Question 20

Refer to the table below. Martha's opportunity cost of making of a pie is: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Time to } \\\text { Make a Pie }\end{array} & \begin{array} { c } \text { Time to } \\\text { Make a Cake }\end{array} \\\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$

A)3/4 of a cake.
B)4/3 of a cake.
C)8 cakes.
D)80 cakes.

Question 21

Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Rooms Cleaned } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Meals Cooked } \\\text { Per Hour }\end{array} \\\hline \text { Lou } & 5 & 4 \\\hline \text { Alex } & 3 & 3 \\\hline\end{array}$$ For Alex, the opportunity cost of cleaning one room is making ______ meal(s); for Lou the opportunity cost of cleaning one room is making ______ meal(s).

A)4; 4
B)1; 4/5
C)1; 5/4
D)3; 5

Question 22

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: $$\begin{array} { | l | c | c | } \hline & \text { Cars Sold } & \text { Trucks Sold } \\\hline \text { Larry } & 10 & 5 \\\hline \text { Joe } & 9 & 9 \\\hline \text { Ralph } & 3 & 12 \\\hline\end{array}$$ Based on last month's data, Larry's opportunity cost of selling a truck is selling:

A)10 cars.
B)1/2 of a car.
C)1 car.
D)2 cars.

Question 23

Refer to the table below. Corey's opportunity cost of delivering of a pizza is making: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

A)6 pizzas.
B)12 pizzas.
C)2 pizzas.
D)1/2 of a pizza.

Question 24

Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Rooms Cleaned } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Meals Cooked } \\\text { Per Hour }\end{array} \\\hline \text { Lou } & 5 & 4 \\\hline \text { Alex } & 3 & 3 \\\hline\end{array}$$ Which of the following is true?

A)Lou has both an absolute advantage and a comparative advantage over Alex in both tasks.
B)Alex has a comparative advantage over Lou in cleaning.
C)Lou has a comparative advantage over Alex in cleaning.
D)Alex has both an absolute advantage and a comparative advantage over Lou in both tasks.

Question 25

Refer to the table below. According to the table, Pat has the absolute advantage in: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

A)making pizza.
B)neither making nor delivering pizza.
C)delivering pizza.
D)making and delivering pizza.

Question 26

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: $$\begin{array} { | l | c | c | } \hline & \text { Cars Sold } & \text { Trucks Sold } \\\hline \text { Larry } & 10 & 5 \\\hline \text { Joe } & 9 & 9 \\\hline \text { Ralph } & 3 & 12 \\\hline\end{array}$$ Based on last month's data, ______ has an absolute advantage in selling cars and ______ has an absolute advantage in selling trucks.

A)Joe; Joe
B)Larry; Ralph
C)Ralph; Larry
D)Larry; Joe

Question 27

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: $$\begin{array} { | l | c | c | } \hline & \text { Cars Sold } & \text { Trucks Sold } \\\hline \text { Larry } & 10 & 5 \\\hline \text { Joe } & 9 & 9 \\\hline \text { Ralph } & 3 & 12 \\\hline\end{array}$$ Based on last month's data, Joe's opportunity cost of selling a truck is selling:

A)9 cars.
B)1 car.
C)4 cars.
D)1/3 of a car.

Question 28

Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Rooms Cleaned } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Meals Cooked } \\\text { Per Hour }\end{array} \\\hline \text { Lou } & 5 & 4 \\\hline \text { Alex } & 3 & 3 \\\hline\end{array}$$ If Alex and Lou work out an efficient arrangement for these two chores, then under that arrangement:

A)Alex and Lou each would do half of the cooking and half of the cleaning.
B)Alex would do all of the cleaning, while Lou would do all the cooking.
C)Lou would do all of the cleaning and all of the cooking.
D)Lou would do all of the cleaning, while Alex would do all of the cooking.

Question 29

Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. Which of the following statements is correct?

A)Cathy should specialize in both pies and cakes.
B)There are no gains from specialization and trade.
C)Lewis should specialize in pies, and Cathy should specialize in cakes.
D)Cathy should specialize in pies, and Lewis should specialize in cakes.

Question 30

Refer to the table below. Pat's opportunity cost of delivering a pizza is making: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

A)12 pizzas
B)10 pizzas
C)3/2 of a pizza
D)2/3 of a pizza

Question 31

Refer to the table below. ______ has the comparative advantage in making pizza, and ______ has the comparative advantage in delivering pizza. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

A)Corey; Corey
B)Pat; Pat
C)Pat; Corey
D)Corey; Pat

Question 32

Suppose it takes Paul 3 hours to bake a cake and 2 hours to move the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?

A)Paul has the absolute advantage in baking cakes
B)Paul has the comparative in mowing the lawn
C)Paul has the comparative in baking cakes
D)Paul has the absolute advantage in mowing the lawn.

Question 33

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: $$\begin{array} { | l | c | c | } \hline & \text { Cars Sold } & \text { Trucks Sold } \\\hline \text { Larry } & 10 & 5 \\\hline \text { Joe } & 9 & 9 \\\hline \text { Ralph } & 3 & 12 \\\hline\end{array}$$ Based on last month's data, Ralph's opportunity cost of selling a truck is selling:

A)4 cars.
B)1/3 of a car.
C)3 cars.
D)1/4 of a car.

Question 34

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: $$\begin{array} { | l | c | c | } \hline & \text { Cars Sold } & \text { Trucks Sold } \\\hline \text { Larry } & 10 & 5 \\\hline \text { Joe } & 9 & 9 \\\hline \text { Ralph } & 3 & 12 \\\hline\end{array}$$ Based on last month's data, Joe's opportunity cost of selling a car is ______ than Ralph's, and Joe's opportunity cost of selling a car is ______ than Larry's.

A)less; greater
B)greater; less
C)less; less
D)greater; greater

Question 35

Refer to the table below. Pat's opportunity cost of making a pizza is delivering: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

A)3 pizzas
B)2 pizzas
C)3/2 of a pizza
D)2/3 of a pizza

Question 36

Refer to the table below. According to the table, Corey has the absolute advantage in: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

A)making pizza.
B)neither making nor delivering pizza.
C)delivering pizza.
D)making and delivering pizza.

Question 37

Refer to the table below. Corey's opportunity cost of making of a pizza is delivering: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

A)2 pizzas.
B)3/2 of a pizza.
C)2/3 of a pizza.
D)1/2 of a pizza.

Question 38

Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. Which of the following statements is correct?

A)Cathy has a comparative advantage in pies, and Lewis has an absolute advantage in pies.
B)Cathy has a comparative and absolute advantage in pies.
C)Lewis has a comparative and absolute advantage in pies.
D)Lewis has a comparative advantage in pies, and Cathy has an absolute advantage in pies.

Question 39

Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. What is the opportunity cost to Cathy of making a cake?

A)2/3 of a pie.
B)1 pie.
C)1.5 pies.
D)1.33 pies.

Question 40

Refer to the table below. Based on their comparative advantages, Pat should specialize in _______, and Corey should specialize in _______. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

A)delivering pizza; making pizza
B)making pizza; delivering pizza
C)neither making pizza nor delivering pizza; both making pizza and delivering pizza
D)both making pizza and delivering pizza; neither making pizza nor delivering pizza

Question 41

Points that lie outside the production possibilities curve are ______, and points that lie inside the production possibilities curve are ______.

A)efficient; inefficient
B)inefficient; efficient
C)unattainable; attainable
D)attainable; unattainable

Question 42

The textbook notes that the last time a major league batter hit .400 was in 1941. This is because:

A)the average quality of batters has fallen.
B)the league imposes harsh penalties for steroid use.
C)specialization by pitchers, infielders, and outfielders has made it harder for batters to hit.
D)baseball diamonds have become larger.

Question 43

The production possibilities curve shows:

A)the minimum production of one good for every possible production level of the other good.
B)how increasing the resources used to produce one good increases the production of the other good.
C)the maximum production of one good for every possible production level of the other good.
D)how increasing the production of one good allows production of the other good to also rise.

Question 44

Suppose Colin brews beer and makes cheese. If Colin can increase his production of beer without decreasing his production of cheese, then he is producing at an:

A)inefficient point.
B)efficient point.
C)unattainable point.
D)ideal point.

Question 45

The United States generally has a comparative advantage in the development of technology because it has:

A)large amounts of natural resources.
B)a disproportionate share of the world's best research universities.
C)the greatest need for new technology.
D)patent laws, which no other country has.

Question 46

The downward slope of the production possibilities curve illustrates the:

A)Scarcity Principle.
B)Cost-Benefit Principle.
C)Incentive Principle.
D)Principle of Comparative Advantage.

Question 47

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: $$\begin{array} { | l | c | c | } \hline & \text { Cars Sold } & \text { Trucks Sold } \\\hline \text { Larry } & 10 & 5 \\\hline \text { Joe } & 9 & 9 \\\hline \text { Ralph } & 3 & 12 \\\hline\end{array}$$ Based on last month's data, ______ should specialize in truck sales, and ______ should specialize in car sales.

A)Joe; Ralph
B)Ralph; Larry
C)Larry; Ralph
D)Larry; Joe

Question 48

The emergence of English as the de facto world language has _____ a comparative advantage in the production of books, movies and popular music:

A)given English-speaking countries
B)given non-English-speaking countries
C)had no effect on which country has
D)given all countries

Question 49

Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather more mangoes per hour than Maryann and can also catch more fish per hour than can Maryann. Therefore:

A)There are no gains to specialization and trade for Ginger.
B)There are no gains to specialization and trade for Maryann.
C)Maryann should specialize in the activity for which she has a comparative advantage.
D)Ginger should specialize in the activity for which she has an absolute advantage.

Question 50

If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an:

A)inefficient point.
B)efficient point.
C)unattainable point.
D)undesirable point.

Question 51

The United States was unable to maintain its dominance in the production of televisions because:

A)the highly technical skills necessary to produce televisions are greater in other countries.
B)the raw materials necessary to build televisions became scarce in the United States.
C)the product designs evolved too rapidly for engineers in the United States to keep up.
D)automated techniques allowed production to be outsourced to countries with less-skilled workers.

Question 52

The figure below shows the production possibilities curve for the island of Genovia: If 500 cars are produced in Genovia, a maximum of ______ tons of agricultural products can be produced.

A)50,000
B)25,000
C)45,000
D)40,000

Question 53

The slope of a production possibilities curve is ______ because ______.

A)negative; producing more of one good requires producing less of the other
B)negative; producing less of one good requires producing less of the other
C)positive; producing more of one good requires producing more of the other
D)positive; producing more of one good requires producing less of the other

Question 54

In general, individuals and nations should specialize in producing those goods for which they have a(n):

A)absolute advantage.
B)comparative advantage.
C)absolutely comparative advantage.
D)absolute advantage and a comparative advantage.

Question 55

The figure below shows the production possibilities curve for the island of Genovia: The opportunity cost of producing a car in Genovia is:

A)5,000 tons of agricultural products.
B)500 tons of agricultural products.
C)5 tons of agricultural products.
D)50 tons of agricultural products.

Question 56

In general, individuals and nations should specialize in producing goods ______ other individuals or nations.

A)that they can produce more quickly than
B)that they can produce less quickly than
C)for which they have a lower opportunity cost compared to
D)for which they have a higher opportunity cost compared to

Question 57

The figure below shows the production possibilities curve for the island of Genovia: The opportunity cost of producing one ton of agricultural products in Genovia is:

A)1,000 cars.
B)1 car.
C)1/5 of a car.
D)1/50 of a car.

Question 58

Points that lie beneath the production possibilities curve are:

A)unattainable and inefficient
B)unattainable but efficient
C)attainable but inefficient
D)attainable and efficient

Question 59

A country is most likely to have a comparative advantage in the production of cars if:

A)it imports most of the raw materials necessary to produce cars.
B)its citizens prefer driving cars to other forms of transportation.
C)it has strict environmental protection laws governing automobile emissions.
D)it has a relative abundance in the natural resources needed to produce cars.

Question 60

A graph that illustrates the maximum amount of one good that can be produced for every possible level of production of the other good is called a(n):

A)production possibilities curve.
B)consumption possibilities curve.
C)production function.
D)supply curve.

Question 61

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Of the labeled points, only ______ are efficient.

A)T and U
B)X, Y, and Z
C)W, X, Y, Z, and V
D)W, X, Y, Z, V, and T

Question 62

Refer to the figure below. For Chris, the opportunity cost of removing one bag of trash is planting:

A)25 bulbs.
B)1/25 of a bulb.
C)3 bulbs.
D)1/3 of a bulb.

Question 63

Refer to the figure below. Growing 1,000 bushels of wheat and no bushels of corn each year is:

A)inefficient and unattainable.
B)inefficient but attainable.
C)efficient but unattainable.
D)efficient and attainable.

Question 64

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Point T is:

A)attainable
B)efficient
C)both attainable and efficient
D)neither attainable nor efficient

Question 65

The figure below shows Becky's daily production possibilities curve for dresses and skirts. The maximum number of skirts that Becky can make in a day is represented by point:

A)U
B)T
C)V
D)Z

Question 66

Refer to the figure below. If Pat and Chris each spend half their time on each task, then:

A)the outcome will be efficient.
B)they will plant more bulbs and remove fewer bags of trash than if they had each specialized in the task at which they have a comparative advantage.
C)they will plant fewer bulbs and remove fewer bags of trash than if they each had specialized in the task at which they have a comparative advantage.
D)the outcome will be unattainable.

Question 67

Refer to the figure below. For Pat, the opportunity cost of planting one bulb is removing:

A)20 bags of trash.
B)5 bags of trash.
C)1/20 of a bag of trash.
D)1/5 of a bag of trash.

Question 68

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Point U is:

A)attainable.
B)efficient.
C)unattainable.
D)inefficient.

Question 69

Refer to the figure below. For Pat, the opportunity cost of removing one bag of trash is planting:

A)100 bulbs.
B)5 bulbs.
C)1/100 of a bulb.
D)1/5 of a bulb.

Question 70

Any combination of goods that can be produced with currently available resources is an:

A)attainable point.
B)efficient point.
C)inefficient point.
D)attainable and efficient point.

Question 71

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Of the labeled points, only ______ are attainable.

A)T and U
B)X, Y, and Z
C)W, X, Y, Z, and V
D)W, X, Y, Z, V, and T

Question 72

Refer to the figure below. For Chris, the opportunity cost of planting one bulb is removing:

A)25 bags of trash.
B)1/25 of a bag of trash.
C)3 bags of trash.
D)1/3 of a bag of trash.

Question 73

Refer to the figure below. If Pat and Chris were to specialize in the task in which each has a comparative advantage:

A)Chris would plant bulbs and Pat would remove trash.
B)Chris would remove trash and Pat would plant bulbs.
C)Pat and Chris would each spend half of their time each task.
D)both Pat and Chris would plant bulbs because they both have an absolute advantage in that task.

Question 74

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Point Y is ______, and point V is ______.

A)efficient; inefficient
B)inefficient; efficient
C)efficient; efficient
D)inefficient; inefficient

Question 75

Consider a graph of a production possibilities curve. If a producer is operating at an inefficient point, then that producer:

A)cannot produce more of one good without giving up some of the other good.
B)can produce more of one good without producing less of the other good.
C)must be at an unattainable point on the production possibilities curve.
D)must be specializing in activities for which it has a comparative advantage.

Question 76

The figure below shows Becky's daily production possibilities curve for dresses and skirts. The maximum number of dresses that Becky can make in a day is represented by point:

A)U
B)T
C)V
D)W

Question 77

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Relative to point X, at point Y:

A)more dresses and more skirts are produced.
B)more skirts and fewer dresses are produced.
C)more dresses and fewer skirts are produced.
D)fewer skirts and fewer dresses are produced.

Question 78

On a graph of a production possibilities curve, if a point is attainable, then it:

A)must be efficient.
B)might or might not be efficient.
C)is efficient only if it does not exhaust all currently available resources.
D)must completely exhaust all currently available resources.

Question 79

On a graph of a production possibilities curve, an inefficient point is:

A)necessarily an attainable point.
B)not necessarily an attainable point.
C)necessarily an unattainable point.
D)possibly an unattainable point.

Question 80

Points that lie below the production possibilities curve are inefficient because:

A)more of one good could be produced without producing less of the other.
B)producing more of one good means producing less of the other.
C)producers face scarcity.
D)too many goods are being produced.