Question 1

Citizens can consume more of everything in a(n)

Accepted Answer

Opening an economy to trade may allow citizens to consume more of everything.

Question 2

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one car is ________ pounds of cheese.

Accepted Answer

In the time it takes Amy to produce 1 car, she can produce 5,000/20 = 250 pounds of cheese.

Question 3

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one car is ________ pound(s)of cheese.

Accepted Answer

In the time it takes Mike to produce 1 car, he can produce 5,000/10 = 500 pounds of cheese.

Question 4

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. By the principle of comparative advantage, Mike should specialize in producing

Accepted Answer

Amy's opportunity cost of producing cars is lower than is Mike's (250 < 500), while Mike's opportunity cost of produce cheese is lower than is Amy's (1/500 < 1/250). So Amy has a comparative advantage in cars, and Mike has a comparative advantage in cheese. This implies that Amy should specialize in producing cars and Mike should specialize in producing cheese.

Question 5

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl.  Who has the highest opportunity cost of producing rice?

Accepted Answer

The answer of The following graph is the production possibility...

Question 6

The country Happy Land claims that it is producing everything its citizens consume. This situation is called

Accepted Answer

A situation in which a country is economically self-sufficient, producing everything its citizens consume, is called an autarky.

Question 7

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.

Accepted Answer

Amy's opportunity cost of producing cars is lower than is Mike's (250 < 500), while Mike's opportunity cost of produce cheese is lower than is Amy's (1/500 < 1/250). So Amy has a comparative advantage in cars, and Mike has a comparative advantage in cheese. If Amy specializes in producing cars, then she can produces 20 cars per year, and if Mike specializes in producing cheese, then he can produce 500 pounds of cheese per year.

Question 8

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl.  The slope of the PPC between points Y and Z is determined by ________ opportunity cost.

Accepted Answer

The answer of The following graph is the production possibility...

Question 9

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari.  
 Who has the greatest comparative advantage in shoe production?

Accepted Answer

The answer of The following graph is the production possibility...

Question 10

An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the most of each type that can be produced per day if each worker fully specializes according to his/her comparative advantage?

Accepted Answer

Rich has a comparative advantage in TVs, and Jen has a comparative advantage in radios. If Rich specializes in producing TVs, then he can produce 4 per day, and if Jen specializes in producing radios, then she can produce 10 per day.

Question 11

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. By the principle of comparative advantage, Amy should specialize in producing

Accepted Answer

Amy's opportunity cost of producing cars is lower than is Mike's (250 < 500), while Mike's opportunity cost of produce cheese is lower than is Amy's (1/500 < 1/250). So Amy has a comparative advantage in cars, and Mike has a comparative advantage in cheese. This implies that Amy should specialize in producing cars and Mike should specialize in producing cheese.

Question 12

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl.  The slope of the PPC between points X and Y is determined by ________ opportunity cost.

Accepted Answer

The answer of The following graph is the production possibility...

Question 13

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one pound of cheese is ________ car(s).

Accepted Answer

In the time it takes Amy to produce 1 pound of cheese, she can produce 20/5,000 = 1/250 cars.

Question 14

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari.  Who has the greatest comparative advantage in rice production?

Accepted Answer

The answer of The following graph is the production possibility...

Question 15

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s).

Accepted Answer

In the time it takes Mike to produce 1 car, he can produce 10/5,000 = 1/500 pounds of cheese.

Question 16

A country's economic welfare most directly depends on

Accepted Answer

Economic welfare depends most directly not on what a country can produce, but on what its citizens can consume.

Question 17

If a society's consumption possibilities are identical to its production possibilities that society has

Accepted Answer

In a closed economy with no trade, people can consume only the goods and services produced within their own country. In a closed economy, then, society's consumption possibilities are identical to its production possibilities.

Question 18

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy has a comparative advantage in producing ________, and Mike has a comparative advantage in producing ________.

Accepted Answer

Amy's opportunity cost of producing cars is lower than is Mike's (250 < 500), while Mike's opportunity cost of produce cheese is lower than is Amy's (1/500 < 1/250). So Amy has a comparative advantage in cars, and Mike has a comparative advantage in cheese.

Question 19

Autarky is a situation in which a country is economically

Accepted Answer

Autarky is a situation in which a country is economically self-sufficient.

Question 20

The combination of goods and services Mexico's citizens might feasibly consume are called Mexico's

Accepted Answer

The combinations of goods and services that a country's citizens might feasibly consume are called the country's consumption possibilities.

Quiz 15: International Trade and Trade Policy

Citizens can consume more of everything in a(n)

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one car is ________ pounds of cheese.

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one car is ________ pound(s) of cheese.

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. By the principle of comparative advantage, Mike should specialize in producing

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl. Who has the highest opportunity cost of producing rice?

The country Happy Land claims that it is producing everything its citizens consume. This situation is called

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl. The slope of the PPC between points Y and Z is determined by ________ opportunity cost.

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari. Who has the greatest comparative advantage in shoe production?

An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the most of each type that can be produced per day if each worker fully specializes according to his/her comparative advantage?

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. By the principle of comparative advantage, Amy should specialize in producing

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl. The slope of the PPC between points X and Y is determined by ________ opportunity cost.

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one pound of cheese is ________ car(s) .

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari. Who has the greatest comparative advantage in rice production?

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s) .

A country's economic welfare most directly depends on

If a society's consumption possibilities are identical to its production possibilities that society has

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy has a comparative advantage in producing , and Mike has a comparative advantage in producing .

Autarky is a situation in which a country is economically

The combination of goods and services Mexico's citizens might feasibly consume are called Mexico's