Question 1

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Mohammed and Aisha would produce the maximum quantities of both cookies and sweaters if:

Accepted Answer

If Aisha knits and bakes, she can produce 15 sweaters and 480 cookies. 
If Mohammed knits and bakes, he can produce 5 sweaters and 240 cookies. 
Together, they can produce 20 sweaters and 720 cookies per week. 
This is the maximum quantity of both products.

Question 2

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Aisha's opportunity cost of knitting one sweater is:​

Accepted Answer

Opportunity cost of knitting one sweater for Aisha is the number of cookies she could have baked instead. 
Thus, Aisha's opportunity cost of knitting one sweater = 480 cookies/15 sweaters = 32 cookies/sweater.

Question 3

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Hans' opportunity cost of doing one load of laundry is:

Accepted Answer

Hans' opportunity cost of doing one load of laundry is the amount of typing he foregoes to do that laundry. Since he can type 6 pages per hour and do 4 loads of laundry per hour, for each load of laundry, he gives up 6/4 = 1.5 pages.

Question 4

If Helen can paint one room in the time it takes her to bake 40 cakes and Josh can paint one room in the time it takes him to bake 60 cakes,which of the following is true?

Accepted Answer

The opportunity cost is the value of the next best alternative forgone. In this case, for Helen, the opportunity cost of painting one room is the number of cakes she could bake instead. Since she can bake 40 cakes in the same amount of time, her opportunity cost of painting is lower than Josh's, who can only bake 60 cakes in the same amount of time. Therefore, the opportunity cost of baking cakes is lower for Josh, making option B the correct answer.

Question 5

Eileen has a comparative advantage over Jan in piano tuning,but not shoe polishing.Therefore,_____.

Accepted Answer

Comparative advantage means that one person can produce a good or service at a lower opportunity cost than another person. In this case, Eileen has a comparative advantage over Jan in piano tuning, which means that producing one piano tuning takes Eileen less time or effort than it takes Jan. However, Eileen does not have a comparative advantage over Jan in shoe polishing. This means that if Eileen were to produce one shoe polishing, it would take her more time or effort than it would take Jan. Therefore, Jan must have a lower opportunity cost of shoe polishing, as it takes him less time or effort to produce one shoe polishing than it takes Eileen. We cannot conclude anything about absolute advantage from this information.

Question 6

​In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Which of the following is correct?

Accepted Answer

The answer of ​In one week,Mohammed can knit 5 sweaters...

Question 7

​Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.In any given amount of time,_____.

Accepted Answer

Maria can do more loads of laundry and type more pages per hour than Hans, giving her an absolute advantage in both tasks. However, the question of comparative advantage involves comparing their opportunity costs. Maria's higher productivity in both tasks means she has an absolute advantage, but the question specifically about comparative advantage is not directly addressed here. The correct answer is focused on Maria's absolute advantage in both tasks.

Question 8

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Aisha's opportunity cost of baking one cookie is:

Accepted Answer

Opportunity cost of baking one cookie for Aisha is the number of sweaters she could have knitted instead of baking 1 cookie. 
Therefore, her opportunity cost of baking one cookie is 15/480 = 1/32 of a sweater. 
The best choice cannot be determined from the given information as it depends on the individual preferences and needs of Mohammed and Aisha.

Question 9

Bill trades a ginger snap for a chocolate chip cookie.This is an example of:

Accepted Answer

Barter is the exchange of goods or services without the use of money. In this scenario, Bill is trading one item (ginger snap) for another item (chocolate chip cookie) without using money as a medium of exchange.

Question 10

If Helen can paint one room in the time it takes her to bake 40 cakes and Josh can paint one room in the time it takes him to bake 60 cakes,Josh's opportunity cost of baking one cake is:

Accepted Answer

Josh's opportunity cost of baking one cake is the value of what he is giving up in order to bake that one cake. In this case, he could have painted a certain fraction of a room in the time it took him to bake one cake. Since he can paint one room in the time it takes him to bake 60 cakes, his opportunity cost of baking one cake is painting 1/60 of a room.

Question 11

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Hans and Maria would both be better off if:

Accepted Answer

Hans has a comparative advantage in typing (6 pages per hour vs. Maria's 8, a smaller gap than in laundry), and Maria has a comparative advantage in doing laundry (12 loads per hour vs. Hans's 4). Specializing in these tasks and trading with each other would make both better off, according to the principle of comparative advantage.

Question 12

The figure below shows the production possibilities frontiers for rice and T-shirts for two countries,Costa Rica and United States.According to the figure below,in Costa Rica,the opportunity cost of 1 ton of rice is: Figure 2.1

Accepted Answer

The answer of The figure below shows the production possibilities...

Question 13

If Daniel produces one pair of shoes in 4 hours and Sarah produces one pair of shoes in 3 hours,then:

Accepted Answer

The answer of If Daniel produces one pair of shoes...

Question 14

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Mohammed's opportunity cost baking one cookie is:

Accepted Answer

Opportunity cost is calculated by comparing the two options and dividing the output of one option by the output of the other option.

For Mohammed, his opportunity cost of baking one cookie is: 
Output of other option (knitting one sweater) / Output of chosen option (baking one cookie) = 5/240 = 1/48 of a sweater.

Therefore, the best choice for Mohammed depends on the market price of sweaters and cookies, as well as his own preferences and skills. He should choose the option that has a lower opportunity cost and a higher profit margin.

Question 15

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Maria's opportunity cost of typing one page is:

Accepted Answer

Maria's opportunity cost of typing one page is equal to the amount of laundry she could have done in the time it took her to type one page. Since she can do 12 loads of laundry per hour, her opportunity cost of typing one page is 12/8 = 3/2 of a load of laundry. Therefore, the best choice is C.

Question 16

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Mohammed's opportunity cost of knitting one sweater is:

Accepted Answer

Mohammed's opportunity cost of knitting one sweater is the amount of cookies he could have baked instead. Since he can bake 240 cookies or knit 5 sweaters in one week, the opportunity cost of knitting one sweater is 240 cookies / 5 sweaters = 48 cookies per sweater.

Question 17

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Maria's opportunity cost of doing one load of laundry is:

Accepted Answer

Opportunity cost is defined as the value of the next best alternative forgone. In this case, the next best alternative for Maria when she is doing one load of laundry is typing. Since she can type 8 pages per hour, her opportunity cost of doing one load of laundry is 8 pages/12 loads = 2/3 of a page. Therefore, the answer is C.

Question 18

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Hans' opportunity cost of typing one page is:

Accepted Answer

The answer of Hans can do 4 loads of laundry...

Question 19

Barter occurs when:

Accepted Answer

Barter is the direct exchange of one good or service for another, without the use of money as a medium of exchange. This is different from using money to buy goods or services, as mentioned in options C and E. Option A is incorrect as it describes a communal living situation, which is not always the case with barter. Option D does not make sense as exchanging money for money does not involve barter.

Question 20

If Helen can paint one room in the time it takes her to bake 40 cakes and Josh can paint one room in the time it takes him to bake 60 cakes,Helen's opportunity cost of baking one cake is:

Accepted Answer

Helen can paint one room or bake 40 cakes in the same amount of time. This means that her opportunity cost of baking one cake is the amount of painting she could have done in the time it takes to bake 1/40 of a room (which is the time it takes to bake one cake). Therefore, her opportunity cost is painting 1/40 of a room, or answer choice B.

Quiz 2: Economic Tools and Economic Systems