Question 1

Exhibit 2-1
 
-According to Exhibit 2-1, Hans and Maria would be better off if

Accepted Answer

According to Exhibit 2-1, Hans has a comparative advantage in typing as he can type 10 pages per hour compared to Maria's 6 pages per hour. Maria has a comparative advantage in doing laundry as she can do 8 loads per hour compared to Hans' 5 loads per hour. Therefore, it would be beneficial for Hans to specialize in typing and for Maria to specialize in doing laundry. This way, they can each focus on their comparative advantage and increase their overall productivity.

Question 2

Exhibit 2-1
 
-According to Exhibit 2-1, if Maria types one fewer page, how many loads of laundry can she do in the time saved on typing?

Accepted Answer

The answer of Exhibit 2-1
 
-According to Exhibit 2-1, if...

Question 3

In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per cookie for Tetah is

Accepted Answer

Opportunity cost is the value of the next best alternative that must be given up in order to pursue a certain action. Here, we can calculate Tetah's opportunity cost per cookie by finding out how many sweaters she could knit in the time it takes her to bake 1 cookie.

One way to do this is to set up a ratio:

15 sweaters / 480 cookies = x sweaters / 1 cookie

Cross-multiplying, we get:

15 sweaters * 1 cookie = 480 cookies * x sweaters

Simplifying:

15 sweaters = 480x sweaters

Dividing by 480:

15/480 = x

x = 1/32 of a sweater

Therefore, the opportunity cost per cookie for Tetah is 1/32 of a sweater.

The best choice with this information is not provided in the options.

Question 4

In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per cookie for Mohammed is

Accepted Answer

The opportunity cost is what Mohammed is giving up to produce one cookie. Since he can either knit 5 sweaters or bake 240 cookies in a week, the opportunity cost of one cookie is 1/48 of a sweater (5 sweaters / 240 cookies = 1/48 sweater per cookie). Therefore, the best choice is D.

Question 5

Exhibit 2-1
 
-According to Exhibit 2-1, if Hans does one fewer load of laundry, how many pages can he type in the time saved on laundry?

Accepted Answer

The answer of Exhibit 2-1
 
-According to Exhibit 2-1, if...

Question 6

Exhibit 2-1
 
-According to Exhibit 2-1, if Hans types one fewer page, how many loads of laundry can he do in the time saved on typing?

Accepted Answer

Since Hans can type 10 pages in the time it takes to do 2 loads of laundry, he can type 1 page in 1/5 of the time it takes to do one load of laundry. Therefore, if he types one fewer page, he saves 1/5 of the time it takes to do one load of laundry. 1/5 of one load is 2/5 of one third of a load, which simplifies to 2/15 of a load. Therefore, he can do 2/15 fewer loads of laundry with the time saved, which is approximately 0.13 loads, or 2/3 of a load.

Question 7

If I trade a ginger snap for a chocolate chip cookie, I am engaging in

Accepted Answer

Barter is the exchange of goods or services without the use of money. In this scenario, the exchange of a ginger snap for a chocolate chip cookie is an example of bartering.

Question 8

Money facilitates trade because

Accepted Answer

Money serves as a medium of exchange, allowing people to trade goods and services without the need for direct barter. Instead of having to find someone who wants what you have and has what you want, you can use money to easily exchange with anyone, increasing the efficiency and ease of trade.

Question 9

In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per sweater for Mohammed is

Accepted Answer

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

Question 10

Exhibit 2-1
 
-According to Exhibit 2-1, Maria's opportunity cost of doing a load of laundry is

Accepted Answer

In Exhibit 2-1, Maria has a choice between doing a load of laundry or reading four pages of her textbook. Since she has five hours of leisure time, she can either do five loads of laundry or read 20 pages of her textbook. Therefore, Maria's opportunity cost of doing one load of laundry is equal to the amount of pages she could have read in that time, which is 20 pages divided by five loads of laundry, or 2/3 of a page per load.

Question 11

Specialization can sometimes create problems such as boredom and repetitive motion injuries.

Accepted Answer

Specialization in a specific task or job can lead to boredom and performing the same actions repeatedly may cause injuries.

Question 12

Barter occurs when

Accepted Answer

Barter occurs when one product is exchanged directly for another product, without the use of money as a medium of exchange.

Question 13

Specialization often leads to gains in productivity for society as a whole.

Accepted Answer

Specialization allows individuals and businesses to focus on their specific areas of expertise, leading to greater efficiency and productivity. This, in turn, benefits society as a whole by increasing the overall output of goods and services available.

Question 14

Barter is

Accepted Answer

Barter is the direct exchange of goods or services without the use of money. It is still used today, although it is less common than in the past. It can be a useful system of exchange, especially in situations where money is not available or desirable. However, it can be inefficient if the parties involved have very different needs or if there is a lack of trust and communication. It is not illegal in the United States or in most other countries. It is also not dependent on the use of money as a medium of exchange.

Question 15

Exhibit 2-1
 
-According to Exhibit 2-1, in any given amount of time,

Accepted Answer

The answer of Exhibit 2-1
 
-According to Exhibit 2-1, in...

Question 16

In one week, Mohammed can knit 5 sweaters or bake 240 cookies. In one week, Tetah can knit 15 sweaters or bake 480 cookies. In this example,

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

Exhibit 2-1
 
-According to Exhibit 2-1, if Maria does one fewer load of laundry, how many pages can she type in the time saved on laundry?

Accepted Answer

The answer of Exhibit 2-1
 
-According to Exhibit 2-1, if...

Question 19

Exhibit 2-2
 
-Given the information in Exhibit 2-2, which product should Friday (an individual) make?

Accepted Answer

Based on the information given, Friday has a comparative advantage in making fishing poles since he can make 15 fishing poles or 10 fishhooks in a day, while Crusoe can only make 8 fishing poles or 20 fishhooks. Therefore, Friday should focus on making fishing poles and trade with Crusoe for fishhooks to maximize their total output.

Question 20

In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per sweater for Tetah is

Accepted Answer

The opportunity cost measures the value of the best alternative given up in order to produce a certain product. In this case, the opportunity cost of knitting one sweater for Tetah is the number of cookies she could have baked in the time it took her to knit that sweater. Therefore, the opportunity cost per sweater is 480 cookies ÷ 15 sweaters = 32 cookies per sweater. The best choice would be to prioritize producing the item with the lower opportunity cost, which is knitting sweaters.

Quiz 3: Economic Tools and Economics Systems

Exhibit 2-1 -According to Exhibit 2-1, Hans and Maria would be better off if

Exhibit 2-1 -According to Exhibit 2-1, if Maria types one fewer page, how many loads of laundry can she do in the time saved on typing?

In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per cookie for Tetah is

In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per cookie for Mohammed is

Exhibit 2-1 -According to Exhibit 2-1, if Hans does one fewer load of laundry, how many pages can he type in the time saved on laundry?

Exhibit 2-1 -According to Exhibit 2-1, if Hans types one fewer page, how many loads of laundry can he do in the time saved on typing?

If I trade a ginger snap for a chocolate chip cookie, I am engaging in

Money facilitates trade because

In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per sweater for Mohammed is

Exhibit 2-1 -According to Exhibit 2-1, Maria's opportunity cost of doing a load of laundry is

Specialization can sometimes create problems such as boredom and repetitive motion injuries.

Barter occurs when

Specialization often leads to gains in productivity for society as a whole.

Barter is

Exhibit 2-1 -According to Exhibit 2-1, in any given amount of time,

In one week, Mohammed can knit 5 sweaters or bake 240 cookies. In one week, Tetah can knit 15 sweaters or bake 480 cookies. In this example,

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

Exhibit 2-1 -According to Exhibit 2-1, if Maria does one fewer load of laundry, how many pages can she type in the time saved on laundry?

Exhibit 2-2 -Given the information in Exhibit 2-2, which product should Friday (an individual) make?

In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per sweater for Tetah is