Question 1

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

Accepted Answer

Barter is the direct 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 a form of bartering. Comparative advantage refers to a situation where one individual or country can produce a good or service at a lower opportunity cost than another individual or country, which is not relevant in this scenario. Absolute advantage refers to an individual or country's ability to produce a good or service using fewer resources than another individual or country, which is also not relevant in this scenario. Privatization refers to the transfer of ownership of a business or industry from the government to the private sector, and division of labor refers to the specialization of tasks in a production process. Neither of these concepts are relevant in this scenario.

Question 2

Barter occurs when

Accepted Answer

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

Question 3

NARRBEGIN: Exhibit 2-1
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 NARRBEGIN: Exhibit 2-1
Exhibit 2-1
 
-According to Exhibit...

Question 4

NARRBEGIN: Exhibit 2-1
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 NARRBEGIN: Exhibit 2-1
Exhibit 2-1
 
-According to Exhibit...

Question 5

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

Accepted Answer

The answer of NARRBEGIN: Exhibit 2-1
Exhibit 2-1
 
-According to Exhibit...

Question 6

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 per cookie is the value of what is given up in order to produce one more cookie, which is 1/240 of a sweater. Therefore, the best choice is to bake cookies, as the opportunity cost is lower than making sweaters.

Question 7

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

Accepted Answer

According to the information given in Exhibit 2-2, Friday's opportunity cost of producing one fishing pole is 3 fishhooks, while Crusoe's opportunity cost of producing one fishing pole is 4 fishhooks. This means Friday has a comparative advantage in fishing poles, as he gives up fewer fishhooks to produce one fishing pole than Crusoe does. Therefore, Friday should make fishing poles because that is where his comparative advantage lies.

Question 8

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

We can find the total "value" of each person's productivity in terms of cookies and sweaters using a ratio:

Mohammed: 
5 sweaters/week ÷ 1 week = 5 sweaters/week 
240 cookies/week ÷ 1 week = 240 cookies/week 
So, Mohammed's "value" in terms of cookies/sweaters is: 
240 cookies/week ÷ 5 sweaters/week = 48 cookies/sweater

Tetah: 
15 sweaters/week ÷ 1 week = 15 sweaters/week 
480 cookies/week ÷ 1 week = 480 cookies/week 
So, Tetah's "value" in terms of cookies/sweaters is: 
480 cookies/week ÷ 15 sweaters/week = 32 cookies/sweater

From this, we can see that Mohammed is more "efficient" at making cookies (he can make more cookies per sweater than Tetah) and Tetah is more "efficient" at making sweaters (she can make more sweaters per cookie than Mohammed).

Therefore, if they want to produce the maximum quantities of both cookies and sweaters, they should focus on their respective strengths by having Tetah knit 15 sweaters and bake 480 cookies and having Mohammed bake 60 cookies and knit 12 sweaters. This would result in a total of:

15 sweaters + 12 sweaters = 27 sweaters 
480 cookies + 60 cookies = 540 cookies

So the best choice is D) Tetah knitted and Mohammed baked.

Question 9

Barter is

Accepted Answer

Barter is the direct exchange of goods or services without using money as a medium of exchange. It was commonly used in early civilizations before the invention of money. While it can be useful in certain situations, it is not considered to be an efficient system of exchange compared to using money. In the United States, bartering is legal and subject to taxation.

Question 10

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

Accepted Answer

Specialization can lead to performing the same task over and over again, leading to physical strain and boredom, which can ultimately result in repetitive motion injuries.

Question 11

NARRBEGIN: Exhibit 2-1
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

There are 10 numbers in the sequence in Exhibit 2-1. Each number represents the time in minutes it takes Hans to type one page. The sum of the 10 numbers is 49, which means that he can type 49 pages in the total time saved on laundry. If he types one fewer page, he will have one more minute to do laundry, which equals 1/49 of the total time saved on laundry. To find how many loads of laundry he can do in that time, we divide 1/49 by the time it takes to do one load of laundry, which is 45 minutes. The calculation is: 1/49 ÷ 45 = 2/147 = 2/3 of a load. Therefore, the answer is D.

Question 12

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 of one sweater is the number of cookies that Tetah could have baked in the time it took her to knit one sweater. 
To find the opportunity cost, we can set up a ratio:
15 sweaters : 480 cookies
1 sweater : x cookies (solve for x)
x = 480 cookies ÷ 15 sweaters
x = 32 cookies
Therefore, the opportunity cost of one sweater for Tetah is 32 cookies. Choice C is the correct answer.

Question 13

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

Accepted Answer

The opportunity cost is the value of the next best alternative that has to be given up in order to do something else. In this case, Tetah can either knit 15 sweaters or bake 480 cookies in a week. The opportunity cost per cookie is the number of sweaters that Tetah could have knitted if she didn't bake any cookies. This is calculated by dividing the number of sweaters by the number of cookies: 15 sweaters / 480 cookies = 1/32 of a sweater per cookie. Therefore, the best choice is option D, with an opportunity cost of 1/32 of a sweater per cookie.

Question 14

NARRBEGIN: Exhibit 2-1
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 NARRBEGIN: Exhibit 2-1
Exhibit 2-1
 
-According to Exhibit...

Question 15

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 16

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

Accepted Answer

Specialization allows individuals to focus on their areas of expertise and become more efficient in producing goods or services, leading to increased productivity for society as a whole. This is because each individual can specialize in what they are best at and trade with others who specialize in different areas, leading to a more efficient allocation of resources.

Question 17

NARRBEGIN: Exhibit 2-1
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 and Maria has a comparative advantage in doing laundry. Therefore, if they specialize in these tasks and trade with each other, they can both benefit and be better off compared to if they each did their own tasks. Option A suggests that Hans should specialize in typing and Maria should specialize in doing laundry, which is the best choice based on the given information in the exhibit.

Question 18

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

Accepted Answer

Based on Exhibit 2-1, Maria has to give up 2 pages of studying to do one load of laundry. Therefore, her opportunity cost of doing a load of laundry is 2 pages, or 2/3 of a page per sock (since she can wash 3 socks with one load of laundry). So, the best choice is C.

Question 19

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 20

Money facilitates trade because

Accepted Answer

Money serves as a medium of exchange, meaning that it is an accepted unit of value that can be used to purchase goods and services, making trade more efficient and convenient.

Quiz 2: Economic Tools and Economics Systems

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

Barter occurs when

NARRBEGIN: Exhibit 2-1 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?

NARRBEGIN: Exhibit 2-1 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?

NARRBEGIN: Exhibit 2-1 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. The opportunity cost per cookie for Mohammed is

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

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

Barter is

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

NARRBEGIN: Exhibit 2-1 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?

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

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

NARRBEGIN: Exhibit 2-1 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, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per sweater for Mohammed is

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

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

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

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,

Money facilitates trade because