Question 1

Table 3-1&#10;  &#10;Refer to Table 3-1.What does each producer have an absolute or comparative advantage in?&#10;A)The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat.&#10;B)The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes.&#10;C)The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes.&#10;D)The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat.

Accepted Answer

The farmer can produce more potatoes and meat than the rancher in a given amount of time. However, the rancher has a lower opportunity cost in producing meat compared to the farmer, which means the rancher gives up less of producing potatoes than the farmer to produce one unit of meat. Therefore, the rancher has a comparative advantage in meat while the farmer has an absolute advantage in potatoes.

Question 2

If there is no trade,which of the following is most likely?&#10;A)A country is better off because it will become self-sufficient.&#10;B)A country's production possibilities frontier is also its consumption possibilities frontier.&#10;C)A country can still benefit from international specialization.&#10;D)A country has more product variety available.

Accepted Answer

If there is no trade, a country's production possibilities frontier (PPF) becomes its consumption possibilities frontier (CPF), meaning the country can only consume what it produces. This limits product variety and options for consumers. However, it does not necessarily mean the country is better off or can benefit from international specialization.

Question 3

If there is trade,which of the following is most likely?&#10;A)A country is worse off because it becomes dependent on other countries.&#10;B)A country will produce a greater variety of goods and services to trade.&#10;C)A country's consumption possibilities frontier can be outside its production possibilities frontier.&#10;D)A country will experience a lower unemployment rate.

Accepted Answer

Trade allows a country to consume more than it can produce on its own, effectively shifting its consumption possibilities frontier outward, beyond its production possibilities frontier. This is because trade enables countries to specialize in the production of goods and services in which they have a comparative advantage, and then trade for other goods and services they need or want, thus potentially consuming more or a greater variety of goods and services than they could produce on their own.

Question 4

Table 3-1&#10;  &#10;Refer to Table 3-1.What is the opportunity cost of 1 kg of meat for the farmer?&#10;A)1/4 hour of labour&#10;B)4 hours of labour&#10;C)4 kg of potatoes&#10;D)1/4 kg of potatoes

Accepted Answer

According to the table, the farmer can produce either 4 kg of potatoes or 1 kg of meat for the same amount of labour, which means the opportunity cost of 1 kg of meat is 4 kg of potatoes. Therefore, the best choice for the farmer would be to produce potatoes since the opportunity cost of producing meat is higher.

Question 5

Table 3-1&#10;  &#10;Refer to Table 3-1.What does each producer have an absolute advantage in?&#10;A)The farmer has an absolute advantage in meat, and the rancher has an absolute advantage in potatoes.&#10;B)The farmer has an absolute advantage in potatoes, and the rancher has an absolute advantage in meat.&#10;C)The rancher has an absolute advantage in neither good, and the farmer has an absolute advantage in both goods.&#10;D)The farmer has an absolute advantage in neither good, and the rancher has an absolute advantage in both goods.

Accepted Answer

Absolute advantage refers to a producer's ability to produce more of a good or service than another producer using the same amount of resources. In this case, the farmer can produce 20 potatoes or 10 units of meat in one day, while the rancher can produce 40 potatoes or 20 units of meat in one day. Therefore, the farmer has an absolute advantage in potatoes (can produce twice as many as the rancher) and the rancher has an absolute advantage in meat (can produce twice as many as the farmer). Hence, option B is the correct answer.

Question 6

Table 3-1&#10;  &#10;Refer to Table 3-1.What is the opportunity cost of 1 kg of potatoes for the farmer?&#10;A)8 hours of labour&#10;B)2 hours of labour&#10;C)4 kg of meat&#10;D)1/4 kg of meat

Accepted Answer

The opportunity cost of producing 1 kg of potatoes is the amount of meat that could have been produced with the same resources. If 4 kg of meat is the alternative output, then the opportunity cost is 1/4 kg of meat per kg of potatoes.

Question 7

Table 3-2&#10;  &#10;Refer to Table 3-2.What is the opportunity cost of 1 kilogram of meat for the farmer?&#10;A)1/4 hour of labour&#10;B)4 hours of labour&#10;C)4 kilograms of potatoes&#10;D)1/4 kilogram of potatoes

Accepted Answer

The opportunity cost of 1 kilogram of meat for the farmer is 4 kilograms of potatoes. Therefore, the farmer should choose to produce potatoes as it has a comparative advantage over producing meat, and can produce 4 kilograms of potatoes in the same amount of time it takes to produce 1 kilogram of meat.

Question 8

When will a production possibilities frontier be linear and not bowed out?&#10;A)if no tradeoffs exist&#10;B)if the tradeoff between the two goods is always at a constant rate&#10;C)if unemployment is zero&#10;D)if resources are allocated efficiently

Accepted Answer

A linear PPF means that the tradeoff between the two goods is always at a constant rate. This can happen if the resources used to produce the two goods are perfect substitutes for each other, meaning that it takes the same amount of resources to produce one unit of either good. In this case, the PPF would be a straight line. However, in most situations, resources are not perfect substitutes, so the PPF would be bowed out.

Question 9

Table 3-1&#10;  &#10;Refer to Table 3-1.What is the opportunity cost of 1 kg of potatoes for the rancher?&#10;A)4 hours of labour&#10;B)5 hours of labour&#10;C)5/4 kg of meat&#10;D)4/5 kg of meat

Accepted Answer

According to the table, the rancher can produce either 1 kg of meat or 5/4 kg of potatoes in 1 hour of labour. Therefore, the opportunity cost of 1 kg of potatoes for the rancher is 5/4 kg of meat. To make the best choice, we need to compare the opportunity cost of producing potatoes for the rancher and the farmer. The farmer can produce either 1 kg of meat or 1/2 kg of potatoes in 1 hour of labour. Therefore, the opportunity cost of 1 kg of potatoes for the farmer is 2 kg of meat. Since the opportunity cost of producing potatoes is lower for the rancher, it is more efficient for the rancher to produce potatoes and trade with the farmer for meat. Therefore, the best choice for the rancher is to produce potatoes.

Question 10

What is the best reason for people to provide you with goods and services?&#10;A)They are acting out of generosity.&#10;B)They are acting because they like you.&#10;C)They do so because they get something in return.&#10;D)They are required to do so by the government.

Accepted Answer

People are most likely to provide goods and services because they get something in return, such as payment, a trade, or a favor. This is the basis of most economic transactions and it benefits both parties involved. Generosity and personal feelings may play a role, but they are not the main driving force behind economic exchanges. The government may require certain actions, but this is not a reliable or sustainable reason for people to provide goods and services.

Question 11

Table 3-1&#10;  &#10;Refer to Table 3-1.What is the opportunity cost of 1 kg of meat for the rancher?&#10;A)4 hours of labour&#10;B)5 hours of labour&#10;C)5/4 kg of potatoes&#10;D)4/5 kg of potatoes

Accepted Answer

The answer of Table 3-1&#10;  &#10;Refer to Table 3-1.What...

Question 12

When can a country's consumption possibilities frontier be outside its production possibilities frontier?&#10;A)if additional resources become available&#10;B)if there is an increase in the level of technology&#10;C)if the country engages in trade&#10;D)if resources are shiftable

Accepted Answer

The answer of When can a country's consumption possibilities frontier...

Question 13

Table 3-1&#10;  &#10;Refer to Table 3-1.What does each producer have a comparative advantage in?&#10;A)The rancher has a comparative advantage in neither good, and the farmer has a comparative advantage in both goods.&#10;B)The rancher has a comparative advantage in both goods, and the farmer has a comparative advantage in neither good.&#10;C)The rancher has a comparative advantage in meat, and the farmer has a comparative advantage in potatoes.&#10;D)The rancher has a comparative advantage in potatoes, and the farmer has a comparative advantage in meat.

Accepted Answer

The answer of Table 3-1&#10;  &#10;Refer to Table 3-1.What...

Question 14

Which of the following is NOT an implication of our model of trade?&#10;A)Trade allows for specialization.&#10;B)Trade is good for nations.&#10;C)Trade is based on absolute advantage.&#10;D)Trade allows individuals to consume more than otherwise.

Accepted Answer

The answer of Which of the following is NOT an...

Question 15

Regan grows flowers and makes vases.Jayson also grows flowers and makes vases,but Regan is better at producing both.Who has an absolute or comparative advantage in what activity?&#10;A)Regan has an absolute advantage in both activities.&#10;B)Jayson has an absolute advantage in both activities.&#10;C)Regan has a comparative advantage in growing flowers.&#10;D)Jayson has a comparative advantage in growing flowers.

Accepted Answer

The answer of Regan grows flowers and makes vases.Jayson also...

Question 16

A rancher can produce only hamburgers,while a farmer can produce only French fries.If the rancher and the farmer like both foods,which of the following is most likely?&#10;A)They cannot gain from trade.&#10;B)They could gain from trade under certain circumstances, but not always.&#10;C)They could gain from trade because each would enjoy a greater variety of food.&#10;D)They could gain from trade only if each were indifferent between hamburgers and French fries.

Accepted Answer

The answer of A rancher can produce only hamburgers,while a...

Question 17

Table 3-1&#10;  &#10;Refer to Table 3-1.How could the farmer and rancher both benefit?&#10;A)by the farmer specializing in meat and the rancher specializing in potatoes&#10;B)by the farmer specializing in potatoes and the rancher specializing in meat&#10;C)by the farmer specializing in neither good and the rancher specializing in both goods&#10;D)by the farmer specializing in both goods and the rancher specializing in neither good

Accepted Answer

The answer of Table 3-1&#10;  &#10;Refer to Table 3-1.How...

Question 18

Suppose labour in Mexico is less productive than labour in Canada.What can we conclude from this information?&#10;A)that neither nation can benefit from trade&#10;B)that Mexico can benefit from trade, but Canada cannot&#10;C)that Mexico will not have a comparative advantage in any good&#10;D)that both nations can benefit from trade

Accepted Answer

The answer of Suppose labour in Mexico is less productive...

Question 19

What is the difference between production possibilities frontiers that are bowed out and those that are linear?&#10;A)Bowed out production possibilities frontiers illustrate tradeoffs, whereas linear production possibilities frontiers do not.&#10;B)Bowed out production possibilities frontiers show increasing opportunity cost, whereas linear ones show constant opportunity cost.&#10;C)Bowed out production possibilities frontiers are the result of perfectly shiftable resources whereas linear production possibilities frontiers are not.&#10;D)Bowed out production possibilities frontiers illustrate real world conditions less than linear production possibilities frontiers.

Accepted Answer

The answer of What is the difference between production possibilities...

Question 20

Table 3-1&#10;  &#10;Refer to Table 3-1.What does each producer have an absolute or comparative advantage in?&#10;A)The rancher has an absolute advantage in both goods, and the farmer has a comparative advantage in meat.&#10;B)The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in potatoes.&#10;C)The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in neither good.&#10;D)The rancher has an absolute advantage in both goods, and the farmer has a comparative advantage in potatoes.

Accepted Answer

The answer of Table 3-1&#10;  &#10;Refer to Table 3-1.What...

Question 21

Figure 3-2&#10;  &#10;Refer to Figure 3-2.What is the opportunity cost of 1 bushel of wheat for Cliff?&#10;A)1/4 bushel of corn&#10;B)1/2 bushel of corn&#10;C)1 bushel of corn&#10;D)4 bushels of corn

Accepted Answer

The answer of Figure 3-2&#10;  &#10;Refer to Figure 3-2.What...

Question 22

Figure 3-1&#10;  &#10;Refer to Figure 3-1.If Paul divides his time equally between corn and wheat,what will he be able to produce?&#10;A)2 bushels of wheat and 2 bushels of corn&#10;B)3 bushels of wheat and 3 bushels of corn&#10;C)4 bushels of wheat and 5 bushels of corn&#10;D)4 bushels of wheat and 6 bushels of corn

Accepted Answer

The answer of Figure 3-1&#10;  &#10;Refer to Figure 3-1.If...

Question 23

Figure 3-2&#10;  &#10;Refer to Figure 3-2.If Paul divides his time equally between corn and wheat,what will he be able to produce?&#10;A)4 bushels of wheat and 1 bushel of corn&#10;B)4 bushels of wheat and 5 bushels of corn&#10;C)5 bushels of wheat and 4 bushels of corn&#10;D)5 bushels of wheat and 5 bushels of corn

Accepted Answer

The answer of Figure 3-2&#10;  &#10;Refer to Figure 3-2.If...

Question 24

Table 3-2&#10;  &#10;Refer to Table 3-2.What is the opportunity cost of 1 kilogram of potatoes for the farmer?&#10;A)8 hours of labour&#10;B)2 hours of labour&#10;C)4 kilograms of meat&#10;D)1/4 kilogram of meat

Accepted Answer

The answer of Table 3-2&#10;  &#10;Refer to Table 3-2.What...

Question 25

Figure 3-2&#10;  &#10;Refer to Figure 3-2.Assume that Cliff and Paul were both producing wheat and corn,and both were dividing their time equally between the two.Then they decide to specialize in the product for which they have a comparative advantage and trade 3 bushels of wheat for 3 bushels of corn.What would Cliff now be able to consume?&#10;A)5 bushels of wheat and 3 bushels of corn&#10;B)4 bushels of wheat and 3 bushels of corn&#10;C)3 bushels of wheat and 5 bushels of corn&#10;D)3 bushels of wheat and 3 bushels of corn

Accepted Answer

The answer of Figure 3-2&#10;  &#10;Refer to Figure 3-2.Assume...

Question 26

Table 3-2&#10;  &#10;Refer to Table 3-2.What does each producer have an absolute or comparative advantage in?&#10;A)The rancher has an absolute advantage in both goods, and the farmer has a comparative advantage in meat.&#10;B)The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in potatoes.&#10;C)The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in neither good.&#10;D)The rancher has an absolute advantage in neither good, and the farmer has a comparative advantage in potatoes.

Accepted Answer

The answer of Table 3-2&#10;  &#10;Refer to Table 3-2.What...

Question 27

Table 3-2&#10;  &#10;Refer to Table 3-2.What is the opportunity cost of 1 kilogram of potatoes for the rancher?&#10;A)4 hours of labour&#10;B)5 hours of labour&#10;C)5/4 pounds of meat&#10;D)4/5 pound of meat

Accepted Answer

The answer of Table 3-2&#10;  &#10;Refer to Table 3-2.What...

Question 28

Figure 3-1&#10;  &#10;Refer to Figure 3-1.What do the two producers have an absolute advantage in?&#10;A)Paul has an absolute advantage in both wheat and corn.&#10;B)Paul has an absolute advantage in wheat, and Cliff has an absolute advantage in corn.&#10;C)Cliff has an absolute advantage in wheat, and Paul has an absolute advantage in corn.&#10;D)Cliff has an absolute advantage in both wheat and corn.

Accepted Answer

The answer of Figure 3-1&#10;  &#10;Refer to Figure 3-1.What...

Question 29

Figure 3-2&#10;  &#10;Refer to Figure 3-2.Assume that both Paul and Cliff divide their time equally between the production of corn and wheat,and they do not trade.If they were the only producers of corn and wheat,what would the total production of wheat and corn be?&#10;A)7 bushels of wheat and 8 bushels of corn&#10;B)8 bushels of wheat and 7 bushels of corn&#10;C)9 bushels of wheat and 6 bushels of corn&#10;D)18 bushels of wheat and 12 bushels of corn

Accepted Answer

The answer of Figure 3-2&#10;  &#10;Refer to Figure 3-2.Assume...

Question 30

Table 3-2&#10;  &#10;Refer to Table 3-2.What does each producer have an absolute or comparative advantage in?&#10;A)The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat.&#10;B)The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes.&#10;C)The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat.&#10;D)The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes.

Accepted Answer

The answer of Table 3-2&#10;  &#10;Refer to Table 3-2.What...

Question 31

Figure 3-1&#10;  &#10;Refer to Figure 3-1.What is the opportunity cost of 1 bushel of wheat for Cliff?&#10;A)1/3 bushel of corn&#10;B)2/3 bushel of corn&#10;C)1 bushel of corn&#10;D)3/2 bushels of corn

Accepted Answer

The answer of Figure 3-1&#10;  &#10;Refer to Figure 3-1.What...

Question 32

Table 3-2&#10;  &#10;Refer to Table 3-2.What does each producer have a comparative advantage in?&#10;A)The rancher has a comparative advantage in neither good, and the farmer has a comparative advantage in both goods.&#10;B)The rancher has a comparative advantage in both goods, and the farmer has a comparative advantage in neither good.&#10;C)The rancher has a comparative advantage in meat, and the farmer has a comparative advantage in potatoes.&#10;D)The rancher has a comparative advantage in potatoes, and the farmer has a comparative advantage in meat.

Accepted Answer

The answer of Table 3-2&#10;  &#10;Refer to Table 3-2.What...

Question 33

Table 3-2&#10;  &#10;Refer to Table 3-2.How could the farmer and rancher both benefit?&#10;A)by the farmer specializing in meat and the rancher specializing in potatoes&#10;B)by the farmer specializing in potatoes and the rancher specializing in meat&#10;C)by the farmer specializing in neither good and the rancher specializing in both goods&#10;D)by the farmer specializing in both goods and the rancher specializing in neither good

Accepted Answer

The answer of Table 3-2&#10;  &#10;Refer to Table 3-2.How...

Question 34

Figure 3-1&#10;  &#10;Refer to Figure 3-1.What do the two producers have a comparative advantage in?&#10;A)Paul has a comparative advantage in both wheat and corn.&#10;B)Paul has a comparative advantage in wheat, and Cliff has a comparative advantage in corn.&#10;C)Cliff has a comparative advantage in wheat, and Paul has a comparative advantage in corn.&#10;D)Cliff has a comparative advantage in both wheat and corn.

Accepted Answer

The answer of Figure 3-1&#10;  &#10;Refer to Figure 3-1.What...

Question 35

Figure 3-1&#10;  &#10;Refer to Figure 3-1.Assume that both Paul and Cliff divide their time equally between the production of corn and wheat,and they do not trade.If they were the only producers of corn and wheat,what would the total production of wheat and corn be?&#10;A)8 bushels of wheat and 7 bushels of corn&#10;B)7 bushels of wheat and 6 bushels of corn&#10;C)6 bushels of wheat and 8 bushels of corn&#10;D)7 bushels of wheat and 7 bushels of corn

Accepted Answer

The answer of Figure 3-1&#10;  &#10;Refer to Figure 3-1.Assume...

Question 36

Figure 3-1&#10;  &#10;Refer to Figure 3-1.Assume that Cliff and Paul were both producing wheat and corn,and each was dividing their time equally between the two.Then they decide to specialize in the product they have a comparative advantage in.What would happen to the total production of corn?&#10;A)It would increase by 1 bushel.&#10;B)It would increase by 3 bushels.&#10;C)It would increase by 5 bushels.&#10;D)It would increase by 7 bushels.

Accepted Answer

The answer of Figure 3-1&#10;  &#10;Refer to Figure 3-1.Assume...

Question 37

Table 3-2&#10;  &#10;Refer to Table 3-2.What is the opportunity cost of 1 kilogram of meat for the rancher?&#10;A)4 hours of labour&#10;B)5 hours of labour&#10;C)5/4 kilograms of potatoes&#10;D)4/5 kilogram of potatoes

Accepted Answer

The answer of Table 3-2&#10;  &#10;Refer to Table 3-2.What...

Question 38

Table 3-2&#10;  &#10;Refer to Table 3-2.What does each producer have an absolute advantage in?&#10;A)The farmer has an absolute advantage in meat, and the rancher has an absolute advantage in potatoes.&#10;B)The farmer has an absolute advantage in potatoes, and the rancher has an absolute advantage in meat.&#10;C)The farmer has an absolute advantage in neither good, and the rancher has an absolute advantage in both goods.&#10;D)The farmer has an absolute advantage in potatoes, and the rancher has an absolute advantage in neither good.

Accepted Answer

The answer of Table 3-2&#10;  &#10;Refer to Table 3-2.What...

Question 39

Figure 3-1&#10;  &#10;Refer to Figure 3-1.Assume that Cliff and Paul were both producing wheat and corn,and each was dividing their time equally between the two.Then they decide to specialize in the product they have a comparative advantage in and trade 3 bushels of wheat for 3 bushels of corn.What would Cliff now be able to consume?&#10;A)4 bushels of wheat and 3 bushels of corn&#10;B)3 bushels of wheat and 4 bushels of corn&#10;C)3 bushels of wheat and 3 bushels of corn&#10;D)2 bushels of wheat and 3 bushels of corn

Accepted Answer

The answer of Figure 3-1&#10;  &#10;Refer to Figure 3-1.Assume...

Question 40

Figure 3-2&#10;  &#10;Refer to Figure 3-2.Assume that Cliff and Paul were both producing wheat and corn,and both were dividing their time equally between the two.Then they decide to specialize in the product for which they have a comparative advantage.What would happen to the production of corn?&#10;A)It would increase by 1 bushel.&#10;B)It would increase by 2 bushels.&#10;C)It would increase by 3 bushels.&#10;D)It would increase by 4 bushels.

Accepted Answer

The answer of Figure 3-2&#10;  &#10;Refer to Figure 3-2.Assume...

Question 41

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.For Jerry,what is the opportunity cost of 1 kg of cones?&#10;A)2/3 kg of ice cream&#10;B)1 kg of ice cream&#10;C)2 kg of ice cream&#10;D)3 kg of ice cream

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 42

Figure 3-2&#10;  &#10;Refer to Figure 3-2.What do the two producers have an absolute advantage in?&#10;A)Paul has an absolute advantage in both wheat and corn.&#10;B)Paul has an absolute advantage in wheat, and Cliff has an absolute advantage in corn.&#10;C)Cliff has an absolute advantage in wheat, and Paul has an absolute advantage in corn.&#10;D)Cliff has an absolute advantage in both wheat and corn.

Accepted Answer

The answer of Figure 3-2&#10;  &#10;Refer to Figure 3-2.What...

Question 43

Figure 3-4&#10;   &#10;  &#10;Refer to Figure 3-4.For Jerry,what is the opportunity cost of one bottle of beer?&#10;A)1/3 bottle of wine&#10;B)1/2 bottle of wine&#10;C)1 bottle of wine&#10;D)3 bottles of wine

Accepted Answer

The answer of Figure 3-4&#10;   &#10;  &#10;Refer...

Question 44

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.What does each of the two producers have an absolute advantage in?&#10;A)Ben has an absolute advantage in ice cream, and Jerry has an absolute advantage in cones.&#10;B)Ben has an absolute advantage in cones, and Jerry has an absolute advantage in ice cream.&#10;C)Ben has an absolute advantage in neither good, and Jerry has an absolute advantage in both goods.&#10;D)Ben has an absolute advantage in both goods, and Jerry has an absolute advantage in neither good.

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 45

Figure 3-4&#10;   &#10;  &#10;Refer to Figure 3-4.What does each of the two producers have a comparative advantage in?&#10;A)Ben has a comparative advantage in beer, and Jerry has a comparative advantage in wine.&#10;B)Ben has a comparative advantage in wine, and Jerry has a comparative advantage in beer.&#10;C)Ben has a comparative advantage in neither good, and Jerry has a comparative advantage in wine.&#10;D)Ben has a comparative advantage in both goods, and Jerry has a comparative advantage in neither.

Accepted Answer

The answer of Figure 3-4&#10;   &#10;  &#10;Refer...

Question 46

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.For Ben,what is the opportunity cost of 1 kg of ice cream?&#10;A)1/4 kg of cones&#10;B)1/2 kg of cones&#10;C)2 kg of cones&#10;D)4 kg of cones

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 47

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.For Jerry,what is the opportunity cost of 1 kg of ice cream?&#10;A)1/3 kg of cones&#10;B)1 kg of cones&#10;C)3/2 kg of cones&#10;D)2 kg of cones

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 48

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.For Ben,what is the opportunity cost of 1 kg of cones?&#10;A)1/4 kg of ice cream&#10;B)1/2 kg of ice cream&#10;C)2 kg of ice cream&#10;D)4 kg of ice cream

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 49

Figure 3-4&#10;   &#10;  &#10;Refer to Figure 3-4.For Ben,what is the opportunity cost of one bottle of wine?&#10;A)1/4 bottle of beer&#10;B)1/2 bottle of beer&#10;C)2 bottles of beer&#10;D)4 bottles of beer

Accepted Answer

The answer of Figure 3-4&#10;   &#10;  &#10;Refer...

Question 50

Figure 3-4&#10;   &#10;  &#10;Refer to Figure 3-4.What does each of the two producers have a comparative or absolute advantage in?&#10;A)Ben has a comparative advantage in wine, and Jerry has an absolute advantage in both goods.&#10;B)Ben has a comparative advantage in beer, and Jerry has an absolute advantage in both goods.&#10;C)Ben has a comparative advantage in beer, and Jerry has an absolute advantage in wine.&#10;D)Ben has a comparative advantage in wine, and Jerry has an absolute advantage in beer.

Accepted Answer

The answer of Figure 3-4&#10;   &#10;  &#10;Refer...

Question 51

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.What does each of the two producers have a comparative or absolute advantage in?&#10;A)Ben has a comparative advantage in ice cream, and Jerry has an absolute advantage in both goods.&#10;B)Ben has a comparative advantage in cones, and Jerry has an absolute advantage in ice cream.&#10;C)Ben has a comparative advantage in ice cream, and Jerry has an absolute advantage in neither good.&#10;D)Ben has a comparative advantage in ice cream, and Jerry has an absolute advantage in cones.

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 52

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.What does each of the two producers have a comparative or absolute advantage in?&#10;A)Ben has an absolute advantage in cones, and Jerry has a comparative advantage in ice cream.&#10;B)Ben has an absolute advantage in both goods, and Jerry has a comparative advantage in cones.&#10;C)Ben has an absolute advantage in ice cream, and Jerry has a comparative advantage in cones.&#10;D)Ben has an absolute advantage in neither good, and Jerry has a comparative advantage in ice cream.

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 53

Figure 3-4&#10;   &#10;  &#10;Refer to Figure 3-4.For Ben,what is the opportunity cost of one bottle of beer?&#10;A)1/2 bottle of wine&#10;B)1/4 bottle of wine&#10;C)2 bottles of wine&#10;D)4 bottles of wine

Accepted Answer

The answer of Figure 3-4&#10;   &#10;  &#10;Refer...

Question 54

Figure 3-2&#10;  &#10;Refer to Figure 3-2.What do the two producers have an absolute or comparative advantage in?&#10;A)Paul has a comparative advantage in both wheat and corn.&#10;B)Paul has an absolute advantage in wheat, and Cliff has a comparative advantage in corn.&#10;C)Cliff has a comparative advantage in wheat, and Paul has a comparative advantage in corn.&#10;D)Cliff has a comparative advantage in both wheat and corn.

Accepted Answer

The answer of Figure 3-2&#10;  &#10;Refer to Figure 3-2.What...

Question 55

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.What does each of the two producers have a comparative advantage in?&#10;A)Ben has a comparative advantage in cones, and Jerry has a comparative advantage in ice cream.&#10;B)Ben has a comparative advantage in ice cream, and Jerry has a comparative advantage in cones.&#10;C)Ben has a comparative advantage in neither good, and Jerry has a comparative advantage in both goods.&#10;D)Ben has a comparative advantage in both goods, and Jerry has a comparative advantage in neither good.

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 56

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.Suppose that Ben and Jerry have both decided to produce at point A on their production possibilities frontiers.What can we infer from this information?&#10;A)that this is not an efficient combination for neither Ben nor Jerry&#10;B)that Ben and Jerry are both allocating 1/2 their time to the production of each good&#10;C)that no other production point is as efficient for both Ben and Jerry to produce as point A&#10;D)that the two must be trading with each other

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 57

Figure 3-3&#10;Ice cream and cones are measured in kilograms.&#10;  &#10;Refer to Figure 3-3.Suppose Ben and Jerry were both producing at point A on their production possibilities frontier and then Ben decided he would be willing to trade 4 kg of cones to get 2 kg of ice cream from Jerry.If both decided to specialize in what they had a comparative advantage in and trade,what would be the gains from trade?&#10;A)1 kg of cones for Ben and 1 kg of ice cream for Jerry&#10;B)1 kg of ice cream for Ben and 1 kg of cones for Jerry&#10;C)2 kg of ice cream for Ben and 2 kg of cones for Jerry&#10;D)2 kg of ice cream for Ben and 1 kg of cones for Jerry

Accepted Answer

The answer of Figure 3-3&#10;Ice cream and cones are measured...

Question 58

Figure 3-4&#10;   &#10;  &#10;Refer to Figure 3-4.What does each of the two producers have an absolute advantage in?&#10;A)Ben has an absolute advantage in wine, and Jerry has an absolute advantage in neither good.&#10;B)Ben has an absolute advantage in beer, and Jerry has an absolute advantage in wine.&#10;C)Ben has an absolute advantage in wine, and Jerry has an absolute advantage in beer.&#10;D)Ben has an absolute advantage in neither good, and Jerry has an absolute advantage in both goods.

Accepted Answer

The answer of Figure 3-4&#10;   &#10;  &#10;Refer...

Question 59

Figure 3-4&#10;   &#10;  &#10;Refer to Figure 3-4.What does each of the two producers have a comparative or absolute advantage in?&#10;A)Ben has an absolute advantage in wine, and Jerry has a comparative advantage in neither good.&#10;B)Ben has an absolute advantage in both goods, and Jerry has a comparative advantage in beer.&#10;C)Ben has an absolute advantage in wine, and Jerry has a comparative advantage in beer.&#10;D)Ben has an absolute advantage in beer, and Jerry has a comparative advantage in wine.

Accepted Answer

The answer of Figure 3-4&#10;   &#10;  &#10;Refer...

Question 60

Figure 3-4&#10;   &#10;  &#10;Refer to Figure 3-4.For Jerry,what is the opportunity cost of one bottle of wine?&#10;A)1/3 bottle of beer&#10;B)1/2 bottle of beer&#10;C)1 bottle of beer&#10;D)3 bottles of beer

Accepted Answer

The answer of Figure 3-4&#10;   &#10;  &#10;Refer...

Question 61

Table 3-3&#10;  &#10;Refer to Table 3-3.How could Helen and Carolyn both benefit?&#10;A)by Helen specializing in dresses and Carolyn specializing in quilts&#10;B)by Helen specializing in neither good and Carolyn specializing in both goods&#10;C)by Helen specializing in quilts and Carolyn specializing in dresses&#10;D)by Helen specializing in both goods and Carolyn specializing in neither good

Accepted Answer

The answer of Table 3-3&#10;  &#10;Refer to Table 3-3.How...

Question 62

Figure 3-5&#10;These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.&#10;  &#10;Refer to Figure 3-5.What should Ginger and Fred specialize in?&#10;A)Ginger should specialize in tap shoes, and Fred should specialize in ballet slippers.&#10;B)Ginger should specialize in both goods, and Fred should specialize in neither good.&#10;C)Ginger should specialize in ballet slippers, and Fred should specialize in tap shoes.&#10;D)Ginger should specialize in neither good, and Fred should specialize in both goods.

Accepted Answer

The answer of Figure 3-5&#10;These graphs illustrate the production possibilities...

Question 63

Figure 3-5&#10;These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.&#10;  &#10;Refer to Figure 3-5.What is the opportunity cost of one pair of tap shoes for Fred?&#10;A)1/5 pair of ballet slippers&#10;B)1/3 pair of ballet slippers&#10;C)3/5 pair of ballet slippers&#10;D)5/3 pairs of ballet slippers

Accepted Answer

The answer of Figure 3-5&#10;These graphs illustrate the production possibilities...

Question 64

Table 3-3&#10;  &#10;Refer to Table 3-3.What is the opportunity cost of one dress for Carolyn?&#10;A)1/5 quilt&#10;B)1 quilt&#10;C)4 quilts&#10;D)5 quilts

Accepted Answer

The answer of Table 3-3&#10;  &#10;Refer to Table 3-3.What...

Deck 3: Interdependence and the Gains from Trade