Question 1

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Accepted Answer

Willy has a comparative advantage in carrots because he can produce more carrots per hour than Blythe.

Question 2

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.Based on the table,Willy's opportunity cost of 1 apple is

Accepted Answer

Willy can produce 3 apples in one hour, or 2 carrots in one hour. Therefore, his opportunity cost of producing 1 apple is 2/3 of a carrot.

Question 3

Table 3.2
-Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Rose's opportunity cost of producing 1 coconut is

Accepted Answer

Rose's opportunity cost of producing 1 coconut is the amount of fish that she could have produced instead of producing that 1 coconut. According to the table, Rose can produce 3 fish in one hour or 1 coconut in one hour. Therefore, the opportunity cost of producing 1 coconut is 3 fish/1 coconut = 1/3 fish per coconut.

Question 4

Suppose that in the time it takes for him to bake a cake,Bob can produce 5 pairs of jeans.In the time it takes for Joe to bake a cake,he can produce 8 pairs of jeans.In this example,who has the comparative advantage in baking a cake?

Accepted Answer

Comparative advantage is determined by the opportunity cost of producing one good over another. In this case, Bob can produce 5 pairs of jeans in the same amount of time it takes him to bake a cake, while Joe can only produce 8 pairs of jeans. Therefore, Bob has a lower opportunity cost of baking a cake, and thus has the comparative advantage in baking a cake.

Question 5

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Accepted Answer

According to the table, Blythe has a comparative advantage in apples as she has a higher hourly production rate compared to Willy. Therefore, Blythe should specialize in producing apples and trade for carrots with Willy, who has a comparative advantage in carrot production. This would result in both parties being able to maximize their production and consumption of both goods.

Question 6

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Accepted Answer

The answer of  
Table 3.1
-Table 3.1 illustrates Willy and...

Question 7

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Accepted Answer

The answer of  
Table 3.1
-Table 3.1 illustrates Willy and...

Question 8

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.Based on the table,Blythe's opportunity cost of 1 apple is

Accepted Answer

The answer of  
Table 3.1
-Table 3.1 illustrates Willy and...

Question 9

Suppose Bob can produce more jeans than Joe in a day.Bob has ________ advantage over Joe in producing jeans.

Accepted Answer

Bob's ability to produce more jeans than Joe in a day indicates that Bob has an absolute advantage in producing jeans. Absolute advantage refers to the ability of an individual, company, or country to produce a good or service at a lower cost per unit than competitors. Comparative advantage, on the other hand, involves producing goods at a lower opportunity cost, which is not specified in the scenario provided.

Question 10

Suppose that in the time it takes for him to bake a cake,Bob can produce 5 pairs of jeans.In the time it takes for Joe to bake a cake,he can produce 8 pairs of jeans.In this example,who has the absolute advantage in baking a cake?

Accepted Answer

Absolute advantage refers to the ability of a party to produce a good or service more efficiently than its competitors. The information provided only discusses the opportunity cost of baking a cake in terms of producing jeans for Bob and Joe, not their efficiency or productivity in baking cakes specifically.

Question 11

Table 3.2
-Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Sharon's opportunity cost of producing 1 coconut is

Accepted Answer

To calculate opportunity cost, we need to find out how many fish Sharon would have to give up to produce 1 coconut. We can see from the table that Sharon produces 4 coconuts per hour or 3/4 of a coconut per 15 minutes. In the same 15 minutes, she could have produced 2 fish. Therefore, her opportunity cost of producing 1 coconut is giving up 2 fish, which is equal to 1 1/3 fish per coconut.

Question 12

The ability of one person or nation to produce a good at a lower resource cost than another is called a(n)

Accepted Answer

Absolute advantage refers to the ability of a person or nation to produce a good using fewer resources than another.

Question 13

The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n)

Accepted Answer

Comparative advantage refers to the ability of a person or nation to produce a good at a lower opportunity cost than another. It is based on the concept of opportunity cost, which is the value of the next best alternative forgone.  Absolute advantage refers to the ability of a person or nation to produce a good using fewer resources than another. Market advantage and specialization advantage are not commonly used terms in economics.

Question 14

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Accepted Answer

The answer of  
Table 3.1
-Table 3.1 illustrates Willy and...

Question 15

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.Based on the table,Willy's opportunity cost of 1 carrot is

Accepted Answer

The answer of  
Table 3.1
-Table 3.1 illustrates Willy and...

Question 16

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that: if Willy and Blythe choose to specialize and trade,then

Accepted Answer

The answer of  
Table 3.1
-Table 3.1 illustrates Willy and...

Question 17

Table 3.2
-Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Rose's opportunity cost of producing 1 fish is

Accepted Answer

The answer of  
Table 3.2
-Consider two individuals,Rose and Sharon,who...

Question 18

Suppose that in the time it takes for him to bake a cake,Bob can produce 5 pairs of jeans.In the time it takes for Joe to bake a cake,he can produce 8 pairs of jeans.In this example,Bob has ________ advantage over Joe in cake baking.

Accepted Answer

Bob has a comparative advantage in cake baking because he can produce jeans at a lower opportunity cost than Joe. For Bob, the opportunity cost of producing a cake is lower than Joe because he only gives up producing 5 pairs of jeans, while Joe gives up producing 8 pairs of jeans to bake a cake.

Question 19

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Accepted Answer

Absolute advantage refers to the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group. Without the specific data from Table 3.1, we cannot determine the exact numbers, but the correct conclusion based on the options provided is that Willy has an absolute advantage in producing both goods if the choice suggests this is the conclusion drawn from the table.

Question 20

Table 3.1
-Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.Based on the table,Blythe's opportunity cost of 1 carrot is

Accepted Answer

Blythe can produce 4 carrots in an hour or 12 apples in an hour. Therefore, her opportunity cost of 1 carrot is 12/4 = 3 apples. Willy's opportunity cost of 1 carrot is 2 apples. Since Blythe's opportunity cost is lower, she has a comparative advantage in producing carrots. The best choice would be for Blythe to produce carrots while Willy produces apples, leading to a more efficient allocation of resources.

Quiz 3: Exchange and Markets

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.Based on the table,Willy's opportunity cost of 1 apple is

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Rose's opportunity cost of producing 1 coconut is

Suppose that in the time it takes for him to bake a cake,Bob can produce 5 pairs of jeans.In the time it takes for Joe to bake a cake,he can produce 8 pairs of jeans.In this example,who has the comparative advantage in baking a cake?

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.Based on the table,Blythe's opportunity cost of 1 apple is

Suppose Bob can produce more jeans than Joe in a day.Bob has ________ advantage over Joe in producing jeans.

Suppose that in the time it takes for him to bake a cake,Bob can produce 5 pairs of jeans.In the time it takes for Joe to bake a cake,he can produce 8 pairs of jeans.In this example,who has the absolute advantage in baking a cake?

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Sharon's opportunity cost of producing 1 coconut is

The ability of one person or nation to produce a good at a lower resource cost than another is called a(n)

The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n)

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.Based on the table,Willy's opportunity cost of 1 carrot is

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that: if Willy and Blythe choose to specialize and trade,then

Table 3.2 -Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Rose's opportunity cost of producing 1 fish is

Suppose that in the time it takes for him to bake a cake,Bob can produce 5 pairs of jeans.In the time it takes for Joe to bake a cake,he can produce 8 pairs of jeans.In this example,Bob has ________ advantage over Joe in cake baking.

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.From the table,we can conclude that

Table 3.1 -Table 3.1 illustrates Willy and Blythe's hourly production for apples and carrots.Based on the table,Blythe's opportunity cost of 1 carrot is