FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Specialization and Exchange

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering the production possibilities frontiers of both countries, we can conclude that Country B will specialize in _____ and be willing to _____ three cars for each truck.

A) trucks; accept no fewer than
B) cars; give no more than
C) trucks; accept no more than
D) cars; give no fewer than

E) None of the above
F) A) and C)

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true?

A) The United States has a comparative advantage at producing shoes.
B) Canada has a comparative advantage at producing shoes.
C) Neither country has a comparative advantage at producing shoes.
D) Both countries have a comparative advantage at producing shoes.

E) A) and B)
F) All of the above

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

When a country loses its comparative advantage at producing a good it will:

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost of a pair of shoes is _____ for the United States than Canada, so Canada has a(n) _____ advantage at producing shoes.

Consider the production possibilities frontier displayed in the figure shown. The fact that the line slopes downward displays which economic concept?

Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to give 3 TVs to Country A for every cellphone it receives. Assuming Country A fully specializes in cellphone production, which of the following combinations of goods could Country A now consume that it could not achieve before trade?

Consider the production possibilities frontier displayed in the figure shown. If this society chooses to produce 15 watermelons, it can produce no more than:

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Which of the following is a bundle of goods that Country B could not make?

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. A bundle of goods that Country A could potentially make would be:

Consider the production possibilities frontier displayed in the figure shown. The opportunity cost of a bushel of apples is:

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?

Suppose England has a comparative advantage over the United States at producing tea. If this is true, then:

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. What are two possible consumption bundles that Country A could produce?

Suppose that a worker in Country A can make either 30 cars or 15 computers each year. Country A has 1,000 workers. Suppose a worker in Country B can make either 60 cars or 20 computers each year. Country B has 600 workers. _____ has the comparative advantage at producing cars, and _____ has a comparative advantage at producing computers.

If France is capable of producing cheese, wine, or some combination of those two, it should:

A realistic production possibilities curve is _____, while a simple production possibilities curve _____.

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering the production possibilities frontiers of both countries, we know that both would be willing to agree to which terms of trade?

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. Which of the following statements is true?

Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. For a worker in Country B, the trade-off to producing one tomato is:

Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Country B will benefit from trade if the country specializes in _____ because _____