Question 1

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.A bundle of goods that Country B could not make would be:

Accepted Answer

A)   (400 iPods, 250 tablets) .
B)   (300 iPods, 500 tablets) .
C)   (200 iPods, 750 tablets) .
D)   (100 iPods, 1,000 tablets) .E) A) and B)
F) A) and D)

Question 2

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

Accepted Answer

A)   (1,000 iPods, 500 tablets) .
B)   (500 iPods, 500 tablets) .
C)   (500 iPods, 250 tablets) .
D)   (750 iPods, 150 tablets) .E) A) and C)
F) All of the above

Question 3

Assume that the opportunity cost for Germany to produce a jet is 50 cars.If Germany is producing on its production Possibility Frontier,some possible combinations of output for Germany could be:

Accepted Answer

A)   (1,000 jets, 5,000 cars)  and (900 jets, 10,000 cars) .
B)   (1,000 jets, 5,000 cars)  and (900 jets, 15,000 cars) .
C)   (2,500 jets, 2,000 cars)  and (2,300 jets, 20,000 cars) .
D)   (2,500 jets, 2,000 cars)  and (2,300 jets, 3,000 cars) .E) C) and D)
F) A) and C)

Question 4

1 to PPF3? A)  More workers B)  Better printing press technology C)  A desire to read more books D)  Better sewing technology" class="answers-bank-image d-inline" rel="preload" > Consider a society facing the production possibilities curves in the figure shown.What is the most likely cause of a society moving from PPF1 to PPF3?

Accepted Answer

A)   More workers
B)   Better printing press technology
C)   A desire to read more books
D)   Better sewing technologyE) B) and C)
F) All of the above

Question 5

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

Accepted Answer

A)   3/20 watermelons.
B)   1/20 watermelons.
C)   1/40 watermelons.
D)   1/30 watermelons.E) A) and B)
F) All of the above

Question 6

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?

Accepted Answer

A)   The United States has the absolute advantage in the production of both shoes and apples.
B)   Canada has the absolute advantage in the production of both shoes and apples.
C)   The United States has the absolute advantage in the production of shoes and Canada has the absolute advantage in the production of apples.
D)   Canada has the absolute advantage in the production of shoes and the United States has the absolute advantage in the production of apples.E) A) and B)
F) A) and C)

Question 7

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

Accepted Answer

A)   400 bushels of apples.
B)   300 bushels of apples.
C)   200 bushels of apples.
D)   100 bushels of apples.E) A) and B)
F) None of the above

Question 8

Consider the production possibilities frontier displayed in the figure shown.A society should choose to produce:

Accepted Answer

A)   at point C because it is the safest.
B)   at point B because it represents the most the society can produce.
C)   at any point that produce some of each good.
D)   at any point on the frontier rather than inside it.E) A) and B)
F) A) and C)

Question 9

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

Accepted Answer

A)   (400 iPods, 2,000 tablets) .
B)   (300 iPods, 500 tablets) .
C)   (200 iPods, 1,500 tablets) .
D)   (100 iPods, 2,000 tablets) .E) A) and D)
F) None of the above

Question 10

Consider the production possibilities frontier displayed in the figure shown.A society faced with this curve currently:

Accepted Answer

A)  cannot obtain point B.
B)  can only obtain point C.
C)  can only obtain point D or point A.
D)  cannot obtain point C.E) B) and C)
F) C) and D)

Question 11

When two countries specialize and trade with one another total production:

Accepted Answer

A)   remains unchanged but consumption rises.
B)   increases, but only if comparative advantage exists.
C)   may increase, depending on trade relations.
D)   and consumption remain unchanged.E) A) and B)
F) A) and C)

Question 12

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

Accepted Answer

A)   (500 iPods, 500 tablets) .
B)   (500 iPods, 400 tablets) .
C)   (500 iPods, 300 tablets) .
D)   (500 iPods, 200 tablets) .E) A) and C)
F) None of the above

Question 13

When a country loses its comparative advantage in the production of a good it:

Accepted Answer

A)   should stop trading and become self-sufficient.
B)   will gain the comparative advantage in the production of another good.
C)   will become a loser in trade in the long run.
D)   will still have the absolute advantage in the production of the good.E) A) and B)
F) A) and C)

Question 14

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.Suppose Country B decides to specialize in tomatoes,and Country A specializes in bananas.What terms of trade would both countries agree to? One tomato for:

Accepted Answer

A)   one banana
B)   two bananas
C)   four bananas
D)   six bananasE) All of the above
F) A) and B)

Question 15

Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Considering both country's production possibilities frontiers,we can infer that Country A will specialize in:

Accepted Answer

A)  trucks,and be willing to accept no less than 5 cars for each truck.
B)  cars,and be willing to give no more than 5 cars for each truck.
C)  trucks,and be willing to accept no more than 5 cars for each truck.
D)  cars,and be willing to give no less than 5 cars for each truck.E) A) and D)
F) B) and C)

Question 16

Suppose that,given the same number of workers,the United States can produce two times as many TVs or 20 times as many potatoes as Chile.Which of the following statements is true?

Accepted Answer

A)   Chile should trade with the United States for potatoes because the United States has an absolute advantage in the production of potatoes.
B)   Chile should trade with the United States for TVs because the United States has an absolute advantage in the production of potatoes.
C)   The United States can benefit from trading TVs but not potatoes with Chile.
D)   The United States has absolute advantage in producing both goods.E) A) and B)
F) C) and D)

Question 17

The concepts of specialization and gains from trade can be applied to:

Accepted Answer

A)   international trade.
B)   why globalization has expanded recently.
C)   consumer decisions.
D)   household decisions.E) B) and D)
F) A) and B)

Question 18

Consider the production possibilities frontier displayed in the figure shown.Which points are efficient and attainable with existing resources?

Accepted Answer

A)  Only point B.
B)  Only point A.
C)  Points A and D.
D)  Points A,C,and D.E) None of the above
F) C) and D)

Question 19

The improvement in outcomes that occurs when specialized producers exchange goods and services is called:

Accepted Answer

A)   gains from trade.
B)   absolute advantage.
C)   comparative advantage.
D)   specialization.E) None of the above
F) C) and D)

Question 20

Consider the production possibilities frontier in the figure shown.As more and more cars are produced the opportunity cost of producing more cars:

Accepted Answer

A)   decreases.
B)   stays the same.
C)   increases.
D)   decreases then increases.E) A) and B)
F) B) and C)

Exam 2: Specialization and Exchange

Consider the production possibilities frontier displayed in the figure shown.Which points are efficient and attainable with existing resources?

Correct Answer
verified

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

Correct Answer
verified

When a country loses its comparative advantage in the production of a good it:

Correct Answer
verified

Consider the production possibilities frontier displayed in the figure shown.A society should choose to produce:

Correct Answer
verified

Correct Answer
verified

Consider the production possibilities frontier displayed in the figure shown.A society faced with this curve currently:

Correct Answer
verified

Consider the production possibilities frontier in the figure shown.As more and more cars are produced the opportunity cost of producing more cars:

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Suppose that,given the same number of workers,the United States can produce two times as many TVs or 20 times as many potatoes as Chile.Which of the following statements is true?

Correct Answer
verified

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

Correct Answer
verified

Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Considering both country's production possibilities frontiers,we can infer that Country A will specialize in:

Correct Answer
verified

The improvement in outcomes that occurs when specialized producers exchange goods and services is called:

Correct Answer
verified

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

Correct Answer
verified

When two countries specialize and trade with one another total production:

Correct Answer
verified

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.A bundle of goods that Country B could not make would be:

Correct Answer
verified

The concepts of specialization and gains from trade can be applied to:

Correct Answer
verified

Consider a society facing the production possibilities curves in the figure shown.What is the most likely cause of a society moving from PPF₁ to PPF₃?

Correct Answer
verified

Assume that the opportunity cost for Germany to produce a jet is 50 cars.If Germany is producing on its production Possibility Frontier,some possible combinations of output for Germany could be:

Correct Answer
verified

Exam 2: Specialization and Exchange

Consider the production possibilities frontier displayed in the figure shown.Which points are efficient and attainable with existing resources?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a country loses its comparative advantage in the production of a good it:

Correct AnswerverifiedShow Answer

Consider the production possibilities frontier displayed in the figure shown.A society should choose to produce:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Consider the production possibilities frontier displayed in the figure shown.A society faced with this curve currently:

Correct AnswerverifiedShow Answer

Consider the production possibilities frontier in the figure shown.As more and more cars are produced the opportunity cost of producing more cars:

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose that,given the same number of workers,the United States can produce two times as many TVs or 20 times as many potatoes as Chile.Which of the following statements is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Considering both country's production possibilities frontiers,we can infer that Country A will specialize in:

Correct AnswerverifiedShow Answer

The improvement in outcomes that occurs when specialized producers exchange goods and services is called:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When two countries specialize and trade with one another total production:

Correct AnswerverifiedShow Answer

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.A bundle of goods that Country B could not make would be:

Correct AnswerverifiedShow Answer

The concepts of specialization and gains from trade can be applied to:

Correct AnswerverifiedShow Answer

Consider a society facing the production possibilities curves in the figure shown.What is the most likely cause of a society moving from PPF1 to PPF3?

Correct AnswerverifiedShow Answer

Assume that the opportunity cost for Germany to produce a jet is 50 cars.If Germany is producing on its production Possibility Frontier,some possible combinations of output for Germany could be:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Consider a society facing the production possibilities curves in the figure shown.What is the most likely cause of a society moving from PPF₁ to PPF₃?

Correct Answer
verified

Correct Answer
verified