Question 1

Can a country gain comparative advantage in some product? Can a country lose that advantage?

Accepted Answer

The answer is yes,in both cases.The avai...

Question 2

Refer to the graph below.  The graph indicates that as more eggs are produced, the marginal opportunity cost of:

Accepted Answer

A)  both eggs and rye increases.
B)  eggs increases while the marginal opportunity cost of rye remains constant.
C)  eggs increases while the marginal opportunity cost of rye decreases.
D)  eggs decreases while the marginal opportunity cost of rye remains constant.E) None of the above
F) B) and C)

Question 3

Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas. In Brazil, one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?

Accepted Answer

A)  Columbia has a comparative advantage in producing papayas but not bananas.
B)  Columbia has a comparative advantage in producing papayas and bananas.
C)  These countries would increase combined consumption if they specialized and traded.
D)  These countries cannot gain from trading.E) B) and D)
F) C) and D)

Question 4

The production possibility table below is for growing broccoli and asparagus in a 320-square-foot garden in one season.   Praductinn Passibility  Braccoli  Asparapus 30020181026030\begin{array}{l}	ext { Praductinn Passibility }\\begin{array} { | c | c | } \hline 	ext { Braccoli } & 	ext { Asparapus } \\hline 30 & 0 \\hline 20 & 18 \\hline 10 & 26 \\hline 0 & 30 \\hline\end{array}\end{array} Praductinn Passibility  Braccoli 3020100​ Asparapus 0182630​​​   Which curve on the graph on the right corresponds to this table?

Accepted Answer

A)  I
B)  II
C)  III
D)  IV E) C) and D)
F) B) and D)

Question 5

According to Adam Smith, individuals are directed to do those things for which they have a comparative advantage by:

Accepted Answer

A)  their self-interest.
B)  corporate management.
C)  government policy.
D)  the educational system.E) None of the above
F) B) and C)

Question 6

Does the production possibilities curve tell us if goods are distributed efficiently in a society? Explain.

Accepted Answer

No.The production possibilities curve on...

Question 7

What kind of relationship exists between the price of gas and the quantity demanded for gas if the quantity demanded for gas falls when the price of gas increases?

Accepted Answer

A)  Direct
B)  Inverse
C)  Normal
D)  PerverseE) A) and B)
F) B) and D)

Question 8

Productive efficiency is not achieved at any point inside the production possibility curve.

Accepted Answer

A) True 
 B)False

Question 9

Laissez-faire is an economic:

Accepted Answer

A)  theorem because it is based on deductive analysis of a model that is based on assumptions.
B)  theorem because it is the logical conclusion of a model with carefully stated relationships among variables.
C)  precept because it is based on a model and normative judgments about the relevance of the model to the real world.
D)  precept because it is the logical conclusion of a model with widely held assumptions.E) A) and B)
F) None of the above

Question 10

If no resources had a comparative advantage in the production of any good, the production possibility curve would be:

Accepted Answer

A)  bowed outward.
B)  bowed inward.
C)  a horizontal line.
D)  a downward-sloping straight line.E) A) and B)
F) B) and C)

Question 11

Evan can grow both roses and carnations in his garden. His production possibility table is shown below. If he is currently producing 110 roses, his opportunity cost of producing 40 more roses is:   Number d roses  Number of carnatims 015560135110109150781800\begin{array} { | c | c | } \hline 	ext { Number d roses } & 	ext { Number of carnatims } \\hline 0 & 155 \\hline 60 & 135 \\hline 110 & 109 \\hline 150 & 78 \\hline 180 & 0 \\hline\end{array} Number d roses 060110150180​ Number of carnatims 155135109780​​

Accepted Answer

A)  20 carnations
B)  26 carnations
C)  31 carnations
D)  78 carnations E) B) and D)
F) A) and B)

Question 12

An inverse relationship occurs between two variables when as one goes:

Accepted Answer

A)  up the other goes up.
B)  up the other goes down.
C)  up the other does not change.
D)  down the other goes down.E) All of the above
F) B) and C)

Question 13

The slope of a line is the:

Accepted Answer

A)  value on the vertical axis divided by the value on the horizontal axis.
B)  value on the horizontal axis divided by the value on the vertical axis.
C)  change in the value on the vertical axis divided by the change in the value on the horizontal axis.
D)  change in the value on the horizontal axis divided by the change in the value on the vertical axis.E) A) and B)
F) A) and D)

Question 14

A resource is said to have a comparative advantage if:

Accepted Answer

A)  it is better suited to the production of one good than to the production of an alternative good.
B)  it is equally suited to the production of all goods.
C)  its suitability to the production of one good changes as it produces more of that good.
D)  its suitability to the production of one good does not change as it produces more of that good.E) A) and B)
F) C) and D)

Question 15

The production possibility frontiers of Northland and Southland are given. Without trade, Northland produces and consumes 20 apples and 5 bananas and Southland produces and consumes 10 apples and 40 bananas. Could they increase their consumption bundle by optimizing production and trading?   Narthland  Sauthland  Agples  Bananas  Agples  Bananas 300300205202015101040015060\begin{array} { c   }  { 	ext { Narthland } } \quad\quad\quad\quad{ 	ext { Sauthland } } \\begin{array} { | c | c | c | c | } \hline 	ext { Agples } & 	ext { Bananas } & 	ext { Agples } & 	ext { Bananas } \\hline 30 & 0 & 30 & 0 \\hline 20 & 5 & 20 & 20 \\hline 15 & 10 & 10 & 40 \\hline 0 & 15 & 0 & 60 \\hline\end{array}\end{array} Narthland  Sauthland  Agples 3020150​ Bananas 051015​ Agples 3020100​ Bananas 0204060​​​

Accepted Answer

A)  No, Southland does at least as well at producing both, so it would have no incentive to trade.
B)  Yes, they could gain 75 bananas and 60 apples.
C)  Yes, they could gain up to 60 apples without losing bananas.
D)  Yes, they could gain up to 15 bananas without losing apples. E) A) and C)
F) A) and B)

Question 16

In the linear equation y = mx + b, m is the:

Accepted Answer

A)  variable on the horizontal axis.
B)  variable on the vertical axis.
C)  slope.
D)  vertical intercept.E) C) and D)
F) All of the above

Question 17

Refer to the graph below.  Productive inefficiency occurs at what point?

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) A) and B)
F) A) and C)

Question 18

If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and German workers produce half as much output per hour as Canadian workers, all else equal, it would be efficient to locate production facilities in:

Accepted Answer

A)  Germany since the cost per unit of output will be higher.
B)  Germany since the cost per unit of output will be lower.
C)  Canada since the cost per unit of output will be higher.
D)  Canada since the cost per unit of output will be lower.E) A) and C)
F) C) and D)

Question 19

Refer to the graph below.  Productive efficiency is achieved at what points?

Accepted Answer

A)  A, B, and M
B)  C, D, and N
C)  A, C, and F
D)  M, D, and EE) B) and C)
F) A) and D)

Question 20

Refer to the graph below.  Which of the shifts explains what will happen to the production possibility curve if political unrest and strikes disrupt all sectors of an economy equally?

Accepted Answer

A)  I
B)  II
C)  III
D)  IVE) B) and D)
F) C) and D)

Exam 2: The Production Possibility Model, Trade, and Globalization

Refer to the graph below. Productive inefficiency occurs at what point?

Correct Answer
verified

Can a country gain comparative advantage in some product? Can a country lose that advantage?

Correct Answer
verified
The answer is yes,in both cases.The avai...
View Answer

Correct Answer
verified

According to Adam Smith, individuals are directed to do those things for which they have a comparative advantage by:

Correct Answer
verified

If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and German workers produce half as much output per hour as Canadian workers, all else equal, it would be efficient to locate production facilities in:

Correct Answer
verified

What kind of relationship exists between the price of gas and the quantity demanded for gas if the quantity demanded for gas falls when the price of gas increases?

Correct Answer
verified

A resource is said to have a comparative advantage if:

Correct Answer
verified

Correct Answer
verified

Refer to the graph below. Which of the shifts explains what will happen to the production possibility curve if political unrest and strikes disrupt all sectors of an economy equally?

Correct Answer
verified

If no resources had a comparative advantage in the production of any good, the production possibility curve would be:

Correct Answer
verified

Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas. In Brazil, one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?

Correct Answer
verified

In the linear equation y = mx + b, m is the:

Correct Answer
verified

Does the production possibilities curve tell us if goods are distributed efficiently in a society? Explain.

Correct Answer
verified
No.The production possibilities curve on...
View Answer

The slope of a line is the:

Correct Answer
verified

Refer to the graph below. Productive efficiency is achieved at what points?

Correct Answer
verified

Correct Answer
verified

Refer to the graph below. The graph indicates that as more eggs are produced, the marginal opportunity cost of:

Correct Answer
verified

Productive efficiency is not achieved at any point inside the production possibility curve.

Correct Answer
verified

An inverse relationship occurs between two variables when as one goes:

Correct Answer
verified

Laissez-faire is an economic:

Correct Answer
verified

Exam 2: The Production Possibility Model, Trade, and Globalization

Refer to the graph below. Productive inefficiency occurs at what point?

Correct AnswerverifiedShow Answer

Can a country gain comparative advantage in some product? Can a country lose that advantage?

Correct AnswerverifiedThe answer is yes,in both cases.The avai...View AnswerShow Answer

Correct AnswerverifiedShow Answer

According to Adam Smith, individuals are directed to do those things for which they have a comparative advantage by:

Correct AnswerverifiedShow Answer

If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and German workers produce half as much output per hour as Canadian workers, all else equal, it would be efficient to locate production facilities in:

Correct AnswerverifiedShow Answer

What kind of relationship exists between the price of gas and the quantity demanded for gas if the quantity demanded for gas falls when the price of gas increases?

Correct AnswerverifiedShow Answer

A resource is said to have a comparative advantage if:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to the graph below. Which of the shifts explains what will happen to the production possibility curve if political unrest and strikes disrupt all sectors of an economy equally?

Correct AnswerverifiedShow Answer

If no resources had a comparative advantage in the production of any good, the production possibility curve would be:

Correct AnswerverifiedShow Answer

Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas. In Brazil, one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?

Correct AnswerverifiedShow Answer

In the linear equation y = mx + b, m is the:

Correct AnswerverifiedShow Answer

Does the production possibilities curve tell us if goods are distributed efficiently in a society? Explain.

Correct AnswerverifiedNo.The production possibilities curve on...View AnswerShow Answer

The slope of a line is the:

Correct AnswerverifiedShow Answer

Refer to the graph below. Productive efficiency is achieved at what points?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to the graph below. The graph indicates that as more eggs are produced, the marginal opportunity cost of:

Correct AnswerverifiedShow Answer

Productive efficiency is not achieved at any point inside the production possibility curve.

Correct AnswerverifiedShow Answer

An inverse relationship occurs between two variables when as one goes:

Correct AnswerverifiedShow Answer

Laissez-faire is an economic:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The answer is yes,in both cases.The avai...
View 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
No.The production possibilities curve on...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified