Lesson 2 Quiz
B
Table 1 We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Holland. If we were to do this, measuring milk along the horizontal axis, then A. the slope of England's production possibilities frontier would be -10/4 and the slope of Holland's production possibilities frontier would be -4/3. B. the slope of England's production possibilities frontier would be -4/10 and the slope of Holland's production possibilities frontier would be -3/4. C. the slope of England's production possibilities frontier would be 10/4 and the slope of Holland's production possibilities frontier would be 4/3. D. the slope of England's production possibilities frontier would be 4/10 and the slope of Holland's production possibilities frontier would be 3/4.
A
Table 2 Assume that Brad and Theresa each has 60 minutes available. If each person spends all his or her time producing the good in which he or she has a comparative advantage, then total production is A. 10 bushels of wheat and 5 pounds of beef B. 6 bushels of wheat and 6 pounds of beef. C. 10 bushels of wheat and 6 pounds of beef. D. 6 bushels of wheat and 5 pounds of beef.
D
Table 2 At which of the following prices would both Brad and Theresa gain from trade with each other? A. 12 bushels of wheat for 6 pounds of beef B. 12 bushels of wheat for 12 pounds of beef C. Brad and Theresa could not both gain from trade with each other at any price. D. 12 bushels of wheat for 8 pounds of beef
B
Table 2 Brad has a comparative advantage in the production of A. wheat and Theresa has a comparative advantage in the production of beef. B. beef and Theresa has a comparative advantage in the production of wheat. C. both goods and Theresa has a comparative advantage in the production of neither good. D. neither good and Theresa has a comparative advantage in the production of both goods.
D
Table 2 Brad has an absolute advantage in the production of A. wheat and Theresa has an absolute advantage in the production of beef. B. beef and Theresa has an absolute advantage in the production of wheat. C. both goods and Theresa has an absolute advantage in the production of neither good. D. neither good and Theresa has an absolute advantage in the production of both goods.
C
Table 2 Brad should specialize in the production of A. wheat and Theresa should specialize in the production of beef. B. both goods and Theresa should specialize in the production of neither good. C. beef and Theresa should specialize in the production of wheat. D. neither good and Theresa should specialize in the production of both goods.
B
Table 2 What is Brad's opportunity cost of producing one pound of beef? A. 5/6 bushel of wheat B. 6/5 bushels of wheat C. 3/5 bushels of wheat D. 5/3 bushels of wheat
A
Table 3 Assume that England and France each has 40 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is A. 24 units of cheese and 15 units of wine B. 48 units of cheese and 30 units of wine C. 40 units of cheese and 20 units of wine D. 8 units of cheese and 10 units of wine
A
Table 4 Which of the following combinations of wheat and beef could Andrea produce in one 8-hour day? A. 7 bushels of wheat and 15 pounds of beef B. 16 bushels of wheat and 32 pounds of beef C. 9 bushels of wheat and 25 pounds of beef D. 10 bushels of wheat and 13 pounds of beef
D
Table 5 Finland's opportunity cost of producing 1 unit of ham is A. 3/2 dozen eggs. This is lower than Denmark's opportunity cost. B. 2/3 dozen eggs. This is higher than Denmark's opportunity cost. C. 3/2 dozen eggs. This is higher than Denmark's opportunity cost. D. 2/3 dozen eggs. This is lower than Denmark's opportunity cost.
C
Table 6 Assume that the farmer and the rancher each has 24 labor hours available. If each person spends all his time producing the good in which he has a comparative advantage, then total production is A. 4 pounds of pork and 6 pounds of tomatoes. B. 6 pounds of pork and 6 pounds of tomatoes. C. 6 pounds of pork and 8 pounds of tomatoes. D. 4 pounds of pork and 8 pounds of tomatoes.
A
Table 6 The opportunity cost of 1 pound of pork for the farmer is A. 2 pounds of tomatoes. B. 1/2 hour of labor. C. 2 hours of labor. D. 1/2 pound of tomatoes.
B
Table 6 The rancher has a comparative advantage in the production of A. neither good. B. Correct! pork. C. tomatoes. D. both goods.
B
Table 6 The rancher has an absolute advantage in the production of A. both goods. B. pork. C. neither good. D. tomatoes.
D
Table 7 At which of the following prices, if any, can India and Indonesia both gain from trade? A. 1/3 units of bananas per unit of rice. B. 1/5 units of bananas per unit of rice. C. None of the above. D. 3/5 units of bananas per unit of rice.
A
When a person has a comparative advantage in producing a good or service, the person has A. a lower opportunity cost in producing that product than someone else. an increasing marginal benefit in producing the good. B. a constant opportunity cost in producing that product. C. a higher opportunity cost in producing that product than someone else. D. a decreasing opportunity cost in producing that product.
