Econ Chapter 2

The figure below shows Avery's weekly production possibilities curve for scarves.For Avery, the opportunity cost of making a red scarf is: A)1 blue scarf. B)zero. C)increasing. D)decreasing

A)1 blue scarf.

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales lastmonth are shown in this table:Based on last month's data, Larry's opportunity cost of selling a truck is selling: A)2 cars. B)1 car. C)10 cars. D)1/2 of a car

A)2 cars.

Refer to the figure below. For Chris, the opportunity cost of removing one bag oftrash is planting: A)1/25 of a bulb. B)3 bulbs C)1/3 of a bulb. D)25 bulbs

B)3 bulbs

Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make asmoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to makea smoothie. Which of the following statements is correct? A)Tracy should specialize in sandwiches and smoothies. B)Dan should specialize in sandwiches, and Tracy should specialize in smoothies. C)Dan should specialize in smoothies, and Tracy should specialize in sandwiches. D)Dan should specialize in both sandwiches and smoothies

B)Dan should specialize in sandwiches, and Tracy should specialize in smoothies.

Ginger and Maryann are lost in the jungle, where the only things to eat are mangoesand fish. Ginger can gather more mangoes per hour than Maryann and can alsocatch more fish per hour than can Maryann. Therefore: A)There are no gains to specialization and trade for Maryann. B)Maryann should specialize in the activity for which she has a comparativeadvantage. C)There are no gains to specialization and trade for Ginger D)Ginger should specialize in the activity for which she has an absolute advantage.

B)Maryann should specialize in the activity for which she has a comparativeadvantage.

The United States generally has a comparative advantage in the development oftechnology because it has: A)large amounts of natural resources. B)a disproportionate share of the world's best research universities C)patent laws, which no other country has. D)the greatest need for new technology.

B)a disproportionate share of the world's best research universities

Points that lie beneath the production possibilities curve are: A)unattainable but efficient B)attainable but inefficient C)unattainable and inefficient D)attainable and efficien

B)attainable but inefficient

Consider a graph of a production possibilities curve. If a producer is operating at aninefficient point, then that producer: A)must be at an unattainable point on the production possibilities curve. B)can produce more of one good without producing less of the other good. C)must be specializing in activities for which it has a comparative advantage. D)cannot produce more of one good without giving up some of the other good

B)can produce more of one good without producing less of the other good.

When a U.S. firm engages in outsourcing, it benefits ________ and harms________. A)the firm; the U.S. consumers of the firm's products B)the U.S. consumers of the firm's products; the firm's U.S. employees C)the U.S. consumers of the firm's products; the firm D)the U.S. consumers of the firm's products; the firm's foreign employees

B)the U.S. consumers of the firm's products; the firm's U.S. employees

Refer to the figure below. The opportunity cost of producing one bushel of corn is: A)500 bushels of wheat. B)½ of a bushel of wheat. C)2 bushels of wheat. D)250 bushels of wheat.

C)2 bushels of wheat.

Refer to the figure below. If this restaurant makes 75 salads in one hour, then what'sthe maximum number of pizzas it can make in that same hour? A)10 B)20 C)30 D)0

C)30

If Al has an absolute advantage over Beth in preparing meals, then: A)the problem of scarcity applies to Beth but not to Al. B)Al's opportunity cost of preparing a meal is lower than is Beth's. C)Al can prepare more meals in a given time period than Beth. D)it takes Al more time to prepare a meal than Beth.

C)Al can prepare more meals in a given time period than Beth.

Lou and Alex live together and share household chores. They like to cook somemeals ahead of time and eat leftovers. The table below shows the number of roomsthey can each clean and the number of meals they can each cook in an hour.If Alex and Lou work out an efficient arrangement for these two chores, then underthat arrangement: A)Alex would do all of the cleaning, while Lou would do all the cooking. B)Lou would do all of the cleaning and all of the cooking. C)Lou would do all of the cleaning, while Alex would do all of the cooking. D)Alex and Lou each would do half of the cooking and half of the cleaning

C)Lou would do all of the cleaning, while Alex would do all of the cooking.

Refer to the figure below. The opportunity cost of increasing medical care from 200to 400 units is ________ the opportunity cost of increasing medical care from 400to 600 units. A)greater than B)twice as much as C)less than D)exactly the same as

C)less than

Refer to the figure below. For Chris, the opportunity cost of planting one bulb isremoving: A)3 bags of trash. B)1/25 of a bag of trash. C)25 bags of trash. D)1/3 of a bag of trash.

D)1/3 of a bag of trash.

You are the Minister of Trade for a small island country with the following annualPPC:You are negotiating a trade agreement with a neighboring island with the followingannual PPC:Both islands specialize exclusively in the product for which they have a comparativeadvantage. You have agreed to give 350 coconuts to the other island in exchange for1,300 fish. After the trade, your island has a total of ________ coconuts and________ fish. A)500; 1,500 B)500; 1,300 C)150; 2,800 D)150; 1,300

D)150; 1,300

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales lastmonth are shown in this table:Based on last month's data, ________ should specialize in truck sales, and ________should specialize in car sales. A)Larry; Joe B)Joe; Ralph C)Larry; Ralph D)Ralph; Larry

D)Ralph; Larry

As the differences in opportunity costs between the U.S. and its trading partnersincrease, the potential gains from specialization and trade ________. A)decrease B)stay the same C)become unpredictable D)increase

D)increase

Production possibilities curves for large economies are generally bow-shapedbecause: A)as more resources are used to produce a good, those resources become lessexpensive. B)opportunity costs tend to decrease with increases in production. C)specialization gives some producers a comparative advantage. D)opportunity costs tend to increase with increases in production

D)opportunity costs tend to increase with increases in production

A graph that illustrates the maximum amount of one good that can be produced forevery possible level of production of the other good is called a(n): A)consumption possibilities curve. B)production function .C)supply curve. D)production possibilities curve.

D)production possibilities curve.