econ102 fundamentals b quiz

Assume Dave consumes 40 pounds of green beans and 80 pounds of corn without trade. Also, assume that Simon consumes 80 pounds of green beans and 40 pounds of corn without trade. Suppose Simon and Dave specialize and that the terms of trade are 1 pound of green beans for 1 pound of corn. If Simon sells Dave 80 pounds of green beans, then the gains from trade for Simon are ______ pounds of green beans and ______ pounds of corn with trade and specialization.

0,40

Jane's opportunity cost of producing 1 pound of corn is ______ pound(s) of green beans.

1

The terms of trade for 1 pound of green beans must lie between _____ and _____ pounds of corn.

1,4

If Giovanni produces 40 pounds of green beans and Jorge produces 80 pounds of corn, then the total amount of green bean production equals _______ and the total amount of corn production equals ______. If Giovanni and Jorge specialize in their respective low-cost good, then the total pounds of green bean production equals _______ and the total pounds of corn production equals ______.

100, 200; 160, 320

Dave's opportunity cost of producing 1 pound of green beans is ______ pound(s) of corn.

2

Giovanni's opportunity cost of producing 1 pound of green beans is ______ pound(s) of corn. Jorge's opportunity cost of producing 1 pound of green beans is ______ pound(s) of corn.

2,6

Without trade, Jake consumes 20 pounds of green beans and 80 pounds of corn, and Jane consumes 40 pounds of green beans and 40 pounds of corn. If the terms of trade are 1 pound of green beans for 3 pounds of corn, and Jake sells Jane 72 pounds of corn after specialization, then Jake consumes _______ pounds of green beans and _______ pounds of corn.

24, 88

Jake's opportunity cost of producing 1 pound of green beans is ______ pound(s) of corn. Jane's opportunity cost of producing 1 pound of green beans is ______ pound(s) of corn.

4,1

One pound of green beans costs Jake _____ pound(s) of corn. One pound of green beans costs Jane _____ pound(s) of corn.

4,1

Without trade, Jake consumes 20 pounds of green beans and 80 pounds of corn, and Jane consumes 40 pounds of green beans and 40 pounds of corn. If the terms of trade are 1 pound of green beans for 3 pounds of corn, and Jake sells Jane 72 pounds of corn, then the gains from trade for Jake are ______ pounds of green beans and ______ pounds of corn with trade and specialization.

4,8

If Dave produces 40 pounds of green beans, he can produce _______ pounds of corn.

80

Jane's production possibilities schedule demonstrates that she

Jane's production possibilities schedule demonstrates that she

Who has the comparative advantage in the production of corn?

Jorge

Who has the comparative advantage in the production of green beans?

Simon

Jake should specialize in the production of which good?

corn

Jorge should specialize in the production of which good?

corn

Giovanni should specialize in the production of which good?

green beans

If an individual has a comparative advantage in the production of a good, then this individual has the

lowest opportunity cost in the production of the good.

Specialization allows a society to produce _____________ goods.

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