Ch 11 Quiz Econ 2010

Based on the information in the accompanying graph, after the imposition of the quota, the amount of revenue collected by the government is

$0

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. If Smith and Jones devote all of their resources to producing computers, then the maximum number of computers they can produce in an hour is

16

The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, how many microwaves will be imported or exported?

2,000 Imported

An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one TV?

3 Radios

An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the most of each type that can be produced per day if each worker fully specializes according to his/her comparative advantage?

4 TVs and 10 radios

An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Jen to produce one TV?

5 Radios

The demand for microwaves in a certain country is given by: D= 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the domestic quantity demanded will be ______ microwaves.

5,600

If this is a closed economy, the number of TVs exchanged will be

60,000

Which of the following statements is true? A. Absolute advantage implies comparative advantage. B. Comparative advantage does not require absolute advantage. C. Absolute advantage requires comparative advantage. D. Comparative advantage requires absolute advantage.

B

If this is a closed economy, what will the price of a bike be? A. $20 B. $40 C. $100 D. $140

C

Suppose Xin and Zander work in a bakery making pies and cakes. Suppose it takes Xin 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Zander 2 hours to make a pie and 1.5 hours to make a cake. Which of the following statements is correct? A. Xin has a comparative advantage in pies, and Zander has an absolute advantage in pies. B. Xin has a comparative and absolute advantage in pies. C. Zander has a comparative and absolute advantage in pies. D. Zander has a comparative advantage in pies, and Xin has an absolute advantage in pies.

D

What is the price of cars if this were a closed economy? A. $6,000/car B. $8,000/car C. $10,000/car D. $14,000/car

D

The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy opens to trade while the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then the winners are

Domestic producers and import permit holders

The United States imports shoes from third world countries. This means that if the U.S. economy were closed, the domestic price of goods would be _____ the world price of shoes.

Greater than

Taiwan exports tools to the United States. Consumers in Taiwan will probably pay a _____ price for tools with free trade than they would with a closed economy.

Higher

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, ______ should devote more time to calculators because his ______.

Jones; opportunity costs are lower

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. If Smith and Jones are dividing their time efficiently and producing more than 10 computers and fewer than 120 calculators per hour, then Smith will ______ and Jones will ______.

Produce only computers; split his time between computers and calculators

Why is there often resistance to free trade?

Specific groups may be hurt by free trade.

One means of enforcing a quota is to require importers to

obtain a license.