ECO 201- Canvas Homework 3

Refer to Table 3-24. The opportunity cost of 1 unit of cheese for Spain is..

1/2 unit of bread

Which of the following is true: ~France has the comparative advantage in cheese and England has the comparative advantage in wine ~England has the absolute advantage in wine. ~France has the comparative advantage in wine and England has the comparative advantage in cheese ~France has the absolute advantage in cheese and thus the comparative advantage in wine

France has the comparative advantage in wine and England has the comparative advantage in cheese

If you buy a pineapple in Kentucky, then from the perspective of the Kentucky economy versus other state economies, this product is most likely a (an):

Import

Your roommate has an extra ticket to an upcoming Cats' game, which you want. You are very good at washing cars and offer to wash his car in exchange for the ticket. Unfortunately, he does not need his car washed. What is this problem called and what could solve this problem?

Mutual coincidence of wants; money.

The graph below represents the Production Possibility Frontier (PPF) for an economy that produces two goods: bicycles and lawnmowers. What is the opportunity cost of producing another lawnmower in terms of bicycles if the economy is currently producing efficiently at two and a half bicycles? (The new point would be on the X-axis at the X-intercept point.)

NOT --> 4 OR 3.5

Refer to Table 3-3. 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

NOT --> 48 units of cheese and 30 units of wine OR 8 units of cheese and 10 units of wine

Refer to Table 3-3. Which of the following combinations of cheese and wine could France produce in 40 hours?

NOT --> 8 units of cheese and 20 units of wine OR 4 units of cheese and 15 units of wine

The graph below represents the Production Possibility Frontier (PPF) for an economy that produces two goods: bicycles and lawnmowers. Which of the following is a possible explanation for the shape of the Production Possibility Frontier.

NOT --> It requires more resources (labor, raw materials, equipment,...) to produce a lawnmower than a bicycle. OR To produce an additional lawnmower, some resources (labor, raw materials, equipment,...) that were being used to produce bicycles must now be used to produce lawnmowers.

"Now that John washes all the dishes and I mow the lawn, we can finish in two-thirds the time it took when we shared both functions." This statement most clearly reflects..

The law of comparative advantage.

Refer to Figure 3-10. Both Alice and Betty ~face a constant trade-off between producing pitchers of lemonade and pizzas. ~can produce more pizzas than pitchers of lemonade if they devote all of their time to pizza production. ~would benefit from specializing in lemonade production. ~would benefit from specializing in pizza production.

face a constant trade-off between producing pitchers of lemonade and pizzas.