ECON Test 2

An individual has an absolute advantage in producing pizzas if that individual

can produce more pizzas in a given amount of time than anyone else.

The accompanying figure shows Isabella's daily production possibilities curve for dresses and skirts. Relative to point X, at point Y

fewer skirts and fewer dresses are produced.

Refer to the accompanying figure. It is efficient for this farmer to

grow 500 bushels of wheat and 250 bushels of corn.

Refer to the accompanying figure. At point D, the opportunity cost of making milk is

high because productive resources that are better suited to making movies are being used to make milk.

Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tamika 6 minutes to make a sandwich and 12 minutes to make a smoothie. What is the opportunity cost to Dan of making a sandwich?

1/3 of a smoothie

Refer to the accompanying figure. For Chris, the opportunity cost of removing one bag of trash is planting

3 bulbs.

Refer to the accompanying table. Kate's opportunity cost of making a pie is Kate: pie 60 min, cake 80 min Jullia: pie 50 min, cake 60 min

3/4 of a cake.

According to the accompanying table, Kate has the absolute advantage in making Kate: pie 60 min, cake 80 min Jullia: pie 50 min, cake 60 min

neither pies nor cakes.

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. The opportunity cost of making a calculator for Smith is ______ and for Jones it is ______. Smith: 100 calc, 10 computer Jones: 120 calc, 6 computer

0.10 computers; 0.05 computers

Refer to the accompanying table. Corey's opportunity cost of making of a pizza is delivering Corey: 12 pizza's made, 6 pizza's delivered Elena: 10 pizza's made, 15 pizza's delivered

1/2 of a pizza.

Refer to the accompanying figure. For Pat, the opportunity cost of planting one bulb is removing

1/5 of a bag of trash.

You are the Minister of Trade for a small island country with the following annual PPC: You are negotiating a trade agreement with a neighboring island with the following annual PPC: Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to give 350 coconuts to the other island in exchange for 1,300 fish. After the trade, your island has a total of ______ coconuts and ______ fish.

150; 1,300

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. If Smith and Jones each completely specialize according to their comparative advantage, then the maximum number of computers they can produce in an hour is Smith: 100 calc, 10 computer Jones: 120 calc, 6 computer

16.

If Aaliyah can produce 3 pairs of shoes per hour, while Bahjat can produce 2, then ______ has a(n) ______ advantage in producing shoes.

Aaliyah; absolute

Refer to the accompanying figure. If Pat and Chris were to specialize in the task in which each has a comparative advantage

Chris would remove trash and Pat would plant bulbs.

Which of the following is true regarding President Trump and NAFTA?

He opposed NAFTA and led renegotiations

Jamal and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The accompanying table shows the number of rooms they can each clean and the number of meals they can each cook in an hour. Which of the following is true? Jamal: 5 rooms cleaned, 4 meals cooked Alex: 3 rooms cleaned, 3 meals cooked

Jamal has a comparative advantage over Alex in cleaning.

Dent 'n' Scratch Used Cars and Trucks employs 3 salespeople. Data for their sales last month are shown in the accompanying table: Based on last month's data, ______ has an absolute advantage in selling cars and ______ has an absolute advantage in selling trucks. Kristen: 10 cars sold, 5 trucks sold Joe: 9 cars sold, 9 trucks sold Raj: 3 cars sold, 12 trucks sold

Kristen; Raj

Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather more mangoes per hour than Maryann and can also catch more fish per hour than can Maryann. Therefore

Maryann should specialize in the activity for which she has a comparative advantage.

You have noticed that your next-door neighbor, Arya, always works in the garden, and her husband, Suresh, always walks the dog. You conclude that if Suresh and Arya are efficient, then it must be the case that

Suresh has a comparative advantage in walking the dog.

The accompanying figure shows Isabella's daily production possibilities curve for dresses and skirts. The maximum number of dresses that Isabella can make in a day is represented by point

W

The accompanying figure shows Isabella's daily production possibilities curve for dresses and skirts. Of the labeled points, only ______ are attainable.

W, X, Y, Z, V, and T

Refer to the accompanying figure. The opportunity cost of making an additional salad

increases as the number of salads increases.

When Thurston catches 10 fish a day, he can gather a maximum of 40 coconuts, and when he catches 20 fish a day, he can gather a maximum of 30 coconuts. If Thurston's opportunity cost of producing each good increases as he produces more of it, and he decides to catch 30 fish a day, then the maximum number of coconuts he can gather must be

less than 20.

Production possibilities curves for large economies are generally bow-shaped because

opportunity costs tend to increase with increases in production.

Refer to the accompanying table. Based on their comparative advantage, Kate should specialize in making _______ while Julia should specialize in making _______. Kate: pie 50 min, cake 60 min Jullia: pie 60 min, cake 80 min

pies; cakes

Refer to the accompanying table. Based on their comparative advantage, Kate should specialize in making _______ while Julia should specialize in making _______. Kate: pie 60 min, cake 80 min Jullia: pie 50 min, cake 60 min

pies; cakes

Refer to the accompanying figure. The opportunity cost of producing one bushel of wheat is

½ bushel of corn.

Refer to the accompanying table. Elena's opportunity cost of delivering a pizza is making Corey: 12 pizza's made, 6 pizza's delivered Elena: 10 pizza's made, 15 pizza's delivered

2/3 of a pizza.

You are the Minister of Trade for a small island country with the following annual PPC: You are negotiating a trade agreement with a neighboring island with the following annual PPC: What's the minimum number of fish you would be willing to accept in exchange for a coconut?

3

Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. The opportunity cost of moving one miner from Mother Lode to another mine is mother Lode: 100 total tons, 25 miners Scraping Bottom: 30 total tons, 10 miners Middle Drift: 75 total tons, 15 miners

4 tons per day.

Refer to the accompanying table. Kate's opportunity cost of making a pie is Kate: pie 50 min, cake 60 min Jullia: pie 60 min, cake 80 min

5/6 of a cake.

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. The opportunity cost of making a computer for Smith is ______ and for Jones it is ______. Smith: 100 calc, 10 computer Jones: 120 calc, 6 computer

6 calculators; 4 calculators

Jamal and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The accompanying table shows the number of rooms they can each clean and the number of meals they can each cook in an hour. If Alex and Jamal work out an efficient arrangement for these two chores, then under that arrangement: Jamal: 5 rooms cleaned, 4 meals cooked Alex: 3 rooms cleaned, 3 meals cooked

Alex and Jamal each would do half of the cooking and half of the cleaning.

Suppose it takes Paul 3 hours to bake a cake and 2 hours to mow the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?

Paul has the comparative advantage in baking cakes.

Dent 'n' Scratch Used Cars and Trucks employs 3 salespeople. Data for their sales last month are shown in the accompanying table: Based on last month's data, ______ should specialize in truck sales, and ______ should specialize in car sales. Kristen: 10 cars sold, 5 trucks sold Joe: 9 cars sold, 9 trucks sold Raj: 3 cars sold, 12 trucks sold

Raj; Kristen

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?

Zander should specialize in pies, and Xin should specialize in cakes.

The United States generally has a comparative advantage in the development of technology because it has

a disproportionate share of the world's best research universities.

Points that lie beneath the production possibilities curve are

attainable but inefficient.

According to the accompanying table, Julia has the absolute advantage in making Kate: pie 60 min, cake 80 min Jullia: pie 50 min, cake 60 min

both pies and cakes.

Refer to the accompanying figure. As the production of pizza increases, the opportunity cost of producing pizza

increases.

The benefits of specialization can be used to explain why

individuals and nations benefit from trade.

Jasmine divides her time between studying physics and studying economics. Her production possibilities curve for her final grade in each class is shown in the accompanying figure. The Principle of Increasing Opportunity Cost is reflected in the fact that the opportunity cost going from 70 to 80 in economics is

lower than the opportunity cost of going from 80 to 90 in economics.

Refer to the accompanying figure. For the nation whose PPC is shown, it must be true that

some of the nation's productive resources are better suited to making milk, and some are better suited to making movies.

The textbook notes that the last time a major league batter hit .400 was in 1941. This is because

specialization by pitchers, infielders, and outfielders has made it harder for batters to hit.

Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Suppose Earth Movers & Shakers needs to fill an order for 100 tons of ore in a single day. If it has no other orders to fill that day, and it's not possible to transfer miners from one mine to another, it should mother Lode: 100 total tons, 25 miners Scraping Bottom: 30 total tons, 10 miners Middle Drift: 75 total tons, 15 miners

take 75 tons from Middle Drift and 25 tons from Mother Lode.

When a U.S. firm engages in outsourcing, it benefits ______ and harms ______.

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

he idea that tradeoffs have to be made when resources are scarce is reflected in the fact that

the production possibilities curve has a negative slope.

In a two-person, two-good economy, the gains to specialization will be larger when

there are large differences between the individuals in their opportunity costs of producing the two goods.

One concern regarding the North American Free Trade Agreement (NAFTA) was that it would lead

unskilled workers in the United States to lose their jobs.