Refer to table 3-23. the farmer has a comparative advantage in the production of

1. Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

​

Labor Hours Needed to Make 1 Pound of

Pounds Produced in 24 Hours

Meat

Potatoes

Meat

Potatoes

Farmer

6

4

4

6

Rancher

3

8

8

3

Refer to Table 3-7. Which of the following combinations of meat and potatoes could the farmer produce in 24 hours?

a.

1 pounds of meat and 5 pounds of potatoes.

b.

3 pounds of meat and 2 pounds of potatoes.

c.

1 pound of meat and 8 pounds of potatoes.

d.

2 pounds of meat and 2 pounds of potatoes.

1 points

Question 7

1.

The production possibilities frontier illustrates

a.

the combinations of output that an economy should produce.

b.

the combinations of output that an economy should consume.

c.

the combinations of output that an economy can produce.

d.

All of the above are correct.

1 points

Question 8

1.

Table 3-15

​

Labor Hours Needed to Make 1 Pound of

Amount Produced in 40 Hours

Meat

Potatoes

Meat

Potatoes

Farmer

8 hours/pound

5 hours/pound

5 pounds

8 pounds

Rancher

4 hours/pound

10 hours/pound

10 pounds

4 pounds

​

Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is

a.

5 pounds of meat and 4 pounds of potatoes.

b.

7.5 pounds of meat and 6 pounds of potatoes.

c.

6 pounds of meat and 7.5 pounds of potatoes.

d.

10 pounds of meat and 8 pounds of potatoes.

1 points

Question 9

Table 3-8 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

​

Labor Hours Needed to Make 1 Unit of

Number of Units Produced in 24 Hours

Cheese

Bread

Cheese

Bread

England

2

3

12

8

Spain

3

6

8

4

Refer to Table 3-8. Which of the following combinations of cheese and bread could England not produce in 24 hours?

a.

8 units of cheese and 3 units of bread.

b.

7 units of cheese and 2 units of bread.

c.

6 units of cheese and 4 units of bread.

d.

5 units of cheese and 3 units of bread.

1 points

Question 10

1.

A production possibilities frontier is a straight line when

a.

an economy is interdependent and engaged in trade instead of self-sufficient.

b.

the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.

c.

the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.

d.

the rate of tradeoff between the two goods being produced is constant.

1 points

Question 11

1.

Table 3-23 Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.

​

Labor Hours Needed to Make 1 Pound of

Pounds Produced in 24 Hours

Pork

Tomatoes

Pork

Tomatoes

Farmer

6

3

4

8

Rancher

4

4

6

6

Refer to Table 3-23. The farmer has a comparative advantage in the production of

a.

tomatoes.

b.

both goods.

c.

neither good.

d.

pork.

1 points

Question 12

1.

Table 3-33 Chris and Tony’s Production Opportunities

Tomatoes

Pasta Sauce

Chris

10 lbs

300 jars

Tony

14 lbs

280 jars

Refer to Table 3-33 Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. Which of the following prices would result in a mutually advantageous trade between Chris and Tony?

a.

1 lb. of tomatoes for 23 jars of sauce

b.

1 lb. of tomatoes for 33 jars of sauce

c.

1 lb. of tomatoes for 27 jars of sauce

d.

.Both a and b are correct.

1 points

Question 13

1.

Table 3-37 Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.

Labor Hours Needed to Make 1

Cooler

Radio

Aruba

2

5

Iceland

1

4

Refer to Table 3-37. Aruba should export

a.

both goods and import neither good.

b.

coolers and import radios.

c.

radios and import coolers.

d.

neither good and import both goods.

Question 17

1.

Table 3-21 Assume that Jamaica and Norway can switch between producing coolers and producing radios at a constant rate. The following table shows the number of coolers or number of radios each country can produce in one day.

Output Produced in One Day

Coolers

Radios

Jamaica

12

6

Norway

24

3

Refer to Table 3-21. At which of the following prices would both Jamaica and Norway gain from trade with each other?

a.

1 radio for 1 cooler

b.

1 radio for 4 coolers

c.

1 radio for 10 coolers

d.

Jamaica and Norway would both gain from trade at all of the above prices.

1 points

Question 18

1.

Table 3-12 Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.

​

​

Minutes Needed to

Number of Computers Set Up or Tested in a 40-Hour Week

Set Up 1 Computer

Test 1 Computer

Computers Set Up

Computers Tested

Barb

48

?

50

40

Jim

30

40

80

60

​

Refer to Table 3-12. Which of the following points would not be on Barb's production possibilities frontier, based on a 40-hour week?

a.

(30 computers set up, 16 computers tested)

b.

(25 computers set up, 20 computers tested)

c.

(8 computers set up, 32 computers tested)

d.

(0 computers set up, 40 computers tested)

1 points

Question 19

1.

Consider two individuals — Marquis and Serena — each of whom would like to wear sweaters and eat tasty food. The gains from trade between Marquis and Serena are most obvious in which of the following cases?

a.

Marquis is very good at knitting sweaters and at cooking tasty food, but Serena’s skills in both of these activities are very poor.

b.

Marquis’s skills are such that he can produce only sweaters, and Serena’s skills are such that she can produce only tasty food.

c.

Marquis’s cooking and knitting skills are very poor, and Serena’s cooking and knitting skills are also very poor.

d.

Marquis and Serena both are very good at cooking tasty food, but neither has the necessary skills to knit a sweater.

1 points

Question 20

1.

Table 3-7 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

​

Labor Hours Needed to Make 1 Pound of

Pounds Produced in 24 Hours

Meat

Potatoes

Meat

Potatoes

Farmer

6

4

4

6

Rancher

3

8

8

3

Refer to Table 3-7. Which of the following combinations of meat and potatoes could the farmer produce in 24 hours?

a.

2 pounds of meat and 2 pounds of potatoes.

b.

3 pounds of meat and 2 pounds of potatoes.

c.

1 pound of meat and 8 pounds of potatoes.

d.

1 pounds of meat and 5 pounds of potatoes.