NAME: ECON 101
ECON 101
CHAPTER #20
QUESTION 1
1. The slope of the production possibility frontier is determined by the
_________ of expanding production of one good, measured by how much of
the other good would be lost.
6.662 points
QUESTION 2
1. When one nation can produce a product at lower cost relative to
another nation, it is said to have a(n)____________________in producing that
product.
6.667 points
QUESTION 3
1. Colombia produces coffee with less labor and land than any other country; it therefore
necessarily has:
both a comparative and absolute advantage in coffee production.
an absolute advantage and comparative disadvantage in coffee production.
an absolute advantage in coffee production
a comparative advantage in coffee production.
6.667 points
QUESTION 4
1. The idea behind comparative advantage reflects the possibility that one party:
may be able to produce something at a lower dollar cost than another party.
with an absolute advantage in producing two different may export goods
both of those goods to the other party.
may be able to produce something at a lower opportunity cost than another
party.
may be able to produce everything relatively more efficiently than another party.
6.667 points
QUESTION 5
1. Alternate Outputs from One Day's Labor Input:
USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12
yards of textiles.
From the data, the USA:
should export textiles to India.
has a comparative advantage in the production of textiles.
has an absolute advantage over India in the production of textiles.
has an absolute advantage over India in the production of wheat.
6.667 points
QUESTION 6
1. Suppose that Canada can produce 100,000 hockey sticks or 10,000
gallons of maple syrup in a typical workweek, while Germany can produce
90,000 hockey sticks or 10,000 gallons of maple syrup in a typical workweek.
From these numbers, we can conclude:
Germany has an absolute advantage in the production of maple syrup.
Canada has an absolute advantage in the production of maple syrup.
Germany has a comparative advantage in the production of hockey sticks.
Canada has a comparative advantage in the production of hockey sticks.
6.667 points
QUESTION 7
1. The underlying reason why trade benefits both sides of a trading
arrangement is rooted in the concept of.
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NAME: ECON 101 ECON 101 CHAPTER #20 QUESTION 1 1. The slope of the production possibility frontier is
determined by the _________ of expanding production of one good, measured by how much of the other good would be lost. specialization opportunity cost relative advantage absolute advantage 6.662 points QUESTION 2 1. When one nation can produce a product at lower cost relative to another nation, it is said to have a(n)____________________in producing that product. absolute advantage relative advantage production efficiency economy of scale 6.667 points QUESTION 3 1. Colombia produces coffee with
less labor and land than any other country; it therefore necessarily has: both a comparative and absolute advantage in coffee production. an absolute advantage and comparative disadvantage in coffee production. an absolute advantage in coffee production a comparative advantage in coffee production. 6.667 points QUESTION 4 1. The idea behind comparative advantage reflects the possibility that one party: may be able to produce something at a lower dollar cost than another party. NAME: ECON 101
with an absolute advantage in producing two different may export goods both of those goods to the other party. may be able to produce something at a lower opportunity cost than another party. may be able to produce everything relatively more efficiently than another party. 6.667 points QUESTION 5 1. Alternate Outputs from One Day's Labor Input: USA: 12 bushels of wheat or 3 yards ...
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