Econ 201 Ch.3

When a country has a comparative advantage in producing a certain good, A) the country should import that good. B) the country should produce just enough of that good for its own consumption. C) the country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good. D) None of the above is correct.

Refer to Table 3-35. Which good(s) does Denmark have an absolute advantage producing? A) both eggs and ham. B) eggs but not ham. C) ham but not eggs. D) neither ham nor eggs.

The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month. Refer to Figure 3-23. Whenever Bonovia increases its production of ham by 1 pound per month, then it must decrease its production of cheese by A) 0.75 pounds B) 0.80 pounds C) 1.00 pounds D) 1.25 pounds

Refer to Table 3-1. Assume that John and Jane each work 24 hours. What happens to total production if instead of each person spending 12 hours producing each good, Jane spends 21 hours producing wine and 3 hours producing bread and John spends 3 hours producing wine and 21 hours producing bread? A) The total production of bread and wine each rise. B) The total production of bread rises and the total production of wine falls. C)The total production of bread falls and the total production of wine rises. D) The total production of bread and wine each fall.

Refer to Figure 3-11. If the production possibilities frontier shown is for 240 hours of production, then which of the following combinations of ham and cheese could Bonovia produce in 240 hours? A) 225 pounds of ham and 140 pounds of cheese B) 280 pounds of ham and 100 pounds of cheese C) 355 pounds of ham and 80 pounds of cheese D) 330 pounds of ham and 60 pounds of cheese

Refer to Table 3-32 The opportunity costs for the US and France are as follows: A) In the US 1 million gallons of wine costs 1/2 million pounds of cheese and in France 1 million gallons of wine costs 2 million pounds of cheese. B) In the US 1 million gallons of wine costs 2 million pounds of cheese and in France 1 million gallons of wine costs 1/2 million pounds of cheese. C) In the US 1 million pounds of cheese costs 1/2 million gallons of wine and in France 1 million pounds of cheese costs 2 million gallons of wine. D) In the US 1 million pounds of cheese costs 16 million gallons of wine and in France 1 million pounds of cheese costs 8 million gallons of wine.

Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to trade, A) Belarus should export linen to Russia. B) Russia should export linen to Belarus. C) trading linen would provide no net advantage to either country. D) Without additional information about opportunity costs, this question cannot be answered.

For a self-sufficient producer, the production possibilities frontier A) is the same as the consumption possibilities frontier. B) is greater than the consumption possibilities frontier. C) is less than the consumption possibilities frontier. D) is always a straight line.

The most obvious benefit of specialization and trade is that they allow us to A) work more hours per week than we otherwise would be able to work. B) consume more goods than we otherwise would be able to consume. C) spend more money on goods that are beneficial to society, and less money on goods that are harmful to society. D) consume more goods by forcing people in other countries to consume fewer goods.

Refer to Table 3-32 The US has a comparative advantage in the production of A) wine. B) cheese. C) both wine and cheese. D) neither wine nor cheese.

Refer to Table 3-3. Which of the following combinations of cheese and wine could France produce in 40 hours? A) 2 units of cheese and 20 units of wine B) 4 units of cheese and 15 units of wine C) 6 units of cheese and 5 units of wine D) 8 units of cheese and 20 units of wine

Refer to Table 3-35. Which good(s) does Finland have an absolute advantage producing? A) both eggs and ham. B) eggs but not ham. C) ham but not eggs. D) neither ham nor eggs.

Refer to Figure 3-23. For Bonovia, what is the opportunity cost of a pound of cheese? A) 0.8 pounds of ham B) 1.25 pounds of ham C) 8 pounds of ham D) 16 pounds of ham

Goods produced abroad and sold domestically are called A) exports B) imports C) exchange rates D) opportunity costs

Refer to Table 3-35. Finland's opportunity cost of producing 1 unit of ham is A) 3/2 dozen eggs. This is higher than Denmark's opportunity cost. B) 3/2 dozen eggs. This is lower than Denmark's opportunity cost. C) 2/3 dozen eggs. This is higher than Denmark's opportunity cost. D) 2/3 dozen eggs. This is lower than Denmark's opportunity cost.

Refer to Table 3-32 France has an absolute advantage in the production of A) wine B) cheese C) both wine and cheese D) neither wine nor cheese

Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on the United States' production possibilities frontier? A) (200 airplanes, 5,000 cars) and (150 airplanes, 4,000 cars) B) (200 airplanes, 12,500 cars) and (150 airplanes, 15,000 cars) C) (300 airplanes, 15,000 cars) and (200 airplanes, 25,000 cars) D) (300 airplanes, 25,000 cars) and (200 airplanes, 40,000 cars)

Refer to Figure 3-23. The nation of Cropitia has a comparative advantage over Bonovia in producing ham if A) Cropitia can produce more than 400 pounds of ham per month. B) Cropitia can produce more than 320 pounds of cheese per month. C) Cropitia's opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese. D) Cropitia's opportunity cost of producing a pound of ham is greater than 0.8 pounds of cheese.

A professor spends 10 hours per day giving lectures and writing papers. For the professor, a graph that shows his various possible mixes of output (lectures given per day and papers written per day) is called his A) line of tastes. B) trade-off curve. C) production possibilities frontier. D) consumption possibilities frontier.