Practice Exam 1, Part #2

An economy's production possibilities frontier is also its consumption possibilities frontier

The most obvious benefit of specialization and trade is that they allow us to

Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible?

Which goods will a nation typically import?

When two individuals produce efficiently and then make a mutually beneficial trade based on comparative advantage,

In an hour, Mateo can wash 2 cars or mow 1 lawn. Tyler can wash 3 cars or mow 1 lawn. Who has the comparative advantage in which good?

Alexis is a lawyer. She bills her clients $100 an hour for her services. She can also mow her lawn in 30 minutes. She can hire someone to mow her lawn who takes an hour. Of the following prices, which is the highest Alexis would pay someone to mow her lawn?

Trade between countries

Based on the above table, Aruba's opportunity cost of 1 cooler is ___ radios. Meanwhile, Iceland's opportunity cost of 1 cooler is ___ radios.

Based on the table in the previous question, which of the following represents Aruba's production possibility frontier? The unit on both axes are units/hour.