Question 1

-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table

Accepted Answer

A)   France has a comparative advantage in the production of concrete.
B)   the United States has a comparative advantage in the production of concrete.
C)   France has an absolute advantage in the production of concrete.
D)   the United States has a comparative advantage in the production of both goods.

Question 2

-Refer to the production possibilities frontier in the figure above. Suppose a country is producing at point a. A movement to point ________ means that the country ________.

Accepted Answer

A)   d; must give up 20 million capital goods
B)   e; is not operating efficiently
C)   d; gives up 10 million consumer goods
D)   b; is producing at an inefficient point

Question 3

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has ________ advantage in producing ________.

Accepted Answer

A)   an absolute; shoes
B)   a comparative; shoes
C)   an absolute; bookshelves
D)   a comparative; bookshelves

Exam 2: The Economic Problem

-Refer to the production possibilities frontier in the figure above. Suppose a country is producing at point a. A movement to point means that the country .

Correct Answer
verified

-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table

Correct Answer
verified

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has advantage in producing .

Correct Answer
verified

Exam 2: The Economic Problem

-Refer to the production possibilities frontier in the figure above. Suppose a country is producing at point a. A movement to point ________ means that the country ________.

Correct AnswerverifiedShow Answer

-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table

Correct AnswerverifiedShow Answer

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has ________ advantage in producing ________.

Correct AnswerverifiedShow Answer

-Refer to the production possibilities frontier in the figure above. Suppose a country is producing at point a. A movement to point means that the country .

Correct Answer
verified

Correct Answer
verified

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has advantage in producing .

Correct Answer
verified