Question :
61) Refer to Table 33-4. For trade to be advantageous : 1384519
61) Refer to Table 33-4. For trade to be advantageous to both Peru and Brazil, the number of bushels of cocoa beans that must be traded for a bale of cotton is
A) less than 2.
B) 2.
C) more than 2, but less than 6.
D) 6.
E) more than 6.
62) Refer to Table 33-5. The comparative advantage in wine is held by
A) Spain.
B) Portugal.
C) both countries.
D) neither country.
E) Insufficient information to determine the answer.
63) Refer to Table 33-5. The comparative advantage in cheese is held by
A) Spain.
B) Portugal.
C) both countries.
D) neither country.
E) Insufficient information to know.
64) Refer to Table 33-5. The opportunity cost of cheese in terms of wine is
A) 1/4 in Spain.
B) 4 in Spain.
C) 2 in each country.
D) 3/2 in Portugal.
E) 3 in Portugal.
65) Refer to Table 33-5. Once trade begins,
A) some resources will be permanently unemployed in Portugal.
B) it will be beneficial for Portugal to ban the import of cheese.
C) it will be beneficial for Spain to ban the import of wine.
D) the opportunity cost of the goods they now import will be less than when there was no trade, but for Portugal only.
E) the opportunity cost of the goods they now import will be less than when there was no trade, for both countries.
66) Refer to Figure 33-3. Starting from point A and moving to point B, Robinson Crusoe’s opportunity cost of producing each additional kilogram of coconuts is
A) increasing.
B) increasing followed by decreasing.
C) constant.
D) decreasing.
E) decreasing followed by increasing.
67) Refer to Figure 33-3. Starting from point B and moving to point A, his opportunity cost of producing each additional kilogram of bananas is
A) increasing.
B) increasing followed by decreasing.
C) constant.
D) decreasing.
E) decreasing followed by increasing.
68) Refer to Figure 33-4. Starting from point A and moving to point B, the opportunity cost of producing each additional tonne of ice is
A) increasing.
B) increasing followed by decreasing.
C) constant.
D) decreasing.
E) decreasing followed by increasing.
69) Refer to Figure 33-4. Beginning at point A on Arcticland’s production possibilities boundary, the opportunity cost of producing 10 more tonnes of fish is ________ and the opportunity cost of producing 10 more tonnes of ice is ________.
A) 5 tonnes of fish; 20 tonnes of ice
B) 5 tonnes of ice; 20 tonnes of fish
C) 20 tonnes of ice; 5 tonnes of fish
D) 10 tonnes of ice; 10 tonnes of fish
E) 0; 0
70) When two countries are specializing and trading with each other, the gains from trade will tend to be greater when
A) opportunity costs in the two countries are similar.
B) there are economies of scale in production.
C) prices rise in both countries.
D) the production possibilities boundaries shift inward.
E) comparative advantages are eliminated.
