Question : 39) According to comparative advantage, trade between two countries allows : 1381557

 

39) According to comparative advantage, trade between two countries allows ________ of the trading countries to allocate its resources most efficiently.

A) only the smaller

B) only the larger

C) neither

D) each

 

40) When countries specialize in producing those goods in which they have a comparative advantage, they ________ their combined output and allocate their resources ________ efficiently.

A) maximize; less

B) maximize; more

C) minimize; less

D) minimize; more

Refer to the information provided in Figure 19.1 below to answer the questions that follow.

 

 

Figure 19.1

 

41) Refer to Figure 19.1. The United States has a(n) ________ advantage in the production of soybeans and a(n) ________ advantage in the production of alfalfa.

A) comparative; absolute

B) comparative; comparative

C) absolute; absolute and comparative

D) comparative; absolute and comparative

 

42) Refer to Figure 19.1. Which of the following statements is true?

A) Only Canada can benefit from trade.

B) Only the United States will benefit from trade.

C) Trade will benefit both countries.

D) Trade will benefit neither country.

43) Refer to Figure 19.1. The opportunity cost of producing a bushel of alfalfa in Canada is

A) twice as much as that in the United States.

B) half as much as that in the United States.

C) the same as that in the United States.

D) four times as much as that in the United States.

 

44) Refer to Figure 19.1. The opportunity cost of producing a bushel of soybeans in the United States is

A) 1/2 as much as that in Canada.

B) twice as much as that in Canada.

C) 4 times as much as that in Canada.

D) the same as that in Canada.

 

45) Refer to Figure 19.1. The opportunity cost of producing a bushel of soybeans in Canada is

A) half a bushel of alfalfa.

B) 1 bushel of alfalfa.

C) 2 bushels of alfalfa.

D) zero.

 

46) Refer to Figure 19.1. The opportunity cost of producing a bushel of soybeans in the United States is

A) 300 bushels of alfalfa.

B) 2 bushels of alfalfa.

C) 1 bushel of alfalfa.

D) half a bushel of alfalfa.

Refer to the information provided in Figure 19.2 below to answer the questions that follow.

 

 

Figure 19.2

 

47) Refer to Figure 19.2. The opportunity cost of 1 ________ is 4 ________ in the United States and 1.5 ________ in England.

A) car; trucks; trucks

B) truck; cars; cars

C) car; cars; trucks

D) truck; trucks; cars

 

48) Refer to Figure 19.2. the theory of comparative advantage suggests that

A) England should export trucks and import cars.

B) England should export both trucks and cars.

C) the United States should export both trucks and cars.

D) the United States should import cars and export trucks.

 

49) Refer to Figure 19.2. The opportunity cost of 1 ________ is 0.25 ________ in the United States and 0.67 ________ in England.

A) car; trucks; trucks

B) truck; cars; cars

C) car; cars; trucks

D) truck; trucks; cars

 

50) Refer to Figure 19.2. ________ has a comparative advantage in producing ________.

A) England; trucks

B) England; cars and trucks

C) the United States; trucks

D) the United States; cars and trucks

 

51) Refer to Figure 19.2. ________ has a comparative advantage in producing ________.

A) England; cars

B) England; cars and trucks

C) the United States; cars

D) the United States; cars and trucks