Question :
91.Suppose that a worker in Country A can make either : 1378985
91.Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the comparative advantage in the production of:
A. iPods only.
B. tablets only.
C. both iPods and tablets.
D. neither iPods or tablets.
92.Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country A has the absolute advantage in the production of:
A. iPods only.
B. tablets only.
C. both iPods and tablets.
D. neither iPods or tablets.
93.Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the _______________ advantage in the production of tablets, which means they should specialize in __________________.
A. comparative; tablets
B. absolute; tablets
C. comparative; iPods
D. absolute; iPods
94.Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B’s population of workers increased to 600. Now we can say:
A. Country B now possesses the absolute advantage in the production of both goods.
B. Country B now possesses the absolute advantage in tablets only.
C. Country B now has the comparative advantage in iPod production.
D. Country B has no need to trade now.
95.Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B’s population of workers increased to 600. Which of the following statements is now true?
A. Country B’s production possibilities curve has rotated out from the x-axis.
B. Country B’s production possibilities curve has shifted straight out.
C. Country B’s production possibilities curve has shifted straight in.
D. Country B’s production possibilities are now more limited because of crowding.
96.Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Which of the following is true?
A. Country B should produce tablets and Country A should produce iPods, and they could benefit from trade.
B. Country B should produce iPods and Country A should produce tablets, and they could benefit from trade.
C. Neither country can benefit from trade since no comparative advantage exists.
D. Because Country B has the absolute advantage tablets, they should specialize in the production of tablets.
97.Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Which of the following is true?
A. The opportunity cost of 1 iPod in Country A is 2 tablets.
B. The opportunity cost of 1 tablet in Country A is 2 iPods.
C. The opportunity cost of tablets is lower in Country A than Country B.
D. The opportunity cost of 1 iPod in Country B is 2 tablets.
98.Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato in Country A is:
A. 100 bananas.
B. 20 bananas.
C. 5 bananas.
D. 4 bananas.
99.Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato in Country B is:
A. 108 bananas.
B. 18 bananas.
C. 6 bananas.
D. 3 bananas.
100.Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato is:
A. lower in Country A than Country B.
B. higher in Country A than Country B.
C. the same in both countries.
D. impossible to calculate without more information.
