Question : 51) The United States one of the richest nations in : 1228142

 

 

51) The United States is one of the richest nations in the world,

A) so it does not need to trade with poor nations in order to achieve any gains from trade.

B) so it might not have a comparative advantage in producing any goods.

C) but it can still benefit from specialization and trade.

D) so it must have a comparative advantage in the production of all goods.

E) so it must have an absolute advantage in the production of all goods.

 

52) Specialization and trade make a country better off because with trade the country can consume at a point

A) outside its production possibilities frontier.

B) inside its production possibilities frontier.

C) on its production possibilities frontier.

D) on its trading partner’s production possibilities frontier.

E) inside its trading partner’s production possibilities frontier.

53) By specializing and trading, a country is able to

A) obtain the absolute advantage in the goods it produces.

B) consume but not to produce combinations of goods that lie beyond its production possibilities frontier.

C) produce but not to consume combinations of goods that lie beyond its production possibilities frontier.

D) both produce and consume combinations of goods that lie beyond its production possibilities frontier.

E) neither produce nor consume combinations of goods that lie beyond its production possibilities frontier.

 

54) With no international trade, a country ________ consume at a point outside of its PPF; with international trade, a country ________ consume at a point outside of its PPF.

A) cannot; can

B) can; cannot

C) can; can

D) cannot; cannot

E) None of the above answers is correct because the presence or absence of international trade has nothing to do with where a country consumes in comparison to its PPF.

 

55) In terms of a nation’s production possibilities frontier, what impact does international trade have?

A) International trade shifts the nation’s production possibilities frontier outward.

B) International trade shifts the nation’s production possibilities frontier inward.

C) International trade allows the nation to consume at a point outside its production possibilities frontier.

D) International trade shifts the production possibilities frontier outward for the goods that are exported and inward for the goods that are imported.

E) International trade shifts the production possibilities frontier outward for the goods that are imported and inward for the goods that are exported.

56) If a nation has an absolute advantage in producing a good, then it

A) will have a comparative advantage in producing that good.

B) will have no need to trade with other nations.

C) will always specialize in that good.

D) might or might not have a comparative advantage in producing that good.

E) will not have a comparative advantage in producing that good.

 

57) In one hour John can produce 20 loaves of bread or 8 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true?

A) Phyllis has a comparative advantage in producing bread.

B) John has a comparative advantage in producing cakes.

C) Phyllis has an absolute advantage in both goods.

D) John has an absolute advantage in both goods.

E) Phyllis has a comparative advantage in producing both cakes and bread.

 

58) “Comparative advantage” is defined as a situation in which one person can produce

A) more of all goods than another person.

B) more of a good than another person.

C) a good for a lower dollar cost than another person.

D) a good for a lower opportunity cost than another person.

E) all goods for lower opportunity costs than another person.

59) Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Scott’s opportunity cost of producing 1 taco is

A) 1/2 of a pizza.

B) 1 pizza.

C) 2 pizzas.

D) 20 pizzas.

E) 2 tacos.

 

60) Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Cindy’s opportunity cost of producing 1 taco is

A) 3/4 of a pizza.

B) 1 pizza.

C) 30 pizzas.

D) 40 pizzas.

E) 1 1/3 tacos.

 

61) Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,

A) Cindy has a comparative advantage at producing tacos.

B) Scott has a comparative advantage at producing tacos.

C) Cindy and Scott have the same comparative advantage in producing tacos.

D) neither Cindy nor Scott has a comparative advantage in producing tacos.

E) Cindy and Scott have the same comparative advantage in producing pizzas.

62) In one hour John can produce 20 loaves of bread or 16 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true?

A) Phyllis has a comparative advantage in producing bread.

B) John has a comparative advantage in producing cakes.

C) Phyllis has an absolute advantage in both goods.

D) John has an absolute advantage in both goods.

E) Phyllis has a comparative advantage in producing both cakes and bread.