Question :
51.Suppose an American worker can make 20 pairs of shoes : 1378981
51.Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. A Canadian worker, on the other hand, can produce 10 pairs of shoes or grow 20 apples per day. Canada has the ____________ opportunity cost of a pair of shoes than the United States, so: ____________.
A. higher; Canada should specialize in shoe production
B. lower; Canada should specialize in apple production
C. higher; Canada should specialize in apple production
D. lower; Canada should specialize in shoe production
52.Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. A Bangladeshi worker, on the other hand, can produce 100 pairs of gloves or grow 200 radishes per day. The opportunity cost of one pair of gloves is:
A. 6 radishes for the United States and 2 radishes for Bangladesh.
B. 60 radishes for the United States and 20 radishes for Bangladesh.
C. 1/6 radishes for the United States and ½ radishes for Bangladesh.
D. 6,000 radishes for the United States and 2,000 radishes for Bangladesh.
53.Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. A Bangladeshi worker, on the other hand, can produce 100 pairs of gloves or grow 200 radishes per day. Using the concept of absolute advantage, which of the following statements is true?
A. The United States has the absolute advantage in the production of both gloves and radishes.
B. The United States does not have the absolute advantage in the production of either gloves or radishes.
C. The United States has the absolute advantage in the production of gloves, but not radishes.
D. The United States has the absolute advantage in the production of radishes, but not gloves.
54.Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. A Bangladeshi worker, on the other hand, can produce 100 pairs of gloves or grow 200 radishes per day. Using the concepts of absolute and comparative advantage, we can say that:
A. the United States has the comparative advantage in the production of both gloves and radishes.
B. the United States has the comparative advantage in neither the production of gloves nor radishes.
C. the United States has the comparative advantage in the production of gloves only.
D. the United States has the comparative advantage in the production of radishes only.
55.Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. A Bangladeshi worker, on the other hand, can produce 100 pairs of gloves or grow 200 radishes per day. Using the concepts of advantage and trade, we can say that:
A. the opportunity cost of one pair of gloves is lower for the United States than Bangladesh, therefore the United States has a comparative advantage in glove production.
B. the opportunity cost of one pair of gloves is higher for the United States than Bangladesh, therefore the United States has a comparative advantage in radish production.
C. the opportunity cost of one pair of gloves is the same for both the United States and Bangladesh, therefore no comparative advantage exists.
D. the opportunity cost of one pair of gloves is the same for both the United States and Bangladesh, therefore they both have the comparative advantage in glove production.
56.Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. A Bangladeshi worker, on the other hand, can produce 100 pairs of gloves or grow 200 radishes per day. Which of the following statements is true?
A. Bangladesh should specialize in glove production since it possesses the comparative advantage in glove production.
B. Bangladesh should specialize in radish production since it possesses the comparative advantage in radish production.
C. Bangladesh should only produce gloves since it has the absolute advantage in glove production.
D. Bangladesh should only produce radishes since it has the absolute advantage in radish production.
57.Suppose an American worker can make 100 chairs or catch 1,000 fish per day. A Chilean worker, on the other hand, can produce 40 chairs or catch 400 fish per day. Which of the following statements is true?
A. The United States has the comparative advantage in chair production.
B. Chile has the comparative advantage in chair production.
C. Both the United States and Chile have a comparative advantage in chair production.
D. Neither the United States nor Chile has a comparative advantage in chair production.
58.Suppose an American worker can make 100 chairs or catch 1000 fish per day. A Chilean worker, on the other hand, can produce 40 chairs or catch 400 fish per day. The United States possesses a(n) _______________ advantage in chair production, but not a(n) ______________ advantage in fish production.
A. absolute; comparative
B. comparative; absolute
C. absolute; absolute
D. comparative; comparative
59.Suppose an American worker can make 100 chairs or catch 1,000 fish per day. A Chilean worker, on the other hand, can produce 40 chairs or catch 400 fish per day. The United States has an absolute advantage in the production of both fish and chairs. This means that:
A. the United States should produce both goods and not trade with Chile.
B. the United States should produce only fish and trade with Chile to get chairs.
C. the United States should take advantage of Chile by trading with them.
D. the United States can produce more fish and chairs than Chile, given the same amount of workers.
60.When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:
A. has an absolute advantage at producing that good.
B. has a comparative advantage at producing that good.
C. has no reason to trade with others.
D. is efficient.
