Question : Table 2-13 Tammi Horace : 1387327

 

 

Table 2-13

 

 

Tammi

Horace

Dogs Groomed

20

12

Cats Bathed

10

8

 

Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.

 

 

57) Refer to Table 2-13.  Which of the following statements is true?

A) Horace has a comparative advantage in both tasks.

B) Tammi has a comparative advantage in both tasks.

C) Horace has a comparative advantage in grooming dogs and Tammi in bathing cats.

D) Horace has a comparative advantage in bathing cats and Tammi in grooming dogs.

 

 

58) For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces. Which of the following is true about the comparative advantage between the two countries?

A) Australia has the comparative advantage in surfboards.

B) Australia has the comparative advantage in boomerangs.

C) New Zealand has the comparative advantage in surfboards and boomerangs.

D) New Zealand has the comparative advantage in boomerangs.

 

 

Table 2-14

 

 

One Motorcycle

One Guitar

Ireland

20 hours

4 hours

Scotland

  8 hours

2 hours

 

Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.

 

59) Refer to Table 2-14.  Does either Ireland or Scotland have an absolute advantage and if so, in what product?

A) Scotland only has an absolute advantage in guitars.

B) Ireland only has an absolute advantage in guitars.

C) Scotland has an absolute advantage in both products.

D) Ireland only has an absolute advantage in motorcycles.

 

60) Refer to Table 2-14.  What is Ireland’s opportunity cost of producing one motorcycle?

A) 0.2 guitar

B) 5 guitars

C) 8 guitars

D) 32 guitars

 

 

61) Refer to Table 2-14.  What is Scotland’s opportunity cost of producing one motorcycle?

A) 0.25 guitar

B) 4 guitars

C) 12 guitars

D) 16 guitars

 

 

62) Refer to Table 2-14.  What is Ireland’s opportunity cost of producing one guitar?

A) 0.2 motorcycle

B) 5 motorcycles

C) 8 motorcycles

D) 32 motorcycles

 

 

63) Refer to Table 2-14.  What is Scotland’s opportunity cost of producing one guitar?

A) 0.25 motorcycle

B) 4 motorcycles

C) 12 motorcycles

D) 16 motorcycles

 

64) Refer to Table 2-14.  Ireland has a comparative advantage in the production of

A) both products.

B) guitars.

C) motorcycles.

D) neither product.

 

 

65) Refer to Table 2-14.  Scotland has a comparative advantage in the production of

A) both products.

B) guitars.

C) motorcycles.

D) neither product.

 

 

66) Refer to Table 2-14.  If the two countries specialize and trade, who should export guitars?

A) There is no basis for trade between the two countries.

B) Ireland

C) Scotland

D) They should both be exporting guitars.

 

 

 

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