Question :
111.What drives a country’s limits to acceptable terms of trade?
A. Their : 1378987
111.What drives a country’s limits to acceptable terms of trade?
A. Their opportunity costs
B. Whether they possess the absolute advantage in the production of a good
C. Both of these statements are true.
D. Neither of these statements is true.
112.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?
A. The opportunity cost of a truck in Country A is 30 cars.
B. The opportunity cost of a truck in Country A is 6 trucks.
C. The opportunity cost of 6 trucks in Country A is 30 cars.
D. The opportunity cost of a truck in Country A is 3 cars.
113.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?
A. The opportunity cost of a truck in Country B is 12 cars.
B. The opportunity cost of a truck in Country B is 4 trucks.
C. The opportunity cost of 6 trucks in Country B is 9 cars.
D. The opportunity cost of a truck in Country B is 3 cars.
114.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements can be said of Country A?
A. Country A has the comparative advantage in car production only.
B. Country A has the comparative advantage in truck production only.
C. Country A has the comparative advantage in car and truck production.
D. Country A does not possess the comparative advantage in either good.
115.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Assuming both countries have the same amount of resources available to them, which of the following statements is true?
A. Country A has an absolute advantage in the production of cars, and Country B has the absolute advantage in the production of trucks.
B. Country A has an absolute advantage in the production of trucks, and Country B has the absolute advantage in the production of cars.
C. Country A has the absolute advantage in the production of cars and trucks.
D. Country A has the absolute advantage in neither the production of cars nor trucks.
116.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After examining each country’s production possibilities curves, it is clear that:
A. neither will benefit from trade.
B. both can benefit from trade because absolute advantage exists.
C. both can benefit from trade because comparative advantage exists.
D. only Country A will benefit from trade.
117.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country’s production possibilities curves, it is clear that:
A. Country A should specialize in cars and Country B should specialize in trucks, and both will benefit from trade.
B. Country A should specialize in trucks and Country B should specialize in cars, and both will benefit from trade.
C. Country A will not benefit from trade.
D. Country B will lose by trading with Country A.
118.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After examining the production possibilities of each country, we can surmise that:
A. Country A’s opportunity cost of a car is lower than that of Country B, and so they should specialize in cars and trade.
B. Country A’s opportunity cost of a car is higher than that of Country B, and so they should specialize in cars and trade.
C. Country A’s opportunity cost of a car is the same as that of Country B, and so they will not benefit from trade.
D. Country A’s opportunity cost of a car does not determine a country’s decision to trade; it is absolute advantage that drives that decision.
119.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering both country’s production possibilities frontiers, we know that:
A. they will both agree to terms of trade of one truck to two cars.
B. they will both agree to terms of trade of one truck to four cars.
C. they will both agree to terms of trade of one truck to six cars.
D. they will both agree to terms of trade of one truck to eight cars.
120.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering both country’s production possibilities frontiers, we can guess that:
A. Country A will specialize in trucks, and be willing to accept no less than 5 cars for each truck.
B. Country A will specialize in cars, and be willing to give no more than 5 cars for each truck.
C. Country A will specialize in trucks, and be willing to accept no more than 5 cars for each truck.
D. Country A will specialize in cars, and be willing to give no less than 5 cars for each truck.
