211.RefertoFigure3-21.Azerbaijanhasanabsoluteadvantageintheproductionof
a.boltsandacomparativeadvantageintheproductionofbolts.
b.boltsandacomparativeadvantageintheproductionofnails.
c.nailsandacomparativeadvantageintheproductionofbolts.
d.nailsandacomparativeadvantageintheproductionofnails.
212.RefertoFigure3-21.IfUzbekistanandAzerbaijanswitchfromeachcountrydividingitstimeequallybetweentheproductionofboltsandnailstoeachcountryspendingallofitstimeproducingthegoodinwhichithasacomparativeadvantage,thentotalproductionwillincreaseby
a.5 boltsand10 nails.
b.15 bolts and 40nails.
c.20 bolts and 50nails.
d.30 bolts and 80nails.
213.RefertoFigure3-21.IfUzbekistanandAzerbaijaneachspendsallitstimeproducingthegoodinwhichithasacomparativeadvantageandtradetakesplaceatapriceof12boltsfor36nails,then
a.neitherUzbekistannorAzerbaijanwillgainfromthistrade.
b.Uzbekistanwillgainfromthistrade,butAzerbaijanwillnot.
c.Azerbaijanwillgainfromthistrade,butUzbekistanwillnot.
d.bothUzbekistanandAzerbaijanwillgainfromthistrade.
214.RefertoFigure3-21.Withouttrade,Uzbekistanproducedandconsumed12boltsand36nailsandAzerbaijanproducedandconsumed14boltsand24nails.Then,eachcountryagreedtospecializeintheproductionofthegoodinwhichithasacomparativeadvantageandtrade16boltsfor38nails.Asaresult,Uzbekistangained
a.2boltsand2 nailsandAzerbaijangained2boltsand18nails.
b.4boltsand2 nailsandAzerbaijangained2boltsand14nails.
c.14boltsand38nailsandAzerbaijangained16boltsand42nails.
d.16boltsand38nailsandAzerbaijangained16boltsand38nails.
Figure3-22
AliceandBetty’sProductionPossibilitiesinone8hourday.
Alice’sProductionPossibilitiesFrontierBetty’sProductionPossibilitiesFrontier
215.RefertoFigure3-22.WhatareAliceandBetty’sopportunitycostsof1pizza?
a.Alice’sopportunitycostof1pizzais1/2ofapitcheroflemonadeandBetty’sopportunitycostof1pizzais2/3ofapitcheroflemonade.
b.Alice’sopportunitycostof1pizzais1pitcheroflemonadeandBetty’sopportunitycostof1pizzais3pitchersoflemonade.
c.Alice’sopportunitycostof1pizzais2pitchersoflemonadeandBetty’sopportunitycostof1pizzais1.5pitchersoflemonade.
d.Alice’sopportunitycostof1pizzais400pitchersoflemonadeandBetty’sopportunitycostof1pizzais450pitchersoflemonade.
216.RefertoFigure3-22.WhatareAliceandBetty’sopportunitycostsof1pitcheroflemonade?
a.Alice’sopportunitycostof1pitcheroflemonadeis1/2ofapizzaandBetty’sopportunitycostof1pitcheroflemonadeis2/3ofapizza.
b.Alice’sopportunitycostof1pitcheroflemonadeis2pizzasandBetty’sopportunitycostof1pitcheroflemonadeis1.5pizzas.
c.Alice’sopportunitycostof1pitcheroflemonadeis10pizzasandBetty’sopportunitycostof1pitcheroflemonadeis10pizzas.
d.Alice’sopportunitycostof1pitcheroflemonadeis200pizzasandBetty’sopportunitycostof1pitcheroflemonadeis300pizzas.
217.RefertoFigure3-22.Whichofthefollowingstatementsiscorrectregardingabsoluteadvantage?
a.Alicehasanabsoluteadvantageintheproductionofbothlemonadeandpizzas.
b.Bettyhasanabsoluteadvantageintheproductionofbothlemonadeandpizzas.
c.AlicehasanabsoluteadvantageintheproductionofpizzaswhileBettyhasanabsoluteadvantageintheproductionoflemonade.
d.AlicehasanabsoluteadvantageintheproductionoflemonadewhileBettyhasanabsoluteadvantageintheproductionofpizzas.
218.RefertoFigure3-22.Whichofthefollowingstatementsiscorrectregardingcomparativeadvantage?
a.Alicehasacomparativeadvantageintheproductionofbothlemonadeandpizzas.
b.Bettyhasacomparativeadvantageintheproductionofbothlemonadeandpizzas.
c.AlicehasacomparativeadvantageintheproductionofpizzaswhileBettyhasacomparativeadvantageintheproductionoflemonade.
d.AlicehasacomparativeadvantageintheproductionoflemonadewhileBettyhasacomparativeadvantageintheproductionofpizzas.
219.RefertoFigure3-22.WhichofthefollowingpriceswouldresultinanmutuallyadvantageoustradeforAliceandBetty?
a.100pizzasfor100pitchersoflemonade
b.100pizzasfor125pitchersoflemonade
c.100pizzasfor180pitchersoflemonade
d.100pizzasfor220pitchersoflemonade
Table3-31
LaborHoursNeededtoMake1Poundof:
Amount
Producedin40hours
Meat
Potatoes
Meat
Potatoes
Farmer
8hours/pound
5hours/pound
5pounds
8pounds
Rancher
4hours/pound
10hours/pound
10pounds
4pounds
220.RefertoTable3-31.Forthefarmer,theopportunitycostof1poundofmeatis
a.0.625poundofpotatoes.
b.1.6poundsofpotatoes.
c.5poundsofpotatoes.
d.8poundsofpotatoes.
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