Question : 21) For country North, the opportunity cost incurred when 3 : 1226377

21) For country North, the opportunity cost incurred when 3 tractors are produced is 21 watches. For country South, the opportunity cost incurred when 5 tractors are produced is 100 watches. Which country has the comparative advantage in the production of tractors?

A) North

B) South

C) Both have the comparative advantage in the production of tractors.

D) Neither country has the comparative advantage in the production of tractors.

E) More information is needed about which country has the comparative advantage in the production of watches.

22) If Country A can produce an extra plane by giving up two boats, and Country B can produce an extra plane by giving up three boats, then

A) Country A has a comparative advantage over Country B in the production of planes.

B) Country B has a comparative advantage over Country A in the production of planes.

C) the two countries have no incentive to trade with one another.

D) Country A would like to trade with B, but B cannot gain by trading with A.

E) Country A has an absolute advantage in producing planes and a comparative advantage in producing boats.

23) David takes 10 minutes to process a customer, and 20 minutes to stock the shelves. Danny takes 15 minutes to process a customer, and 15 minutes to stock the shelves. Which of the following statements is true?

A) David has an absolute advantage in performing both tasks.

B) Danny has an absolute advantage in performing both tasks.

C) David has a comparative advantage in processing customers but not in stocking shelves.

D) Danny has a comparative advantage in processing customers but not in stocking shelves.

E) Danny has a comparative advantage in processing customers and in stocking shelves.

24) Rika’s opportunity cost of producing 100 t-shirts is 50 jackets. Jeff’s opportunity cost of producing 75 t-shirts is 25 jackets. Who should specialize in jackets?

A) Rika

B) Jeff

C) neither

D) both

E) More information is needed about their production possibilities frontiers to determine who should specialize in jackets.

25) Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, Huey’s opportunity cost of producing one pound of tomatoes is

A) 1.5 pounds of potatoes.

B) 0.66 pound of potatoes.

C) 0, because he has an absolute advantage in it.

D) 0, because he has a comparative advantage in it.

E) 1.0 pound of potatoes.

26) Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, Steve has a comparative advantage in

A) both potatoes and tomatoes.

B) neither potatoes nor tomatoes.

C) potatoes.

D) tomatoes.

E) More information is needed about Huey’s comparative advantage in order to determine Steve’s comparative advantage.

27) Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, which of the following statements is correct?

A) Steve has an absolute advantage in both potatoes and tomatoes.

B) Steve has a comparative advantage in both potatoes and tomatoes.

C) Steve has an absolute advantage in potatoes only.

D) Huey has an absolute advantage in potatoes only.

E) Huey has an absolute advantage in both potatoes and tomatoes.

28) In the table above, Jack’s opportunity cost for 1 pound of food is ________ and his opportunity cost for 1 pound of clothing is ________.

A) 1 pound of clothing; 4 pounds of food

B) 1/2 of a pound of clothing; 2 pounds of food

C) 1/3 of a pound of clothing; 3 pounds of food

D) 2 pounds of clothing; 2 pounds of food

E) 1 pound of food; 1 pound of clothing

29) In the table above, Jill’s opportunity cost for 1 pound of food is ________ and her opportunity cost for 1 pound of clothing is ________.

A) 1 pound of clothing; 4 pounds of food

B) 1/2 of a pound of clothing; 2 pounds of food

C) 1/3 of a pound of clothing; 3 pounds of food

D) 2 pounds of clothing; 2 pounds of food

E) 1 pound of food; 1 pound of clothing

30) In the table above, Jack’s comparative advantage is producing ________ and Jill’s comparative advantage is producing ________.

A) clothing; food

B) clothing and food; nothing

C) nothing; clothing and food

D) food; clothing

E) clothing; clothing