Question : Table 7-3 Saddles Spurs (pairs) : 1388253

 

 

Table 7-3

 

 

Saddles

Spurs (pairs)

Mateo

75

225

Celeste

100

225

 

Mateo and Celeste produce custom saddles and spurs. Table 7-3 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.

 

11) Refer to Table 7-3.  Select the statement that accurately interprets the data in the table.

A) Mateo has an absolute advantage in making saddles and Celeste has an absolute advantage in making spurs.

B) Mateo has an absolute advantage in making spurs and Celeste has an absolute advantage in making saddles.

C) Mateo has an absolute advantage in making spurs.

D) Celeste has an absolute advantage in making saddles.

 

12) Refer to Table 7-3.  Select the statement that accurately interprets the data in the table.

A) Mateo has an absolute advantage in making saddles and spurs.

B) Celeste has an absolute advantage in making saddles and spurs.

C) Neither Mateo nor Celeste has an absolute advantage in making saddles.

D) Neither Mateo nor Celeste has an absolute advantage in making spurs.

 

 

13) Refer to Table 7-3.  Select the statement that accurately interprets the data in the table.

A) Mateo has a greater opportunity cost than Celeste for making saddles.

B) Mateo’s opportunity cost for making saddles is less than Celeste’s.

C) Celeste has a greater opportunity cost than Mateo for making saddles.

D) Mateo’s opportunity cost for making saddles and making spurs are both greater than Celeste’s.

 

 

14) Refer to Table 7-3.  Select the statement that accurately interprets the data in the table.

A) Celeste has a comparative advantage in making spurs.

B) Mateo has a comparative advantage in making spurs.

C) Celeste has a comparative advantage in making saddles and making spurs.

D) Neither Mateo nor Celeste has a comparative advantage in making spurs.

 

 

15) Refer to Table 7-3.  Select the statement that accurately interprets the data in the table.

A) Celeste has a comparative advantage in making saddles.

B) Mateo has an absolute advantage in making spurs.

C) Mateo has a comparative advantage in making saddles.

D) Mateo has a comparative advantage in making saddles and making spurs.

 

16) An economic principle that explains why people pursue different occupations is

A) absolute advantage.

B) international trade.

C) comparative advantage.

D) NAFTA.

 

 

17) Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil.  We can conclude that

A) Honduras also has an absolute advantage in producing bananas relative to Brazil.

B) Honduras has a lower opportunity cost of producing bananas relative to Brazil.

C) Brazil has an absolute disadvantage in producing bananas relative to Honduras.

D) Labor costs are higher for banana producers in Brazil than in Honduras.

 

 

18) Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia.  We can conclude that

A) Australia also has an absolute advantage in producing surfboards relative to New Zealand.

B) Australia has a lower opportunity cost of producing surfboards relative to New Zealand.

C) New Zealand has an absolute disadvantage in producing surfboards relative to Australia.

D) Labor costs are higher for surfboard producers in New Zealand than in Australia.

 

19) Whenever a buyer and a seller agree to trade, both must believe they will be made better off

A) unless the buyer resides in a different country than the seller resides in. International trade may make the buyer or seller worse off.

B) unless one party is richer than the other.

C) only if the buyer and seller live in countries with market economies.

D) whether the buyer and seller live in the same city or different countries.

 

 

20) If Norwegian workers are more productive than Albanian workers, then trade between Norway and Albania

A) cannot take place because Norwegian goods and services will be less expensive than Albanian goods and services.

B) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.

C) cannot take place until Albanian workers become more productive.

D) can take place only if Albania has an absolute advantage in producing a good or service Norwegian buyers want.