Question :
71.People will choose to specialize and trade if:
A. they can acquire : 1378983
71.People will choose to specialize and trade if:
A. they can acquire the goods they want at a lower cost than it will cost them to make the good themselves.
B. they can acquire the goods they want at a higher cost than it will cost them to make the good themselves.
C. they can acquire the goods they want from someone who is willing to trade with them.
D. they can acquire the goods they want from a capitalistic system of exchange.
72.People often choose to specialize and trade because:
A. it allows them to enjoy more goods than they can create on their own.
B. they can consume a bundle of goods beyond their own production possibilities.
C. it allows them to get to a point beyond their own production possibilities frontier.
D. All of these statements are true.
73.Two countries will choose to specialize and trade only if:
A. the terms of trade fall between their opportunity costs for producing the goods on their own.
B. the opportunity costs are the same between the two nations.
C. the opportunity costs are astronomically high for producing the goods on their own.
D. one country possesses the absolute advantage in both goods, but the comparative advantage in only one good.
74.When a country loses its comparative advantage in the production of a good:
A. it should stop trading and become self-sufficient.
B. it will gain the comparative advantage in the production of another good.
C. it will become a loser in trade in the long run.
D. it will still have the absolute advantage in the production of the good.
75.If France is capable of producing either cheese or wine or some combination of those two products, then:
A. France should produce the one it is more efficient at producing.
B. France should produce the one for which it has a lower opportunity cost.
C. France should produce the one for which is has a higher opportunity cost.
D. France should remain self-sufficient if it has the absolute advantage in the production of both.
76.If Spain is capable of producing either tapas or soccer balls or some combination of those two products, then:
A. Spain should produce the good it has an absolute advantage in producing.
B. Spain should produce the good it has a comparative advantage in producing.
C. Spain should remain self-sufficient if it can produce both efficiently.
D. Spain should trade only if it possesses the absolute advantage in the production of both goods.
77.Assume for Germany that the opportunity cost to produce a jet is 50 cars. Some possible combinations of output for Germany could be:
A. (1,000 jets, 5,000 cars) and (900 jets, 10,000 cars).
B. (1,000 jets, 5,000 cars) and (900 jets, 15,000 cars).
C. (2,500 jets, 2,000 cars) and (2,300 jets, 20,000 cars).
D. (2,500 jets, 2,000 cars) and (2,300 jets, 3,000 cars).
78.
Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to trade four trucks for every airplane. Assuming Country A specializes in airplane production, which of the following combination of goods could Country A consume?
A. (15 airplanes, 20 trucks)
B. (10 airplanes, 20 trucks)
C. (10 airplanes, 30 trucks)
D. (5 airplanes, 20 trucks)
79.
Suppose the figure shown represents the production possibilities frontier for Country A. Which of the following combination of goods could Country A consume?
A. (15 airplanes, 15 trucks)
B. (10 airplanes, 25 trucks)
C. (10 airplanes, 30 trucks)
D. (5 airplanes, 30 trucks)
80.Suppose England has a comparative advantage over the United States in producing tea. If this is true, then:
A. England should produce more tea than it needs and sell the rest to the United States.
B. England should produce a small amount of tea and buy the rest of the tea it wants from the United States.
C. England should not produce tea, and should instead buy it all from the United States.
D. the United States has nothing to gain from buying tea from England.
