Question :       11) In the above table, for Mary the opportunity : 1226376

11) In the above table, for Mary the opportunity cost of producing a dress is ________ and the opportunity cost for Mark of producing a dress is ________.

A) 1 1/2 jackets; 2/3 of a jacket

B) 1 1/2 jackets; 2 1/2 jackets

C) 1 1/4 jackets; 1/2 of a jacket

D) 1 jacket; 1 jacket

E) 1 dress; 1 dress

12) A country has a comparative advantage in the production of a good if it can

A) produce more of the good than another country.

B) produce more of the good most efficiently.

C) produce the good on and remain on its production possibilities frontier.

D) tradeoff producing the good for another good.

E) produce the good at the lowest opportunity cost.

13) Having a comparative advantage means a nation can

A) benefit from trade.

B) produce at a higher opportunity cost.

C) produce more of the good.

D) produce without incurring an opportunity cost.

E) produce the good at a point beyond its PPF.

14) When a person has a comparative advantage in producing a good or service, the person has

A) a higher opportunity cost in producing that product than someone else.

B) a constant opportunity cost in producing that product.

C) a decreasing opportunity cost in producing that product.

D) a lower opportunity cost in producing that product than someone else.

E) an increasing marginal benefit in producing the good.

15) Which of the following best describes comparative advantage?

A) being able to produce more output than any other country

B) using the fewest number of resources to produce a given amount of output

C) having the largest number of resources compared to other countries

D) forgoing the fewest units of one product to produce a unit of another product

E) It is the same as absolute advantage.

16) Which of the following is correct about comparative advantage?

A) Some countries will have a comparative advantage in everything.

B) Having a comparative advantage without an absolute advantage is impossible.

C) A comparative advantage in a good means that the country can produce more of the good than any other country.

D) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country.

E) None of the above answers is correct.

17) John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,

A) John cannot benefit from trade with Allen.

B) Allen cannot benefit from trade with John.

C) John has a comparative advantage in pizza.

D) John has an absolute advantage in pizza.

E) Allen has a comparative advantage in pizza.

18) Alice and Gene work in the mailroom, sorting and delivering mail. In order for them to benefit from specialization and trade, Alice must

A) be able to both sort and deliver faster than Gene.

B) be equally productive in both sorting and delivering.

C) have a comparative advantage in both sorting and delivering.

D) have a comparative advantage in one task and Gene must have a comparative advantage in the other task.

E) be equally productive as Gene in both sorting and delivering.

19) When one person’s opportunity cost of producing a good is lower than another person’s opportunity cost of producing the same good, it is called

A) an absolute advantage.

B) a comparative advantage.

C) specialization.

D) production possibilities.

E) a trade off.

20) For country Gamma the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?

A) Gamma

B) Beta

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

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

E) More information is needed to determine which of the two nations has the comparative advantage.