Question :
Table3-21
AssumethatJamaicaandNorwaycanswitchbetweenproducingcoolersandproducingradiosataconstantrate.Thefollowingtableshowsthenumberofcoolersornumberofradiose : 1262253
Table3-21
AssumethatJamaicaandNorwaycanswitchbetweenproducingcoolersandproducingradiosataconstantrate.Thefollowingtableshowsthenumberofcoolersornumberofradioseachcountrycanproduceinoneday.
OutputProducedinOneDay
Coolers
Radios
Jamaica
12
6
Norway
24
3
61.RefertoTable3-21.Jamaica’sopportunitycostofonecooleris
a.0.5radios,andNorway’sopportunitycostofonecooleris0.125radios.
b.0.5radios,andNorway’sopportunitycostofonecooleris8radios.
c.2radios,andNorway’sopportunitycostofonecooleris0.125radios.
d.2radios,andNorway’sopportunitycostofonecooleris8radios.
62.RefertoTable3-21.SupposeJamaicadecidestoincreaseitsproductionofradiosby12.Whatistheopportunitycostofthisdecision?
a.3coolers
b.6coolers
c.12coolers
d.24coolers
63.RefertoTable3-21.Jamaicahasanabsoluteadvantageintheproductionof
a.coolersandNorwayhasanabsoluteadvantageintheproductionofradios.
b.radiosandNorwayhasanabsoluteadvantageintheproductionofcoolers.
c.bothgoodsandNorwayhasanabsoluteadvantageintheproductionofneithergood.
d.neithergoodandNorwayhasanabsoluteadvantageintheproductionofbothgoods.
64.RefertoTable3-21.Jamaicahasacomparativeadvantageintheproductionof
a.coolersandNorwayhasacomparativeadvantageintheproductionofradios.
b.radiosandNorwayhasacomparativeadvantageintheproductionofcoolers.
c.bothgoodsandNorwayhasacomparativeadvantageintheproductionofneithergood.
d.neithergoodandNorwayhasacomparativeadvantageintheproductionofbothgoods.
65.RefertoTable3-21.Jamaicashouldspecializeintheproductionof
a.coolersandNorwayshouldspecializeintheproductionofradios.
b.radiosandNorwayshouldspecializeintheproductionofcoolers.
c.bothgoodsandNorwayshouldspecializeintheproductionofneithergood.
d.neithergoodandNorwayshouldspecializeintheproductionofbothgoods.
66.RefertoTable3-21.AssumethatJamaicaandNorwayeachhas4daysavailableforproduction.Originally,eachcountrydivideditstimeequallybetweentheproductionofcoolersandradios.Now,eachcountryspendsallitstimeproducingthegoodinwhichithasacomparativeadvantage.Asaresult,thetotaloutputofcoolersincreasedby
a.12.
b.24.
c.36.
d.48.
67.RefertoTable3-21.AssumethatJamaicaandNorwayeachhas4daysavailableforproduction.Originally,eachcountrydivideditstimeequallybetweentheproductionofcoolersandradios.Now,eachcountryspendsallitstimeproducingthegoodinwhichithasacomparativeadvantage.Asaresult,thetotaloutputofradiosincreasedby
a.3.
b.6.
c.9.
d.12.
68.RefertoTable3-21.AtwhichofthefollowingpriceswouldbothJamaicaandNorwaygainfromtradewitheachother?
a.1radiofor1cooler
b.1radiofor4coolers
c.1radiofor10coolers
d.JamaicaandNorwaywouldbothgainfromtradeatalloftheaboveprices.
69.RefertoTable3-21.JamaicaandNorwaywouldnotbeabletogainfromtradeifNorway’sopportunitycostofoneradiochangedto
a.0coolers.
b.1cooler.
c.2coolers.
d.JamaicaandNorwaycanalwaysgainfromtraderegardlessoftheiropportunitycosts.
Table3-22
AssumethatZimbabweandPortugalcanswitchbetweenproducingtoothbrushesandproducinghairbrushesataconstantrate.
MachineMinutesNeededtoMake1
Toothbrush
Hairbrush
Zimbabwe
3
10
Portugal
5
6
70.RefertoTable3-22.Zimbabwe’sopportunitycostofonehairbrushis
a.3/10toothbrushandPortugal’sopportunitycostofonehairbrushis5/6toothbrush.
b.3/10toothbrushandPortugal’sopportunitycostofonehairbrushis6/5toothbrushes.
c.10/3toothbrushesandPortugal’sopportunitycostofonehairbrushis5/6toothbrush.
d.10/3toothbrushesandPortugal’sopportunitycostofonehairbrushis6/5toothbrushes.