Question :
Table 2-5
One Cell Phone
Lumber (per board foot)
: 1388117
Table 2-5
One Cell Phone
Lumber (per board foot)
Estonia
40 hours
8 hours
Finland
16 hours
4 hours
Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
21) Refer to Table 2-5. What is Finland’s opportunity cost of producing one cell phone?
A) 0.25 board feet of lumber
B) 4 board feet of lumber
C) 12 board feet of lumber
D) 16 board feet of lumber
22) Refer to Table 2-5. What is Estonia’s opportunity cost of producing one board foot of lumber?
A) 0.2 cell phones
B) 5 cell phones
C) 8 cell phones
D) 32 cell phones
23) Refer to Table 2-5. What is Finland’s opportunity cost of producing one board foot of lumber?
A) 0.25 cell phones
B) 4 cell phones
C) 12 cell phones
D) 16 cell phones
24) Refer to Table 2-5. Estonia has a comparative advantage in the production of
A) both products.
B) lumber.
C) cell phones.
D) neither product.
25) Refer to Table 2-5. Finland has a comparative advantage in the production of
A) both products.
B) lumber.
C) cell phones.
D) neither product.
26) Refer to Table 2-5. If the two countries specialize and trade, who should export lumber?
A) There is no basis for trade between the two countries.
B) Estonia
C) Finland
D) They should both be exporting lumber.
27) Refer to Table 2-5. If the two countries specialize and trade, who should export cell phones?
A) There is no basis for trade between the two countries.
B) Estonia
C) Finland
D) They should both be importing cell phones.
28) If the best lawyer in town is also the best at operating a word processor, then according to economic reasoning, this person should
A) split her time evenly between being a lawyer and a word processor.
B) specialize in being a lawyer because its opportunity cost is lower.
C) should pursue the activity she enjoys more.
D) specialize in being a work processor because it is more capital-intensive.
29) Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because of all of the following except
A) her tattoos are highly esteemed by tattoo lovers who are willing to pay very high prices.
B) for her, this is the most lucrative way to purchase the products that she wants to consume.
C) her opportunity cost of pursuing another career is very low.
D) she obviously has a comparative advantage in tattoo art.
30) As job opportunities for women and the wages those jobs pay have increased, the opportunity cost of doing housework has ________, so many families have chosen to hire specialists in households chores, such as cleaning services and lawn care services, because the cost of these specialists is ________ than the cost of the wife (or husband) performing those chores.
A) increased; higher
B) increased; lower
C) decreased; higher
D) decreased; lower
