ECO QUIZ 3

Review Test Submission: Q3, Quiz 3, Chapter 3

·         Question 1

5 out of 5 points

	Figure 3-20 Canada’s Production Possibilities Frontier Mexico’s Production Possibilities Frontier Refer to Figure 3-20. Canada has an absolute advantage in the production of
	Selected Answer: a. Good Y and Mexico has an absolute advantage in the production of Good X. Answers: a. Good Y and Mexico has an absolute advantage in the production of Good X. b. both goods and Mexico has an absolute advantage in the production of neither good. c. Good X and Mexico has an absolute advantage in the production of Good Y. d. neither good and Mexico has an absolute advantage in the production of both goods.

·         Question 2

5 out of 5 points

	Figure 3-13 Peru’s Production Possibilities Frontier Refer to Figure 3-13. Suppose Peru decides to increase its production of emeralds by 2. What is the opportunity cost of this decision?
	Selected Answer: b. 60 rubies Answers: a. 120 rubies b. 60 rubies c. 30 rubies d. 40 rubies

·         Question 3

5 out of 5 points

	Table 3-24 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed to Make 1 Unit of Number of Units Produced in 40 Hours Cheese Bread Cheese Bread England 1 4 40 10 Spain 4 8 10 5 Refer to Table 3-24. England has a comparative advantage in the production of
	Selected Answer: b. cheese and Spain has a comparative advantage in the production of bread. Answers: a. neither good and Spain has a comparative advantage in the production of both goods. b. cheese and Spain has a comparative advantage in the production of bread. c. both goods and Spain has a comparative advantage in the production of neither good. d. bread and Spain has a comparative advantage in the production of cheese.

·         Question 4

5 out of 5 points

	Table 3-38 Output produced in one growing season Corn Soybeans Iowa 30 45 Nebraska 40 80 Refer to Table 3-38.  Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn or soybeans each state can produce in one growing season. From this table, we know that Nebraska has an absolute advantage in the production of
	Selected Answer: b. both goods and a comparative advantage in the production of soybeans. Answers: a. corn and a comparative advantage in the production of corn. b. both goods and a comparative advantage in the production of soybeans. c. corn and a comparative advantage in the production of soybean. d. both goods and a comparative advantage in the production of corn.

·         Question 5

5 out of 5 points

	Table 3-38 Output produced in one growing season Corn Soybeans Iowa 30 45 Nebraska 40 80 Refer to Table 3-38.  Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn or soybeans each state can produce in one growing season. Based upon the information in the table, we can determine that
	Selected Answer: a. Nebraska has an absolute advantage in both corn and soybeans. Answers: a. Nebraska has an absolute advantage in both corn and soybeans. b. Iowa has an absolute advantage in corn and Nebraska has an absolute advantage in soybeans. c. Nebraska has an absolute advantage in corn and Iowa has an absolute advantage in soybeans. d. Iowa has an absolute advantage in both corn and soybeans.

·         Question 6

5 out of 5 points

	Table 3-27 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. Labor Hours Needed to Make 1 Quantity Produced in 36 Hours Parasol Plate Parasol Plate Huang 2 6 18 6 Min 2 4 18 9 Refer to Table 3-27. At which of the following prices would both Huang and Min gain from trade with each other?
	Selected Answer: b. 15 parasols for 6 plates Answers: a. 15 parasols for 10 plates b. 15 parasols for 6 plates c. 15 parasols for 3 plates d. Huang and Min could not both gain from trade with each other at any price.

·         Question 7

5 out of 5 points

	Figure 3-23 The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month. Refer to Figure 3-23. The nation of Cropitia has a comparative advantage over Bonovia in producing ham if
	Selected Answer: b. Cropitia’s opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese. Answers: a. Cropitia can produce more than 320 pounds of cheese per month. b. Cropitia’s opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese. c. Cropitia’s opportunity cost of producing a pound of ham is greater than 0.8 pounds of cheese. d. Cropitia can produce more than 400 pounds of ham per month.

·         Question 8

5 out of 5 points

	Figure 3-14 Arturo’s Production Possibilities Frontier Dina’s Production Possibilities Frontier   Refer to Figure 3-14. Which of the following is not correct?
	Selected Answer: c. Arturo and Dina could each consume 200 tacos and 200 burritos with trade. Answers: a. Neither Arturo nor Dina could each consume 200 tacos and 200 burritos without trade. b. Total consumption of burritos could not be 600 either with or without trade. c. Arturo and Dina could each consume 200 tacos and 200 burritos with trade. d. Arturo and Dina could each consume 100 tacos and 100 burritos without trade.

·         Question 9

5 out of 5 points

	Figure 3-1 Panel (a) Panel (b) Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches is constant in
	Selected Answer: a. Panel (b). Answers: a. Panel (b). b. neither Panel (a) nor Panel (b). c. both Panel (a) and Panel (b). d. Panel (a).

·         Question 10

5 out of 5 points

	Table 3-16 The following table contains some production possibilities for an economy for a given month. Blankets Coats 8 600 12 ? 16 200 Refer to Table 3-16. If the production possibilities frontier is bowed outward, then “?” could be
	Selected Answer: b. 500. Answers: a. 400. b. 500. c. 300. d. 200.

·         Question 11

0 out of 5 points

	Figure 3-8 Chile’s Production Possibilities Frontier Colombia’s Production Possibilities Frontier Refer to Figure 3-8. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of pounds of coffee and pounds of soybeans could Chile and Colombia together not make in a given day?
	Selected Answer: a. 16 pounds of coffee and 9 pounds of soybeans Answers: a. 16 pounds of coffee and 9 pounds of soybeans b. 24 pounds of coffee and 3 pounds of soybeans c. 8 pounds of coffee and 14 pounds of soybeans d. 4 pounds of coffee and 17 pounds of soybeans

·         Question 12

5 out of 5 points

	Figure 3-7 Bintu’s Production Possibilities Frontier Juba’s Production Possibilities Frontier Refer to Figure 3-7. If Bintu and Juba each divides her time equally between making bowls and making cups, then total production is
	Selected Answer: c. 3 bowls and 7 cups. Answers: a. 4 bowls and 8 cups. b. 2 bowls and 6 cups. c. 3 bowls and 7 cups. d. 6 bowls and 14 cups.

·         Question 13

5 out of 5 points

	As a student, Anne spends 40 hours per week writing term papers and completing homework assignments. On one axis of her production possibilities frontier is measured the number of term papers written per week. On the other axis is measured the number of homework assignments completed per week. Anne’s production possibilities frontier is a straight line if
	Selected Answer: a. she can switch between writing term papers and completing homework assignments at a constant rate. Answers: a. she can switch between writing term papers and completing homework assignments at a constant rate. b. she faces no trade-off between writing term papers and completing homework assignments. c. she is required by her professors to spend half of her time on term papers and the other half of her time on homework assignments. d. the rate at which she can switch between homework assignments and term papers depends on the number of homework assignments she is completing and on the number of term papers she is writing.

·         Question 14

5 out of 5 points

	Figure 3-1 Panel (a) Panel (b) Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches depends on how many chairs and couches are being produced in
	Selected Answer: a. Panel (a). Answers: a. Panel (a). b. neither Panel (a) nor Panel (b). c. both Panel (a) and Panel (b). d. Panel (b).

·         Question 15

5 out of 5 points

	Consider two individuals — Howard and Mai — each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases?
	Selected Answer: c. Howard is very good at knitting sweaters and at cooking tasty food, but Mai’s skills in both of these activities are very poor. Answers: a. Howard’s skills are such that he can produce only sweaters, and Mai’s skills are such that she can produce only tasty food. b. Howard is very good at knitting sweaters and at cooking tasty food; Mai is very good at knitting sweaters, but she knows nothing about cooking tasty food. c. Howard is very good at knitting sweaters and at cooking tasty food, but Mai’s skills in both of these activities are very poor. d. Howard’s skills in knitting sweaters are fairly good, but his skills in cooking tasty food are fairly bad; Mai’s skills in knitting sweaters are fairly bad, but her skills in cooking tasty food are fairly good.

·         Question 16

5 out of 5 points

	Which of the following is not an example of the principle that trade can make everyone better off?
	Selected Answer: c. All of the above are examples of the principle that trade can make everyone better off. Answers: a. Residents of Maine drink orange juice from Florida. b. A homeowner hires the kid next door to mow the lawn. c. All of the above are examples of the principle that trade can make everyone better off. d. Americans buy tube socks from China.

·         Question 17

5 out of 5 points

	When an economist points out that you and millions of other people are interdependent, he or she is referring to the fact that we all
	Selected Answer: c. rely upon one another for the goods and services we consume. Answers: a. are concerned about one another’s well-being. b. rely upon the government to provide us with the basic necessities of life. c. rely upon one another for the goods and services we consume. d. have similar tastes and abilities.

·         Question 18

5 out of 5 points

	Jake can complete an oil change in 45 minutes and he can write a poem in 90 minutes. Ming-la can complete an oil change in 30 minutes and she can write a poem in 90 minutes. Jake's opportunity cost of writing a poem is lower than Ming-la's opportunity cost of writing a poem.
	Selected Answer: True Answers: True False

·         Question 19

5 out of 5 points

	If Wrex can produce more math problems per hour and more book reports per hour than Maxine can, then Wrex cannot gain from trading math problems and book reports with Maxine.
	Selected Answer: False Answers: True False

·         Question 20

5 out of 5 points

	If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.
	Selected Answer: False Answers: True False