Use the following to answer questions: Table: Production Possibilities for Italy and Belgium \[\begin{array}{l} \text { Labor Hours Needed to Make One }\\ \begin{array} { l c c c c } & { \text { Pound of: } } & &{ \text { Pounds produced in } 40 \text { hours: } } \\ \hline & \text { Linen } & \text { Pasta } & \text { Linen } & \text { Pasta } \\ \hline \text { Italy } & 10 & 4 & 4 & 10 \\ \text { Belgium } & 2 & 8 & 20 & 5 \\ \hline \end{array} \end{array}\] -(Table: Production Possibilities for Italy and Belgium) According to the table on production possibilities for Italy and Belgium, the opportunity cost of 1 pound of pasta for Italy is:

A) 2/5 pound of linen. B) 4 pounds of linen. C) 1/4 pound of linen. D) 2 hours of labor. A) 2/5 pound of linen. B) 4 pounds of linen. C) 1/4 pound of linen. D) 2 hours of labor.

Exam 2: The Power of Trade and Comparative

Use the following to answer questions: Table: Production Possibilities for Italy and Belgium Labor Hours Needed to Make One Pound of: Pounds produced in 40 hours: Linen Pasta Linen Pasta Italy 10 4 4 10 Belgium 2 8 20 5 -(Table: Production Possibilities for Italy and Belgium) According to the table on production possibilities for Italy and Belgium, the opportunity cost of 1 pound of pasta for Italy is:

(Multiple Choice)

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Question 241

Jack and Jill work at a bakery. In one hour, Jack can decorate either 5 ice-cream cakes or 2 wedding cakes. In one hour, Jill can decorate either 4 ice-cream cakes or 1 wedding cake. According to this scenario, which of the following outcomes will benefit both Jack and Jill the most?

(Multiple Choice)

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Question 242

Specialization and trade can _ the per-unit cost of production because _ .

(Multiple Choice)

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Question 243

Use the following to answer questions: Figure: PPF Mexico & United States -(Figure: PPF Mexico & United States) Use the above figure in which both Mexico and the United States each have 24 units of labor. Mexico has a comparative advantage in and the United States has a comparative advantage in .

(Multiple Choice)

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Question 244

Brazil can produce one unit of sugar cane for one unit of labor and one iPod for eight units of labor, and China can produce one unit of sugar cane for two units of labor and one iPod for four units of labor. Which of the following is true?

(Multiple Choice)

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Question 245

According to Adam Smith:

(Multiple Choice)

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Question 246

Trade makes people better off when:

(Multiple Choice)

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Question 247

Use the following to answer questions: Figure: Sofas and Windows -(Figure: Sofas and Windows) In the PPF diagram, what is the opportunity cost of producing an additional sofa?

(Multiple Choice)

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Question 248

Figure: United States Production Possibility Frontier Suppose the figure illustrates the United States PPF for the production of corn and TVs. Which of the following statements is TRUE?

(Multiple Choice)

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Question 249

The reason why Martha Stewart does not iron her own clothes is that:

(Multiple Choice)

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Question 250

Angela and Ed are married. Angela can do $40 worth of household chores per hour, and Ed can do $15 worth of household chores per hour. In the labor market, Ed can earn $30/hour and Angela can earn $40/hour. The theory of comparative advantage suggests that:

(Multiple Choice)

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Question 251

Trade works best between people who share similar preferences.

(True/False)

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Question 252

According to the textbook, globalization:

(Multiple Choice)

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Question 253

Countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

(True/False)

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Question 254

Jack and Jill work at a bakery. In one hour, Jack can decorate either 5 ice-cream cakes or 2 wedding cakes. In one hour, Jill can decorate either 4 ice-cream cakes or 1 wedding cake. According to this scenario, _ has a comparative advantage in decorating ice-cream cakes and _ has a comparative advantage in decorating wedding cakes.

(Multiple Choice)

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Question 255

Trade makes rich people richer and poor people poorer.

(True/False)

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Question 256

The production possibilities frontier shows all the combinations of goods that a country can produce given its productivity and supply of inputs.

(True/False)

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Question 257

Suppose the United States is more productive than China at making both T-shirts and cell phones. The theory of comparative advantage suggests that consumption in both countries will:

(Multiple Choice)

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Question 258

When using a production possibilities frontier (PPF), a trade-off is demonstrated by:

(Multiple Choice)

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Question 259

When determining what a country should specialize in producing, economists chiefly consider:

(Multiple Choice)

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Question 260

Showing 241 - 260 of 262

Exam 2: The Power of Trade and Comparative

Jack and Jill work at a bakery. In one hour, Jack can decorate either 5 ice-cream cakes or 2 wedding cakes. In one hour, Jill can decorate either 4 ice-cream cakes or 1 wedding cake. According to this scenario, which of the following outcomes will benefit both Jack and Jill the most?

Specialization and trade can _____ the per-unit cost of production because _____ .

Brazil can produce one unit of sugar cane for one unit of labor and one iPod for eight units of labor, and China can produce one unit of sugar cane for two units of labor and one iPod for four units of labor. Which of the following is true?

According to Adam Smith:

Trade makes people better off when:

Use the following to answer questions: Figure: Sofas and Windows -(Figure: Sofas and Windows) In the PPF diagram, what is the opportunity cost of producing an additional sofa?

Figure: United States Production Possibility Frontier Suppose the figure illustrates the United States PPF for the production of corn and TVs. Which of the following statements is TRUE?

The reason why Martha Stewart does not iron her own clothes is that:

Angela and Ed are married. Angela can do $40 worth of household chores per hour, and Ed can do $15 worth of household chores per hour. In the labor market, Ed can earn $30/hour and Angela can earn $40/hour. The theory of comparative advantage suggests that:

Trade works best between people who share similar preferences.

According to the textbook, globalization:

Countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best.

Trade makes rich people richer and poor people poorer.

The production possibilities frontier shows all the combinations of goods that a country can produce given its productivity and supply of inputs.

Suppose the United States is more productive than China at making both T-shirts and cell phones. The theory of comparative advantage suggests that consumption in both countries will:

When using a production possibilities frontier (PPF), a trade-off is demonstrated by:

When determining what a country should specialize in producing, economists chiefly consider:

The Big Ideas

Supply and Demand

Equilibrium

Elasticity and Its Applications

Taxes and Subsidies

The Price System

Price Ceilings and Floors

International Trade

Externalities- When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination

Oligopoly and Game Theory

Competing for Monopoly

Monopolistic Competition and Advertising

Labor Markets

Public Goods and the Tragedy of the Commons

Political Economy and Public Choice

Economics, Ethics, and Public Policy

Managing Incentives

Stock Markets and Personal Finance

Price Discrimination

Consumer Choice

Filters

Specialization and trade can _ the per-unit cost of production because _ .