Use the following to answer questions: Table: Production Possibilities for Kenya and Sri Lanka \[\begin{array} { l c c } \hline & \text { Beans (millions of tons) } & \text { Tea (millions of tons) } \\ \hline \text { Kenya } & 100 & 200 \\ \text { Sri Lanka } & 150 & 450 \\ \hline \end{array}\] -(Table: Production Possibilities for Kenya and Sri Lanka) According to the table on production possibilities for Kenya and Sri Lanka, Kenya should produce ________ and Sri Lanka should produce __________.

A) beans; tea B) tea; beans C) both goods; neither good D) neither good; both goods A) beans; tea B) tea; beans C) both goods; neither good D) neither good; both goods

Exam 2: The Power of Trade and Comparative

Anita can bake 10 cakes in a day, but has no time left to make cookies. If she bakes only cookies, she can make 200 cookies in a day. John makes equally delicious cakes and cookies but can only make 7 cakes or 100 cookies in a day. Based on this information, which of the following statements is TRUE?

(Multiple Choice)

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Question 21

Trade barriers like the Berlin Wall:

(Multiple Choice)

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Question 22

Only a very small portion of people who use microwaves know how they work. This is an example of:

(Multiple Choice)

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Question 23

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. Thus, the opportunity cost of decorating an ice-cream cake is _ for Jack and _ for Jill.

(Multiple Choice)

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Question 24

The relationship between trade and specialization is best characterized as follows:

(Multiple Choice)

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Question 25

A country has a comparative advantage in a good if:

(Multiple Choice)

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Question 26

Gains from trade are largest when two parties are similar in terms of opportunity costs of production.

(True/False)

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Question 27

A country has an absolute advantage if it can produce ___ good using _ inputs than another country.

(Multiple Choice)

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Question 28

Use the following to answer questions: Table: Production Possibilities for Kenya and Sri Lanka Beans (millions of tons) Tea (millions of tons) Kenya 100 200 Sri Lanka 150 450 -(Table: Production Possibilities for Kenya and Sri Lanka) According to the table on production possibilities for Kenya and Sri Lanka, Kenya should produce and Sri Lanka should produce __.

(Multiple Choice)

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Question 29

Both Maria and Jorge bake cookies and bread, but Maria spends less time baking each batch of cookies and each loaf of bread than Jorge does. Specialization and trade between them can benefit:

(Multiple Choice)

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Question 30

Use the following to answer questions: Figure: Coffee and Tea -(Figure: Coffee and Tea) Refer to the figure. Which of the following is NOT a possible production level?

(Multiple Choice)

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Question 31

When countries produce those goods for which they have a comparative advantage:

(Multiple Choice)

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Question 32

International trade is based on the theory of absolute advantage.

(True/False)

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Question 33

In Spain it takes 10 workers to produce one barrel of wine and four workers to produce one yard of cloth. Thus, the opportunity cost of producing one barrel of wine is 2.5 yards of cloth.

(True/False)

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Question 34

What is the difference between trade among individuals and trade among nations?

(Multiple Choice)

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Question 35

Knowledge increases __ and specialization total output.

(Multiple Choice)

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Question 36

Use the following to answer questions: Figure: PPF Nickel & Textiles -(Figure: PPF Nickel & Textiles) Refer to the figure. How many tons of textiles does Australia give up to produce one ton of nickel?

(Multiple Choice)

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Question 37

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 38

The human brain has no limits, so the division of knowledge decreases the total knowledge in society.

(True/False)

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Question 39

Which of the following best describes the principle of comparative advantage?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 262

Exam 2: The Power of Trade and Comparative

Trade barriers like the Berlin Wall:

Only a very small portion of people who use microwaves know how they work. This is an example of:

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. Thus, the opportunity cost of decorating an ice-cream cake is _____ for Jack and _____ for Jill.

The relationship between trade and specialization is best characterized as follows:

A country has a comparative advantage in a good if:

Gains from trade are largest when two parties are similar in terms of opportunity costs of production.

A country has an absolute advantage if it can produce _______ good using _____ inputs than another country.

Both Maria and Jorge bake cookies and bread, but Maria spends less time baking each batch of cookies and each loaf of bread than Jorge does. Specialization and trade between them can benefit:

Use the following to answer questions: Figure: Coffee and Tea -(Figure: Coffee and Tea) Refer to the figure. Which of the following is NOT a possible production level?

When countries produce those goods for which they have a comparative advantage:

International trade is based on the theory of absolute advantage.

In Spain it takes 10 workers to produce one barrel of wine and four workers to produce one yard of cloth. Thus, the opportunity cost of producing one barrel of wine is 2.5 yards of cloth.

What is the difference between trade among individuals and trade among nations?

Knowledge increases ____________ and specialization __________ total output.

Use the following to answer questions: Figure: PPF Nickel & Textiles -(Figure: PPF Nickel & Textiles) Refer to the figure. How many tons of textiles does Australia give up to produce one ton of nickel?

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?

The human brain has no limits, so the division of knowledge decreases the total knowledge in society.

Which of the following best describes the principle of comparative advantage?

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

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. Thus, the opportunity cost of decorating an ice-cream cake is _ for Jack and _ for Jill.

A country has an absolute advantage if it can produce ___ good using _ inputs than another country.

Knowledge increases __ and specialization total output.