Exam 2: Comparative Advantage

Refer to the figure below.The opportunity cost of increasing medical care from 200 to 400 units is ______ the opportunity cost of increasing medical care from 400 to 600 units.

The emergence of English as the de facto world language has _____ a comparative advantage in the production of books, movies and popular music:

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table: Based on last month's data, Joe's opportunity cost of selling a truck is selling:

In general, individuals and nations should specialize in producing goods ______ other individuals or nations.

Refer to the figure below.For the nation whose PPC is shown, it must be true that:

Refer to the figure below.This economy would be operating at point B if:

Refer to the table below.Based on their comparative advantage, Martha should specialize in _______ while Julia should specialize in _______.

Refer to the figure below.Relative to point B, at point C this restaurant is:

Suppose Cathy and Lewis work in a bakery making pies and cakes.Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake.Which of the following statements is correct?

Smith and Jones comprise a two­person economy.Their hourly rates of production are shown below. If Smith and Jones are dividing their time efficiently and producing fewer than 10 computers and more than 120 calculators per hour, then Smith will ______ and Jones will ______.

Generally, on a linear two­good production possibilities curve, the opportunity cost of the good measured on the vertical axis is:

An increase in an economy's productive resources will lead the production possibilities curve to:

Refer to the table below.According to the table, Julia has the absolute advantage in:

The fundamental reason firms outsource is that:

Refer to the figure below.Moving from point C to point B, the opportunity cost of 25 more salads is:

Moe divides his time between studying Physics and studying Economics.His production possibilities curve for his final grade in each class is shown below. According to Moe's PPC, moving from a 70 to an 80 in economics:

Smith and Jones comprise a two­person economy.Their hourly rates of production are shown below. Suppose Smith and Jones begin by producing 16 computers and 0 calculators per hour.If they wish to produce 14 computers and 40 calculators per hour efficiently, then Smith should spend ______, and Jones should spend ______.

Earth Movers & Shakers operates 3 iron ore mines.The table below shows each mine's total daily production and the current number of miners at each mine.All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Suppose Earth Movers & Shakers needs to fill an order for 100 tons of ore in a single day.If it has no other orders to fill that day, and it's not possible to transfer miners from one mine to another, it should:

You are the Minister of Trade for a small island country with the following annual PPC: You are negotiating a trade agreement with a neighboring island with the following annual PPC: If the other island's delegate offers to give you 2 fish for every 1 coconut you give them, you will:

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen.Data for their sales last month are shown in this table: Based on last month's data, Joe's opportunity cost of selling a car is ______ than Ralph's, and Joe's opportunity cost of selling a car is ______ than Larry's.