Question 1

Adam Smith developed the theory of comparative advantage as we know it today.

Accepted Answer

A) True 
 B)False

Question 2

Figure 3-2
  
-Refer to Figure 3-2.If Paul divides his time equally between corn and wheat,what will he be able to produce?

Accepted Answer

A) 4 bushels of wheat and 1 bushel of corn 
B) 4 bushels of wheat and 5 bushels of corn 
C) 5 bushels of wheat and 4 bushels of corn 
D) 5 bushels of wheat and 5 bushels of corn 
A) 4 bushels of wheat and 1 bushel of corn 
B) 4 bushels of wheat and 5 bushels of corn 
C) 5 bushels of wheat and 4 bushels of corn 
D) 5 bushels of wheat and 5 bushels of corn

Question 3

Table 3-3
  
-Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in?

Accepted Answer

A) Helen has an absolute advantage in dresses, and Carolyn has a comparative advantage in quilts. 
B) Helen has an absolute advantage in both goods, and Carolyn has a comparative advantage in dresses. 
C) Helen has an absolute advantage in quilts, and Carolyn has a comparative advantage in quilts. 
D) Helen has an absolute advantage in both goods, and Carolyn has a comparative advantage in quilts. 
A) Helen has an absolute advantage in dresses, and Carolyn has a comparative advantage in quilts. 
B) Helen has an absolute advantage in both goods, and Carolyn has a comparative advantage in dresses. 
C) Helen has an absolute advantage in quilts, and Carolyn has a comparative advantage in quilts. 
D) Helen has an absolute advantage in both goods, and Carolyn has a comparative advantage in quilts.

Question 4

Table 3-5
  
-Refer to Table 3-5.Which country has an absolute advantage in each product?

Accepted Answer

A) Canada has an absolute advantage in airplanes, and Japan has an absolute advantage in cars. 
B) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in both goods. 
C) Canada has an absolute advantage in cars, and Japan has an absolute advantage in airplanes. 
D) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in cars. 
A) Canada has an absolute advantage in airplanes, and Japan has an absolute advantage in cars. 
B) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in both goods. 
C) Canada has an absolute advantage in cars, and Japan has an absolute advantage in airplanes. 
D) Canada has an absolute advantage in neither good, and Japan has an absolute advantage in cars.

Question 5

Figure 3-3
Ice cream and cones are measured in kilograms.
  
-Refer to Figure 3-3.What does each of the two producers have a comparative or absolute advantage in?

Accepted Answer

A) Ben has an absolute advantage in cones, and Jerry has a comparative advantage in ice cream. 
B) Ben has an absolute advantage in both goods, and Jerry has a comparative advantage in cones. 
C) Ben has an absolute advantage in ice cream, and Jerry has a comparative advantage in cones. 
D) Ben has an absolute advantage in neither good, and Jerry has a comparative advantage in ice cream. 
A) Ben has an absolute advantage in cones, and Jerry has a comparative advantage in ice cream. 
B) Ben has an absolute advantage in both goods, and Jerry has a comparative advantage in cones. 
C) Ben has an absolute advantage in ice cream, and Jerry has a comparative advantage in cones. 
D) Ben has an absolute advantage in neither good, and Jerry has a comparative advantage in ice cream.

Adam Smith developed the theory of comparative advantage as we know it today.

Figure 3-2 -Refer to Figure 3-2.If Paul divides his time equally between corn and wheat,what will he be able to produce?

Table 3-3 -Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in?

Table 3-5 -Refer to Table 3-5.Which country has an absolute advantage in each product?

Figure 3-3 Ice cream and cones are measured in kilograms. -Refer to Figure 3-3.What does each of the two producers have a comparative or absolute advantage in?

Ten Principles of Economics

Thinking Like an Economist

The Market Forces of Supply and Demand (PART 1)

The Market Forces of Supply and Demand (PART 2)

Measuring a Nation's Income

Measuring the Cost of Living

Production and Growth

Saving,Investment,and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff between Inflation and Unemployment

Five Debates over Macroeconomic Policy

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Exam 3: Interdependence and the Gains from Trade

Adam Smith developed the theory of comparative advantage as we know it today.

Figure 3-2 -Refer to Figure 3-2.If Paul divides his time equally between corn and wheat,what will he be able to produce?

Table 3-3 -Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in?

Table 3-5 -Refer to Table 3-5.Which country has an absolute advantage in each product?

Figure 3-3 Ice cream and cones are measured in kilograms. -Refer to Figure 3-3.What does each of the two producers have a comparative or absolute advantage in?

Ten Principles of Economics

Thinking Like an Economist

The Market Forces of Supply and Demand (PART 1)

The Market Forces of Supply and Demand (PART 2)

Measuring a Nation's Income

Measuring the Cost of Living

Production and Growth

Saving,Investment,and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff between Inflation and Unemployment

Five Debates over Macroeconomic Policy

Filters