Earth Movers & Shakers operates 3 iron ore mines. The accompanying table 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. \[\begin{array} { | l | r | r | } \hline & \text { Total Tans Per Day } & \text { Number of Miners } \\ \hline \text { Mother Iuode } & 100 & 25 \\ \hline \text { Bcrapirng Bottorn } & 30 & 10 \\ \hline \text { Middle Drift } & 75 & 15 \\ \hline \end{array}\] 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:

A) take it all from Mother Lode. B) take 75 tons from Middle Drift and 25 tons from Mother Lode. C) take 75 tons from Middle Drift and 25 tons from Scraping Bottom. D) take 30 tons from Scraping Bottom and 70 tons from Mother Lode. A) take it all from Mother Lode. B) take 75 tons from Middle Drift and 25 tons from Mother Lode. C) take 75 tons from Middle Drift and 25 tons from Scraping Bottom. D) take 30 tons from Scraping Bottom and 70 tons from Mother Lode.

Refer to the accompanying table. Julia's opportunity cost of making a pie is: \[\begin{array} { | l | c | c | } \hline & \text { Time ta Make a Pie } & \text { Tirne to Muke a Cake } \\ \hline \text { Martha } & 60 \text {minutes } & 80 \text { minutes } \\ \hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\ \hline \end{array}\]

A) 60 cakes. B) 6 cakes. C) 6/5 of a cake. D) 5/6 of a cake. A) 60 cakes. B) 6 cakes. C) 6/5 of a cake. D) 5/6 of a cake.

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: \(\begin{array}{l|r|r|r} \hline & \text { Cars Sold } & \text { Trucks Sold } \\ \hline \text { Larry } & 10 & 5 \\ \hline \text { Joe } & 9 & 9 \\ \hline \text { Ralph } & 3 & 12 \\ \hline \end{array}\) Based on last month's data, Joe's opportunity cost of selling a truck is selling:

A) 9 cars. B) 1 car. C) 4 cars. D) 1/3 of a car. A) 9 cars. B) 1 car. C) 4 cars. D) 1/3 of a car.

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. \[\begin{array} { | l | r | r | } \hline & \text { Calculatars Per Haur } & \text { Camputers Per Haur } \\ \hline \text { Brith } & 100 & 10 \\ \hline \text { Jones } & 120 & 6 \\ \hline \end{array}\] Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, ________ should devote more time to calculators because his ________.

A) Smith; absolute advantage is larger B) Jones; absolute advantage is smaller C) Jones; opportunity costs are lower D) Smith; opportunity costs are lower A) Smith; absolute advantage is larger B) Jones; absolute advantage is smaller C) Jones; opportunity costs are lower D) Smith; opportunity costs are lower

Exam 2: Comparative Advantage

Earth Movers & Shakers operates 3 iron ore mines. The accompanying table 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. Total Tans Per Day Number of Miners Mother Iuode 100 25 Bcrapirng Bottorn 30 10 Middle Drift 75 15 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:

(Multiple Choice)

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Question 21

In general, individuals and nations should specialize in producing those goods for which they have a(n):

(Multiple Choice)

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Question 22

Refer to the accompanying table. Julia's opportunity cost of making a pie is: Time ta Make a Pie Tirne to Muke a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes

(Multiple Choice)

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Question 23

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks Sold Larry 10 5 Joe 9 9 Ralph 3 12 Based on last month's data, Joe's opportunity cost of selling a truck is selling:

(Multiple Choice)

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Question 24

Refer to the accompanying figure. As the production of pizza increases, the opportunity cost of producing pizza:

(Multiple Choice)

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Question 25

One concern regarding the North American Free Trade Agreement (NAFTA)was that it would lead:

(Multiple Choice)

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Question 26

Refer to the accompanying figure. It is efficient for this farmer to:

(Multiple Choice)

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Question 27

The textbook notes that the last time a major league batter hit .400 was in 1941. This is because:

(Multiple Choice)

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Question 28

Refer to the accompanying figure. Which of the following is true?

(Multiple Choice)

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Question 29

When a U.S. firm engages in outsourcing, it benefits and harms .

(Multiple Choice)

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Question 30

As the differences in opportunity costs between the U.S. and its trading partners increase, the potential gains from specialization and trade ________.

(Multiple Choice)

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Question 31

Refer to the accompanying figure. For Pat, the opportunity cost of planting one bulb is removing:

(Multiple Choice)

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Question 32

According to the textbook, NAFTA was expected to help which country exploit its comparative advantage in the production of goods made by unskilled labor?

(Multiple Choice)

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Question 33

Any combination of goods that can be produced with currently available resources is an:

(Multiple Choice)

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Question 34

Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies:

(Multiple Choice)

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Question 35

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculatars Per Haur Camputers Per Haur Brith 100 10 Jones 120 6 Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, should devote more time to calculators because his .

(Multiple Choice)

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Question 36

Refer to the accompanying figure. If Pat and Chris each spend half their time on each task, then:

(Multiple Choice)

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Question 37

Refer to the accompanying figure. Suppose that the government requires that resources be used efficiently. Which of the following would the government definitely not allow?

(Multiple Choice)

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Question 38

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?

(Multiple Choice)

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Question 39

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

(Multiple Choice)

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Question 40

Exam 2: Comparative Advantage

In general, individuals and nations should specialize in producing those goods for which they have a(n):

Refer to the accompanying table. Julia's opportunity cost of making a pie is: Time ta Make a Pie Tirne to Muke a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks Sold Larry 10 5 Joe 9 9 Ralph 3 12 Based on last month's data, Joe's opportunity cost of selling a truck is selling:

Refer to the accompanying figure. As the production of pizza increases, the opportunity cost of producing pizza:

One concern regarding the North American Free Trade Agreement (NAFTA)was that it would lead:

Refer to the accompanying figure. It is efficient for this farmer to:

The textbook notes that the last time a major league batter hit .400 was in 1941. This is because:

Refer to the accompanying figure. Which of the following is true?

When a U.S. firm engages in outsourcing, it benefits ________ and harms ________.

As the differences in opportunity costs between the U.S. and its trading partners increase, the potential gains from specialization and trade ________.

Refer to the accompanying figure. For Pat, the opportunity cost of planting one bulb is removing:

According to the textbook, NAFTA was expected to help which country exploit its comparative advantage in the production of goods made by unskilled labor?

Any combination of goods that can be produced with currently available resources is an:

Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies:

Refer to the accompanying figure. If Pat and Chris each spend half their time on each task, then:

Refer to the accompanying figure. Suppose that the government requires that resources be used efficiently. Which of the following would the government definitely not allow?

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?

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

Thinking Like an Economist

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

When a U.S. firm engages in outsourcing, it benefits and harms .