Exam 2: Comparative Advantage

Suppose that Nepal invests less in new factories and equipment than does the United States. This will likely cause:

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 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 ________.

All else equal, the jobs that are the least likely to be outsourced are those that:

The benefits to specialization are even greater when two trading partners have:

Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?

Refer to the accompanying table. According to the table, Corey has the absolute advantage in: Pizzas Made Per Hour Pizzas Delivered Per Hour Corey 12 6 Pat 10 15  

Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure. Moe needs to earn at least an 80 in both economics and physics to keep his scholarship. Given his current PPC, an 80 in both classes is ________. 

If you have a comparative advantage in a particular task, then:

According to the accompanying table, Julia has the absolute advantage in making: Time ta Make a Pie Tirne to Muke a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes  

Regarding specialization, it is generally true that:

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

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

The accompanying figure shows Avery's weekly production possibilities curve for scarves.     Avery's PPC would shift outward if she:

Suppose Karl divides his time between making birdhouses and growing artichokes. Karl's friend recently gave Karl some new woodworking tools that greatly reduced the amount of time it takes Karl to make each birdhouse, but the new tools had no impact on the amount of time it takes Karl to grow artichokes. Thus, the new tools ________ Karl's opportunity cost of growing artichokes.

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   The opportunity cost of moving one miner from Middle Drift to another mine is:

Refer to the accompanying table. Based on their comparative advantages, Pat should specialize in ________, and Corey should specialize in ________. Pizzas Made Per Hour Pizzas Delivered Per Hour Corey 12 6 Pat 10 15  

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

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 0 computers and 220 calculators per hour. If they wish to produce 2 computers and 200 calculators per hour efficiently, then Smith should spend ________, and Jones should spend ________.

Which of the following statements is true?

Refer to the accompanying table. Pat's opportunity cost of delivering a pizza is making: Pizzas Made Per Hour Pizzas Delivered Per Hour Corey 12 6 Pat 10 15