Exam 2: Comparative Advantage

Pat has 4 hours to spend either studying for a test or playing a new video game. If Pat spends all of that time studying, Pat can score a 92 on the test. If Pat plays for 1 hour, Pat's test score falls 5 points. For playing a second hour, Pat's score falls by another 7 points. Playing for a third hour will lower Pat's score by another 10 points. Refer to the information above. Pat's PPC for test score versus hours playing a new video game is:

Larry has a comparative advantage in writing a term paper if he:

Economic growth can result from a(n):

Pat has 4 hours to spend either studying for a test or playing a new video game. If Pat spends all of that time studying, Pat can score a 92 on the test. If Pat plays for 1 hour, Pat's test score falls 5 points. For playing a second hour, Pat's score falls by another 7 points. Playing for a third hour will lower Pat's score by another 10 points. Refer to the information above. The intercept on the test score axis of Pat's PPC is:

Points that lie below the production possibilities curve are inefficient because:

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 ________ has an absolute advantage in selling cars and __________ has an absolute advantage in selling trucks.

If your linear, two-good production possibilities graph has a slope steeper than -1:

An existing comparative advantage can be further magnified by specialization because:

The key to resolving the apparent paradox of international trade increasing total output yet facing much political opposition is noting that:

The United States has a comparative advantage in producing books and movies because:

Moe divides his time between studying Physics and studying Economics. He has discovered that he can earn grades as shown on this production possibilities curve. Refer to the figure above. Both of Moe's professors require at least a 65 to pass and a 90 to earn an A. After looking at his PPC, Moe realizes that:

Which of the following is true?

In a two-person, two-good economy, the benefits of labor specialization will be larger when:

A country may have a comparative advantage in the production of cars if:

If a given production combination is known to be attainable, then it must be:

To say that an individual possesses an absolute advantage in the production of software means that individual:

You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: You are negotiating a deal with a neighboring island that has the following annual PPC: Refer to the figure above. If you offer to give the other island 400 coconuts in exchange for 1,500 fish:

If a point on a production possibilities curve is attainable:

The production possibilities curve is:

When U.S. companies open offices in Asia and hire workers there, it is evidence that: