Exam 2: Comparative Advantage

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

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

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

According to the Principle of Increasing Opportunity Cost, in expanding the production of any good, we should start by utilizing the resources that:

Production possibilities curves for large economies are generally bow-shaped because:

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 figure below. The opportunity cost of producing one bushel of wheat is:

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

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. Total Tons Per Day Number of Miners Mother Lode 100 25 Scraping Bottom 30 10 Middle Drift 75 15 The opportunity cost of moving one miner from Middle Drift to another mine is:

Assume point A on a linear production possibilities curve represents the combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos. Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis. The absolute value of the slope of the production possibilities curve between points A and B equals:

Refer to the figure below. The opportunity cost of producing one bushel of corn is:

Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. Rooms Cleaned Per Hour Meals Cooked Per Hour Lou 5 4 Alex 3 3 For Alex, the opportunity cost of cleaning one room is making ______ meal(s); for Lou the opportunity cost of cleaning one room is making ______ meal(s).

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

Working efficiently, Jordan can write 3 essays and outline 4 chapters each week. It must be true that:

Refer to the figure below. If this restaurant goes from producing 20 to 25 pizzas per hour, then which of the following statements is true?

The idea that tradeoffs have to be made when resources are scarce is reflected in the fact that:

The figure below shows Becky's daily production possibilities curve for dresses and skirts. The maximum number of dresses that Becky can make in a day is represented by point:

Which of the following statements is true?

Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown below. 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 Al has an absolute advantage over Beth in preparing meals, then: