Question 1

If a nation restricts imports, it will:

Accepted Answer

A) benefit each individual citizen in that nation. 
B) increase the total value of goods and services produced in that nation. 
C) decrease the total value of goods and services produced in that nation. 
D) harm each individual citizen in that nation. 
A) benefit each individual citizen in that nation. 
B) increase the total value of goods and services produced in that nation. 
C) decrease the total value of goods and services produced in that nation. 
D) harm each individual citizen in that nation.

Question 2

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

Accepted Answer

A) 5 pizzas. 
B) 10 pizzas. 
C) 15 pizzas. 
D) 30 pizzas. 
A) 5 pizzas. 
B) 10 pizzas. 
C) 15 pizzas. 
D) 30 pizzas.

Question 3

Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: $$\begin{array} { | l | c | c | } 
\hline & \text { Cars Sold } & \text { Trucks Sold } \
\hline \text { Larry } & 10 & 5 \
\hline \text { Joe } & 9 & 9 \
\hline \text { Ralph } & 3 & 12 \
\hline
\end{array}$$ Based on last month's data, ______ should specialize in truck sales, and ______ should specialize in car sales.

Accepted Answer

A) Joe; Ralph 
B) Ralph; Larry 
C) Larry; Ralph 
D) Larry; Joe 
A) Joe; Ralph 
B) Ralph; Larry 
C) Larry; Ralph 
D) Larry; Joe

Question 4

Refer to the table below. Pat's opportunity cost of delivering a pizza is making: $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Pizzas } \
\text { Made } \
\text { Per Hour }
\end{array} & \begin{array} { c } 
\text { Pizzas } \
\text { Delivered } \
\text { Per Hour }
\end{array} \
\hline \text { Corey } & 12 & 6 \
\hline \text { Pat } & 10 & 15 \
\hline
\end{array}$$

Accepted Answer

A) 12 pizzas 
B) 10 pizzas 
C) 3/2 of a pizza 
D) 2/3 of a pizza 
A) 12 pizzas 
B) 10 pizzas 
C) 3/2 of a pizza 
D) 2/3 of a pizza

Question 5

Refer to the table below. According to the table, Julia has the absolute advantage in: $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Time to } \
\text { Make a Pie }
\end{array} & \begin{array} { c } 
\text { Time to } \
\text { Make a Cake }
\end{array} \
\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \
\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \
\hline
\end{array}$$

Accepted Answer

A) pies. 
B) neither pies nor cakes. 
C) cakes. 
D) both pies and cakes. 
A) pies. 
B) neither pies nor cakes. 
C) cakes. 
D) both pies and cakes.

Question 6

Refer to the figure below. If Pat and Chris were to specialize in the task in which each has a comparative advantage:

Accepted Answer

A) Chris would plant bulbs and Pat would remove trash. 
B) Chris would remove trash and Pat would plant bulbs. 
C) Pat and Chris would each spend half of their time each task. 
D) both Pat and Chris would plant bulbs because they both have an absolute advantage in that task. 
A) Chris would plant bulbs and Pat would remove trash. 
B) Chris would remove trash and Pat would plant bulbs. 
C) Pat and Chris would each spend half of their time each task. 
D) both Pat and Chris would plant bulbs because they both have an absolute advantage in that task.

Question 7

Which of the following jobs is least likely to be outsourced?

Accepted Answer

A) Flipping hamburgers 
B) Technical assistance over the phone for your computer 
C) Transcription of physicians' records 
D) Software design 
A) Flipping hamburgers 
B) Technical assistance over the phone for your computer 
C) Transcription of physicians' records 
D) Software design

Question 8

One reason there is political opposition to international trade is that:

Accepted Answer

A) the potential gains from specialization and trade are small. 
B) trade does not increase the total value of goods and services produced by a nation. 
C) the differences in opportunity costs between countries are small. 
D) not everyone benefits from trade. 
A) the potential gains from specialization and trade are small. 
B) trade does not increase the total value of goods and services produced by a nation. 
C) the differences in opportunity costs between countries are small. 
D) not everyone benefits from trade.

Question 9

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Calculators } \
\text { Per Hour }
\end{array} & \begin{array} { c } 
\text { Computers } \
\text { Per Hour }
\end{array} \
\hline \text { Smith } & 100 & 10 \
\hline \text { Jones } & 120 & 6 \
\hline
\end{array}$$ 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 ______.

Accepted Answer

A) 30 minutes on each; 30 minutes on each 
B) 48 minutes on computers and 12 minutes on calculators; 1 hour on calculators 
C) 1 hour on calculators; 10 minutes on computers and 50 minutes on calculators 
D) 12 minutes on computers and 48 minutes on calculators; 1 hour on calculators 
A) 30 minutes on each; 30 minutes on each 
B) 48 minutes on computers and 12 minutes on calculators; 1 hour on calculators 
C) 1 hour on calculators; 10 minutes on computers and 50 minutes on calculators 
D) 12 minutes on computers and 48 minutes on calculators; 1 hour on calculators

Question 10

The figure below shows Becky's daily production possibilities curve for dresses and skirts.   Point T is:

Accepted Answer

A) attainable 
B) efficient 
C) both attainable and efficient 
D) neither attainable nor efficient 
A) attainable 
B) efficient 
C) both attainable and efficient 
D) neither attainable nor efficient

Question 11

A country is most likely to have a comparative advantage in the production of cars if:

Accepted Answer

A) it imports most of the raw materials necessary to produce cars. 
B) its citizens prefer driving cars to other forms of transportation. 
C) it has strict environmental protection laws governing automobile emissions. 
D) it has a relative abundance in the natural resources needed to produce cars. 
A) it imports most of the raw materials necessary to produce cars. 
B) its citizens prefer driving cars to other forms of transportation. 
C) it has strict environmental protection laws governing automobile emissions. 
D) it has a relative abundance in the natural resources needed to produce cars.

Question 12

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

Accepted Answer

A) the total value of goods and services produced by the United States to fall. 
B) wages in Mexico to rise. 
C) highly skilled workers in the United States to lose their jobs. 
D) unskilled workers in the United States to lose their jobs. 
A) the total value of goods and services produced by the United States to fall. 
B) wages in Mexico to rise. 
C) highly skilled workers in the United States to lose their jobs. 
D) unskilled workers in the United States to lose their jobs.

Question 13

The production possibilities curve shows:

Accepted Answer

A) the minimum production of one good for every possible production level of the other good. 
B) how increasing the resources used to produce one good increases the production of the other good. 
C) the maximum production of one good for every possible production level of the other good. 
D) how increasing the production of one good allows production of the other good to also rise. 
A) the minimum production of one good for every possible production level of the other good. 
B) how increasing the resources used to produce one good increases the production of the other good. 
C) the maximum production of one good for every possible production level of the other good. 
D) how increasing the production of one good allows production of the other good to also rise.

Question 14

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Calculators } \
\text { Per Hour }
\end{array} & \begin{array} { c } 
\text { Computers } \
\text { Per Hour }
\end{array} \
\hline \text { Smith } & 100 & 10 \
\hline \text { Jones } & 120 & 6 \
\hline
\end{array}$$ 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 ______.

Accepted Answer

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

Question 15

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

Accepted Answer

A) it was operating efficiently. 
B) the opportunity cost of making milk were higher than the opportunity cost of making movies. 
C) the opportunity cost of making movies were higher than the opportunity cost of making milk. 
D) resources that are better-suited to making movies were being used to make milk, while resources that are better-suited to making milk were being used to make movies. 
A) it was operating efficiently. 
B) the opportunity cost of making milk were higher than the opportunity cost of making movies. 
C) the opportunity cost of making movies were higher than the opportunity cost of making milk. 
D) resources that are better-suited to making movies were being used to make milk, while resources that are better-suited to making milk were being used to make movies.

Question 16

Refer to the table below. Julia's opportunity cost of making a cake is: $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Time to } \
\text { Make a Pie }
\end{array} & \begin{array} { c } 
\text { Time to } \
\text { Make a Cake }
\end{array} \
\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \
\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \
\hline
\end{array}$$

Accepted Answer

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

Question 17

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

Accepted Answer

A) increase 
B) decrease 
C) stay the same 
D) become unpredictable 
A) increase 
B) decrease 
C) stay the same 
D) become unpredictable

Question 18

Suppose it takes Paul 3 hours to bake a cake and 2 hours to move the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?

Accepted Answer

A) Paul has the absolute advantage in baking cakes 
B) Paul has the comparative in mowing the lawn 
C) Paul has the comparative in baking cakes 
D) Paul has the absolute advantage in mowing the lawn. 
A) Paul has the absolute advantage in baking cakes 
B) Paul has the comparative in mowing the lawn 
C) Paul has the comparative in baking cakes 
D) Paul has the absolute advantage in mowing the lawn.

Question 19

Refer to the table below. According to the table, Pat has the absolute advantage in: $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Pizzas } \
\text { Made } \
\text { Per Hour }
\end{array} & \begin{array} { c } 
\text { Pizzas } \
\text { Delivered } \
\text { Per Hour }
\end{array} \
\hline \text { Corey } & 12 & 6 \
\hline \text { Pat } & 10 & 15 \
\hline
\end{array}$$

Accepted Answer

A) making pizza. 
B) neither making nor delivering pizza. 
C) delivering pizza. 
D) making and delivering pizza. 
A) making pizza. 
B) neither making nor delivering pizza. 
C) delivering pizza. 
D) making and delivering pizza.

Question 20

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. What is the opportunity cost to Dan of making a sandwich?

Accepted Answer

A) 1/3 of a smoothie 
B) 3 smoothies 
C) 15 smoothies 
D) 5 smoothies 
A) 1/3 of a smoothie 
B) 3 smoothies 
C) 15 smoothies 
D) 5 smoothies

If a nation restricts imports, it will:

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

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, should specialize in truck sales, and should specialize in car sales.

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

Refer to the table below. According to the table, Julia has the absolute advantage in: Time to Make a Pie Time to Make a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes

Refer to the figure below. If Pat and Chris were to specialize in the task in which each has a comparative advantage:

Which of the following jobs is least likely to be outsourced?

One reason there is political opposition to international trade is that:

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Point T is:

A country is most likely to have a comparative advantage in the production of cars if:

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

The production possibilities curve shows:

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

Refer to the table below. Julia's opportunity cost of making a cake is: Time to Make a Pie Time to Make a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes

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

Suppose it takes Paul 3 hours to bake a cake and 2 hours to move the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?

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

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. What is the opportunity cost to Dan of making a sandwich?

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

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Filters

Exam 2: Comparative Advantage

If a nation restricts imports, it will:

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

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, ______ should specialize in truck sales, and ______ should specialize in car sales.

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

Refer to the table below. According to the table, Julia has the absolute advantage in: Time to Make a Pie Time to Make a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes

Refer to the figure below. If Pat and Chris were to specialize in the task in which each has a comparative advantage:

Which of the following jobs is least likely to be outsourced?

One reason there is political opposition to international trade is that:

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Point T is:

A country is most likely to have a comparative advantage in the production of cars if:

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

The production possibilities curve shows:

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

Refer to the table below. Julia's opportunity cost of making a cake is: Time to Make a Pie Time to Make a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes

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

Suppose it takes Paul 3 hours to bake a cake and 2 hours to move the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?

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

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. What is the opportunity cost to Dan of making a sandwich?

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

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Filters

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, should specialize in truck sales, and should specialize in car sales.