Exam 2: Comparative Advantage

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

You are the Minister of Trade for a small island country with the following annual PPC: You are negotiating a trade agreement with a neighboring island with the following annual PPC: If the other island's delegate offers to give you 2 fish for every 1 coconut you give them, you will:

Points that lie beneath the production possibilities curve are:

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

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

The figure below shows Becky's daily production possibilities curve for dresses and skirts. Of the labeled points, only ______ are efficient.

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

Refer to the table above. ______ has the comparative advantage in making pies and ______ the comparative advantage in making cakes. Time to Make a Pie Time to Make a Cake Martha 60 minutes 80 minutes Julia 50 minutes 60 minutes

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

If country A can produce more of practically everything than can country B, then which of the following statements is true?

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, ______ has an absolute advantage in selling cars and ______ has an absolute advantage in selling trucks.

Points that lie outside the production possibilities curve are ______, and points that lie inside the production possibilities curve are ______.

The Principle of Increasing Opportunity Costs states that:

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 Mother Lode to another mine is:

Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown below. Which of the following is true?

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:

The United States generally has a comparative advantage in the development of technology because it has:

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. What is the opportunity cost to Cathy of making a cake?

Refer to the figure below. Growing 1,000 bushels of wheat and no bushels of corn each year is:

Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown below. If Moe moves from Point A to point C, his grade in Physics will go down by ______ his grade in economics.