Exam 2: Comparative Advantage

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. 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 ______.

Earth Movers & Shakers operates 3 iron ore mines.This table shows their daily production rates and the current number of miners at each mine.All of the miners work for the same wage and each miner in any given mine produces the same number of tons as each other miner in that mine. Mine Tons Number of Miners Mother Lode 100 25 Scraping Bottom 30 10 Middle Drift 75 15 Refer to the table above.The opportunity cost of moving one miner from Middle Drift to Mother Lode is:

Point A on a linear production possibilities curve represents a 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 opportunity cost of a cup of coffee is:

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

NAFTA helped ______ to exploit a comparative advantage in the production of goods made by unskilled labor.

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:

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below. Computers 10 6 Calculators 100 120 Refer to the table above.By coordinating their production decisions,the maximum number of computers Smith and Jones can produce in an hour is:

Which of the following is true?

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

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

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

According to the principle of increasing opportunity cost,expanding production requires using resources in which order?

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

The production possibilities curve shows:

According to the textbook,the evidence indicates that NAFTA has:

If a point on a production possibilities curve is attainable:

The Principle of Increasing Opportunity Costs implies that:

Production possibilities curves for large economies generally have an outward bow shape because:

The United States was unable to maintain its dominance in the production of televisions because:

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