13-20785-review-mcqsint302dlmid

13-20785-review-mcqsint302dlmid - Review MCQs 1. Agnes can...

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Review MCQs 1. Agnes can produce either 10 units of X or 10 units of Y in an hour, while Brenda can produce either 20 units of X or 40 units of Y in an hour. a. Brenda has an absolute advantage over Agnes b. Agnes has a comparative advantage in the production of Y c. Brenda has a comparative advantage in the production of X d. Brenda cannot gain from trade 2. Agnes can produce either 10 units of X or 10 unit of Y in an hour, while Brenda can produce either 20 units of X or 40 units of Y in an hour. There can be gains from exchange a. if Agnes specializes in the production of X and Brenda in Y b. If Agnes specializes in the production of Y and Brenda in X c. Only if Agnes becomes faster at producing X d. Only if Brenda becomes faster at producing X or Y 3. A person has a comparative advantage in producing a particular good if that person a. has higher productivity in producing it than anyone else b. can produce it at lower opportunity cost than anyone else c. has less desire to consume that good than anyone else d. has more human capital related to that good than anyone else 4. Agnes can produce either 10 units of X or 10 unit of Y in an hour, while Brenda can produce either 20 units of X or 40 units of Y in an hour. The opportunity cost of producing a unit of X is a. 1 unit of Y for Agnes and 2 units of Y for Brenda b. 1 unit of Y for Agnes and ½ unit of Y for Brenda c. 1 hour for Agnes and ½ hour for Brenda d. 1 hour for Agnes and 2 hours for Brenda Table 1.1 Country A Country B X Y X Y 0 12 0 16 2 9 2 12 4 6 4 8 6 3 6 4 8 0 8 0 5. In the table1.1, the opportunity cost of producing more of a. good X is the same for both countries b. good Y is the same for both countries c. good X is lower for country A d. good Y is lower in country A 6. In the table 1.1, regarding the production of good X a. country A has an absolute advantage b. country B has a absolute advantage c. country A has a comparative advantage d. country B has a comparative advantage 7. Refer to table 1.1. For country B, the opportunity cost of producing an additional unit of X is a. 4 units of Y b. 2 units of Y c. 3/2 units of Y d. 1 unit of Y 8. Refer to table 1.1. For country B, the opportunity cost of producing an additional unit of Y is a. ½ unit of X b. 2/3 unit of X c. 2 units of X d. 3 units of X
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9. Because of the existence of comparative advantage, the total output of goods is higher when each
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13-20785-review-mcqsint302dlmid - Review MCQs 1. Agnes can...

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