Lec 4 Questions

Lec 4 Questions - In California, an acre of land can...

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Econ 101 Class 4 Questions 1. Which of the following best explains the connection between the principle of comparative advantage and Ari and Sam’s Production Possibilities Frontier (PPF)? A. Sam and Ari are inside the PPF unless Sam spends all her time writing. B. Sam and Ari are inside the PPF unless Sam spends all her time charting. C. The steeper slope of the PPF occurs when the opportunity cost of written words decreases. D. The steeper slope of the PPF occurs when Ari begins using her time to write instead of making charts. ** 2. Here are the production possibilities of each member of the survivor group Jean Joe Jerry Jack Fish (lbs) 4 3 2 1 Berries (lbs) 1 2 3 4 Given the survivors produce 6 lbs of fish efficiently, what is their opportunity cost for 1 pound of fish? A. 1/4 pound of berries B. 2/3 pounds of berries ** C. 1.5 pounds of berries D. 4 pounds of berries 3. In Kansas, an acre of land can produce 300 pounds of beef or 100 pounds of grapes.
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Unformatted text preview: In California, an acre of land can produce 150 pounds of beef or 200 pounds of grapes. Which of the Following is Correct? A. California has a comparative advantage in grape production because its opportunity cost of grapes is lower. ** B. California has a comparative advantage in grape production because its opportunity cost of grapes is higher. C. Kansas has a comparative advantage in grape production because its opportunity cost of grapes is lower. D. Kansas has a comparative advantage in grape production because its opportunity cost of grapes is higher. 4. Suppose the U.S. restricts imports of sugar. Who wins? A. U. S. consumers win because they are guaranteed high quality sugar. B. U. S. consumers win because they can buy sugar at a lower price. C. U. S. sugar farmers win because they can sell sugar at a higher price. ** D. Foreign sugar growers win because they can sell sugar at a higher price....
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This note was uploaded on 03/02/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.

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