chapter33 - Chapter 33 Test Bank Multiple Choice Questions...

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Chapter 33 Test BankMultiple Choice Questions1. The slope of the production possibility frontier is determined by the ________________ of expanding production of one good, measured by how much of the other good would be lost.A. absolute advantageB. opportunity costC. relative advantageD. specializationAnswer: B
Reference: Explanation: Type: Multiple Choice Difficulty: Medium Category: Remember2. When one nation can produce a product at lower cost relative to another nation, it is said to have a(n) __________________ in producing that product.
Reference: Explanation: Type: Multiple Choice Difficulty: Easy Category: Remember3. Colombia produces coffee with less labor and land than any other country; it therefore necessarily has:
Reference: Explanation: Type: Multiple Choice Difficulty: Easy Category: Remember4. The idea behind comparative advantage reflects the possibility that one party:
Reference: Explanation: Type: Multiple Choice Difficulty: Medium Category: Understand5. Alternate Outputs from One Day's Labor Input:USA: 12 bushels of wheat or 3 yards of textiles.India: 3 bushels of wheat or 12 yards of textiles.From the data, the USA:A. has an absolute advantage over India in the production of textiles.B. has an absolute advantage over India in the production of wheat.C. has a comparative advantage in the production of textiles.D. should export textiles to India.Answer: B
Reference: Explanation: Type: Multiple Choice Difficulty: Medium Category: Understand6. Alternate Outputs from One Day's Labor Input:USA: 12 bushels of wheat or 3 yards of textiles.India: 3 bushels of wheat or 12 yards of textiles.The opportunity cost of one bushel of wheat in India is:
Reference: Explanation: Type: Multiple Choice Difficulty: Medium Category: Understand

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