EC201.w04.m1

EC201.w04.m1 - mid.term.1.w04 Multiple Choice Identify the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
mid.term.1.w04 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Graph 3-2 These figures illustrate the production possibilities available to Tom and Nicole with 40 hours of labor. ____ 1. Refer to Graph 3-2. The opportunity cost of 1 video for Tom is a. 4 books. b. 2 books. c. 1 book. d. 1/2 book. ____ 2. Refer to Graph 3-2. The opportunity cost of 1 book for Nicole is a. 40 videos. b. 8 videos. c. 5 videos. d. 1/8 video. ____ 3. Refer to Graph 3-2. Nicole has an absolute advantage in __________ and Tom has an absolute advantage in __________. a. both goods, neither good b. neither good, both goods c. books, videos d. videos, books ____ 4. Refer to Graph 3-2. Nicole has a comparative advantage in __________ and Tom has a comparative advant- age in __________. a. videos, books b. both goods, neither good c. books, videos d. neither good, books ____ 5. Refer to Graph 3-2. If Tom and Nicole devote 1/2 of their time (20 hours) to the production of each good, total production of books by both would be __________ and total production of videos by both would be __________.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
a. 42, 9 b. 21, 4.50 c. 9, 42 d. 4.50, 21 ____ 6. Refer to Graph 3-2. If Tom and Nicole both specialize in the good in which they have a comparative advant- age, total production of books will be __________ and total production of videos will be __________. a. 40, 4 b. 42, 9 c. 9, 42 d. 4, 40 ____ 7. The gains from trade are a. higher from trade between a rich nation and a poor nation. b. based on different wage rates between nations. c. a result of more efficient resource allocation. d. based on the principle of absolute advantage. ____ 8. Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are a. complementary goods. b. substitute goods. c. unrelated goods. d. normal goods. ____ 9. If a decrease in income increases the demand for a good, then a. the good is a substitute good. b. the good is a complement good. c. the good is a normal good. d. the good is an inferior good. ____ 10. Which of the following is a determinant of demand? a. the price of a substitute good b. the price of a complement good c. the price of the good next month d. all of the above ____ 11. A demand schedule is a a. table showing the relationship between the price of a good and the quantity supplied. b. table showing the relationship between income and the quantity of the good demanded. c.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

EC201.w04.m1 - mid.term.1.w04 Multiple Choice Identify the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online