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Exam1 Review Test - New(Spring 07 Eco 2023 Review Exam 1...

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New (Spring 07) Eco 2023 Review Exam 1: Answers at the end of the exam. MULTIPLE CHOICE. Choose the alternative that best completes the statement or answers the question (in my opinion). 1) The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n): A) comparative advantage. B) absolute advantage. C) specialization advantage. D) market advantage. Figure 4.8 2) Refer to Figure 4.8. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from _D 0 to D? 3) The price of computer chips used in the manufacture of personal computers has fallen significantly over the past 15 years. Over the same period consumer incomes and taste and preferences for electronic conviences has also increased. The fact that the real price of personal computers has decreased over this time period suggests: Apples/hour Carrots/hour Willy 6 4 Blithe 3 1 Table 3.1 4) Based on the data in Table 3.1, if Willy and Blithe choose to specialize and trade, then: 1
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New (Spring 07) Eco 2023 Review Exam 1: Answers at the end of the exam. 5) Consider two individuals, Willy and Blithe, who produce carrots and apples. Table 3.1 shows how much of each good Willy and Blithe can produce in one hour. Willy's opportunity cost of one apple is: A) 2/3 carrot. B) 4 carrots. C) 1 carrot. D) 6 carrots.
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