PS3 - ECON 2106-C Practice Problem 3 Multiple Choice...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 2106-C 1 Practice Problem 3 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Consider a shoemaker and a vegetable farmer. Potentially, trade could benefit both individuals if a. the shoemaker can produce only shoes and the vegetable farmer can produce only vegetables. b. the shoemaker is capable of growing vegetables, but he is not very good at it. c. the vegetable farmer is better at growing vegetables and better at making shoes than the shoemaker. d. All of the above are correct. ____ 2. Without trade, a. a country is better off because it will have to learn to be self-sufficient without trade. b. a country's production possibilities frontier is also its consumption possibilities frontier. c. a country can still benefit from international specialization. d. interdependence is more extensive than it would be with trade. Table 3-1 Labor Hours Needed to Make 1 Pound of: Pounds produced in 40 hours: Meat Potatoes Meat Potatoes Farmer 8 2 5 20 Rancher 4 5 10 8 ____ 3. Refer to Table 3-1 . The opportunity cost of 1 pound of meat for the farmer is a. 1/4 hour of labor. b. 4 hours of labor. c. 4 pounds of potatoes. d. 1/4 pound of potatoes. ____ 4. Refer to Table 3-1 . The farmer has an absolute advantage in a. potatoes, and the rancher has a comparative advantage in meat. b.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/15/2010 for the course ECON 2106 taught by Professor Minjaesong during the Spring '06 term at Georgia Institute of Technology.

Page1 / 5

PS3 - ECON 2106-C Practice Problem 3 Multiple Choice...

This preview shows document pages 1 - 2. Sign up to view the full document.

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