Sample Questions for Exam 3

Sample Questions for Exam 3 - Sample Questions for Exam 3...

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

View Full Document Right Arrow Icon
Sample Questions for Exam 3 1. Refer to Table A. Table A In the United Kingdom In the Rest of the World Productivity Umbrellas per labor hour 1.00 0.50 Units of corn per labor hour 0.20 0.70 If the United Kingdom shifts 1 hour of labor from the production of corn to the production of umbrellas and the rest of the world shifts 1 hour of labor from the production of umbrellas to the production of corn, total world production of corn will _______ by _______ units and total world production of umbrellas will _______ by _______. a. increase; 1; decrease; 1 b. increase; 1.43; increase 1 c. increase; 0.5; increase; 0.5 d. decrease; 0.5; increase; 0.7 2. If a country exports the good that it can produce at a low opportunity cost and imports those goods that it would otherwise produce at a high opportunity cost, we say that such trade is based upon _______. a. absolute advantage b. arbitrage c. labor productivity differences d. comparative advantage 3. Refer to Table B. Table B In the United Kingdom In the Rest of the World Labor hours to make: 1 umbrella 3.00 2.00 1 unit of corn 1.00 0.25
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 05/05/2010 for the course ECONOMICS ecn 306 taught by Professor Brada during the Spring '10 term at ASU.

Page1 / 4

Sample Questions for Exam 3 - Sample Questions for Exam 3...

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