__172.20.40.61_Materials_l2xie-0010_Chapter_2

__172.20.40.61_Materials_l2xie-0010_Chapter_2 - Chapter 2...

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

View Full Document Right Arrow Icon
Chapter 2 Student: ___________________________________________________________________________ 1. If a nation can produce a good more quickly than any other nation, that nation has a(n) A. comparative advantage. B. absolute advantage. C. relative advantage. D. specialization advantage. 2. Larry has a comparative advantage in writing a term paper if he A. can write a paper faster than the other students in class. B. has an absolute advantage in writing a term paper. C. always earns an A on his papers. D. has a low opportunity cost for writing a term paper. 3. Which of the following statements is always true? A. Absolute advantage implies comparative advantage. B. Comparative advantage does not require absolute advantage. C. Absolute advantage requires comparative advantage. D. Comparative advantage requires absolute advantage. 4. If Jane can produce 3 pairs of shoes hourly, while Bob can produce 2, then one can infer that the __________ advantage belongs to __________. A. absolute; Jane B. comparative; Jane C. comparative; Bob D. comparative and absolute; Jane
Background image of page 1

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

View Full DocumentRight Arrow Icon
5. Refer to the figure above. According to the data, Corey has an absolute advantage in A. the production of pizza. B. neither production of pizza nor delivering pizza. C. delivering pizza. D. both production of pizza and delivering pizza. . 6. Refer to the figure above. According to the data, Pat has an absolute advantage in A. the production of pizza. B. neither production of pizza nor delivering pizza. C. delivering pizza. D. both production of pizza and delivering pizza. 7. Refer to the figure above. Corey's opportunity cost of producing an extra pizza is delivering ______ pizzas. A. 2 B. 3/2 C. 2/3 D. 1/2 8. Refer to the figure above. Corey's opportunity cost of delivering an extra pizza is producing ______ pizzas.
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.

This note was uploaded on 04/19/2011 for the course ECON 1 taught by Professor Tang during the Spring '08 term at UCSD.

Page1 / 8

__172.20.40.61_Materials_l2xie-0010_Chapter_2 - Chapter 2...

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