OldExam1

# OldExam1 - Name Class Date ID A Exam 1 Fall 2009 Multiple...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Exam 1 Fall 2009 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Suppose that Bob and John each are going to spend the weekend picking apples and peppers, the graphs below represent all the possible combinations that each can pick. Apples Apples Peppers Peppers Bob John 20 15 12 4 ____ 1. What is the opportunity cost of peppers for John? a. 12 apples c. 3 apples b. 1/3 apples d. zero ____ 2. What is the opportunity cost of apples for Bob? a. 15 peppers c. 4/3 peppers b. 3/4 peppers d. 2 peppers ____ 3. Which of the following is correct? a. John has the comparative advantage in peppers, Bob has the comparative advantage in apples c. Bob has the comparative advantage at both apples and peppers b. John has the comparative advantage in apples, Bob has the comparative advantage in peppers d. John has the comparative advantage at both apples and peppers ____ 4. If each were to specialize in one and trade with the other, what would be the possible “cost” of peppers? a. 9 / 4 > price > 2 c. 3 > price > 4/3 b. 4/3> price>1/3 d. 3 > price > 2

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Name: ________________________ ID: A 2 ____ 5. Which of the following represents the joint PPF for Bob and John? a. Apples Peppers Joint PPF 32 19 15 20 c. Apples Peppers Joint PPF 32 19 15 12 b. Apples Peppers Joint PPF 32 19 12 15 d. Apples Peppers Joint PPF 32 19 15 ____ 6. If Bob and John are producing jointly, what is the opportunity cost of peppers if the two of them currently have 5 peppers? a. 3/4 c. 1/3 b. 4/3 d. 3 ____ 7. Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, while Sandy can make 6 tables or 18 chairs. Given this, we know that a. Mike has a comparative advantage in tables. b. Sandy has an absolute advantage in chairs. c. Mike has an absolute advantage in tables. d. Sandy has a comparative advantage in tables.
Name: ________________________ ID: A 3 Suppose the PPF’s for Kansas and South Dakota are depicted below. Use this information to answer the questions that follow. 18 15 12 12 Corn Wheat Kansas Wheat Corn South Dakota ____ 8. Suppose that with no trade Kansas and South Dakota each spend half their resources on corn and half their resources on wheat. If they each switch to what they have a comparative advantage producing, what will be

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OldExam1 - Name Class Date ID A Exam 1 Fall 2009 Multiple...

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