Final - Name: _ Class: _ Date: _ ID: A Final Exam Multiple...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Final Exam Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 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 ____ 1. What is the opportunity cost of wheat in Kansas? a. 3/2 Corn c. 5/6 Corn b. 6/5 Corn d. 3/4 Corn ____ 2. Which of the following is true? a. Kansas has the absolute advantage in both Wheat and Corn, but South Dakota has the comparative advantage in wheat c. Kansas has the absolute advantage and comparative advantage for wheat, but South Dakota has the absolute and comparative advantage in corn b. Kansas has the absolute advantage in both Wheat and Corn, but South Dakota has the comparative advantage in corn d. Kansas has the absolute advantage and comparative advantage for corn, but South Dakota has the absolute and comparative advantage in wheat ____ 3. If each were to specialize in what they have the comparative advantage, what is the possible range of prices of corn? a. 6/5 > price > 1 c. 3/2 > price > 1 b. 1 > price > 5/6 d. 1 > price > 2/3
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Name: ________________________ ID: A 2 Suppose that Atlantis, Athens, and Sumeria can produce either Swords or Salt. Each has 100 units of labor and the productivity of each unit of labor is summarized below: Swords Salt Atlantis 5 5 Athens 2 5 Sumeria 10 1 ____ 4. What is the opportunity cost of one sword in Athens a. 1 Salt c. 2.5 Salt b. 5 Salt d. 2/5 Salt ____ 5. Suppose that Atlantis and Athens join together, which of the following depicts the joint-PPF for JUST Atlantis and Athens? a. Sw ords Salt 700 1000 500 500 c. Sw ords 700 1000 500 500 200 800 b. Sw ords Salt 700 1000 200 500 d. Sw ords Salt 700 1000
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Name: ________________________ ID: A 3 ____ 6. The joint PPF of all three countries is given below. Which of the following is true? Sw ords Salt 1700 1100 1000 1000 1500 500 A B C D a. At point A, Sumeria is producing only swords, Atlantis is producing only Salt, and Athens is producing both Salt and Swords c. At point C, the opportunity cost of one unit of Salt is 2/5 a sword b. At point B, Sumeria is producing only Swords, Atlantis and Athens are producing only Salt d. At point D, Sumeria is producing only swords, Atlantis is producing both Salt and Swords, and Athens is producing only Salt Read the following excerpt from the NYT dated September 2nd, 2008 and answer the questions that follow. C. J. Gunther for The New York Times As consumers buy less lobster this summer, prices are going down at places like James Hook and Company in Boston. This year, however, fewer people are ordering the region’s signature dish, driving down lobster prices and making
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This note was uploaded on 02/20/2012 for the course ECON 221 taught by Professor Gordanier during the Fall '08 term at South Carolina.

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Final - Name: _ Class: _ Date: _ ID: A Final Exam Multiple...

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