ECONOMICS Answer Key HW1

ECONOMICS Answer Key HW1 - Econ 102 Section 4 Homework #1...

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

View Full Document Right Arrow Icon
Econ 102 Section 4 Homework #1 Due: February 13 Multiple Choice Questions 1.To say that an individual possesses an absolute advantage in the production of software means that that individual A) has a lower opportunity cost of producing software. B) can produce more and/or higher quality software in a given amount of time. C) was the first to create the software. D) charges the lowest price for software. E) has the most venture capital. Answer: B 2.If Scout has an absolute advantage over Dill, A) Scout has more money than Dill. B) the problem of scarcity applies to Dill but not to Scout. C) the problem of scarcity applies to Scout, but not to Dill. D) Scout can accomplish more in a given period of time than can Dill. E) Both A and D are correct. Answer: D 3.If Leslie can produce two pairs of pants in an hour while Eva can make one pair an hour, then it must be the case that A) Leslie has a comparative advantage. B) Eva has an absolute advantage. C) Leslie has an absolute advantage. D) Eva has a comparative advantage. E) Leslie has both comparative and absolute advantage. Answer: C 4.Having a comparative advantage in a particular task means that A) you are better at it than other people. B) you give up more to accomplish that task than do others. C) you give up less to accomplish that task than do others D) you have specialized in that task, while others have not. E) you prefer that task over other tasks. Answer: C 5.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. E) All of the above must be true for Larry to have a comparative advantage. Answer: D
Background image of page 1

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

View Full DocumentRight Arrow Icon
6.Which of the following statements is always true? A) Comparative advantage implies absolute advantage. B) Absolute advantage implies comparative advantage. C) Comparative advantage does not require absolute advantage. D) Absolute advantage requires comparative advantage. E) Comparative advantage requires absolute advantage. Answer: C 7.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; Bob D) comparative; both of them B) comparative; Jane E) insufficient information to say C) comparative; Bob Answer: E Use the following to answer questions 8-15: S h o e s P e r H o u r P a n t s P e r H o u r J e n n y 3 2 C r a i g 4 3 8.According to the data, Jenny has an absolute advantage in A) the production of shoes. D) both shoe and pants production. B) neither shoe nor pants production. E) pants and possibly shoe production. C) the production of pants. Answer: B 9.Craig possesses an absolute advantage in A) the production of shoes. D) both shoe and pants production.
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 03/24/2012 for the course ECON 101 taught by Professor Smith during the Spring '11 term at University of Phoenix.

Page1 / 15

ECONOMICS Answer Key HW1 - Econ 102 Section 4 Homework #1...

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