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

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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, 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 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
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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 __________. 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
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