econ3 - Submitted by Le Thao(THAOLE2 on 11:55:21 PM Points...

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Submitted by Le, Thao (THAOLE2) on 9/19/2011 11:55:21 PM Points Awarded 7.00 Points Missed 3.00 Percentage 70.0% 1. Markets exist A) so people can buy and sell things. B) because people are self-sufficient. C) because people specialize in the production of many products. D) as an arrangement where buyers do not interact with sellers. Points Earned: 0.5/0.5 Correct Answer(s): A 2.
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Kites /hour Snowboards /hour Jesse 8 1 April 12 3 Table 3.1 Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one kite is painting A) 1/12 of a snowboard. B) 1/8 of a snowboard. C) 1/3 of a snowboard. D) 3 snowboards. Points Earned: 0.5/0.5 Correct Answer(s): B 3. Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one snowboard is painting A) 1/8 of a kite. B) 1.5 kites. C) 8 kites. D) 12 kites. Points Earned: 0.5/0.5 Correct Answer(s): C 4. Based on the data in Table 3.1 A) April should specialize in painting kites and trade for snowboards. B) April should specialize in painting snowboards and trade for kites. C) Jesse should specialize in both goods. D) April should specialize in both goods. Points Earned: 0.0/0.5 Correct Answer(s): B
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5. The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n. A) market advantage. B) comparative advantage. C) absolute advantage. D) specialization advantage.
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econ3 - Submitted by Le Thao(THAOLE2 on 11:55:21 PM Points...

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