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Unformatted text preview: Econ 1014 Principles of Microeconomics Summer 2012 i Homework 3 Due on Jul 11 in Class
Note: (1) Please print out this file and circle the correct answer.
(2) Staple all pages. (3) No extra credit, because no typing is needed. Multiple Choice Questions. (1 point each) 1. Suppose a gardener produces both green beans and corn in her garden. If she must give up 14 bushels of
com to get 5 bushels of green beans, then her opportunity cost of l bushel of green beans is . 0.36 bushel ofcorn. H a 2.8 bushels ofcorn. ‘ —6’ r 2‘3
c. 14 bushels of corn. 1 ‘ \~ ’34:?)
d. 70 bushels of com. A: . “a, r S 2. If labor in Mexico is less productive than labor in the United States in all areas of production,
a. then neither nation can benefit from trade.
b. then Mexico can benefit from trade but the United States carmot.
c. then the United States will have a comparative advantage relative to Mexico in the production of all goods.
@ then both Mexico and the United States still can benefit fiom trade. Table 3-1 Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate.
(PPF is a straight line) - 3. Refer to Table 3-1. Which of the following combinations of corn and pork could Sardi produce in one
8-hour day?
a. 6 bushels of corn and 35 pounds of pork 9 bushels of corn and 25 pounds of pork
c. 15 bushels of corn and 20 pounds of pork
d: 24 bushels of corn and 40 pounds of pork Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant
rate. - to M1 Unit of Produced in 40 Hours -_ i Econ 1014 Principles of Microeconomics Summer 2012 4. Refer to Table 3-5. The opportunity cost of 1 unit of cheese for England is 1/4 unit of bread. b. 1 hour of labor. \_ _ - fi /c. 4 units of bread. ‘ " / i“ I
'J -, . d. 4 hours of labor. Li Refer to Table 3-5. The opportunity cost of 1 unit of cheese for Spain is
1/2 unit of bread.
2 hours of labor. 1' 7 g ’ _L 2 units of bread. ‘— l/o I Z
4 hours of labor. Refer to Table 3-5. The opportunity cost of 1 unit of bread for England is
1/4 unit of cheese. _ l/4 hour of labor. I Q” 4 units of cheese. A ‘3 " . O 4 hours of labor. Refer to Table 3-5. The opportunity cost of 1 unit of bread for Spain is
1/2 unit of cheese. / ‘
1/2 hour of labor. s .2: 2 units of cheese. .4;
8 hours of labor. Refer to Table 3-5. England has an absolute advantage in the production of
cheese and Spain has an absolute advantage in the production of bread. bread and Spain has an absolute advantage in the production of cheese. both goods and Spain has an absolute advantage in the production of neither good.
neither good and Spain has an absolute advantage in the production of both goods. (orrm‘ 0pr 4‘1 3 4 Refer to Table 3-5. England has a comparative advantage in the production of
cheese and Spain has a comparative advantage in the production of bread. bread and Spain has a comparative advantage in the production of cheese. both goods and Spain has a comparative advantage in the production of neither good.
neither good and Spain has a comparative advantage in the production of both goods. Refer to Table 3-5. England should export
cheese and import bread. bread and import cheese. both goods and import neither good. neither good and import both goods. ...
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- Fall '08
- RYAN
- Economics, Microeconomics, Comparative Advantage, Opportunity Cost
