9/6/2020Homework 01: [20FA] ECON 104, Sec 003: Macroeconomic Analysis (WC, Dunne)10/20100 Bed Linens 125 Bed Linens 50 computer Chips 40 Computer Chips 3 / 3 ptsQuestion 14Using comparative advantage, which country should export bed linens?Neither country should export bed linens Both countries have a comparative advantage in bed linens, so bothshould export bed linensBoth countries have a comparative advantage in computer chips, so bothshould export bed linensUnited States South Korea
9/6/2020Homework 01: [20FA] ECON 104, Sec 003: Macroeconomic Analysis (WC, Dunne)11/20South Korea should import bed linens since they have acomparative advantage in producing computer chips since theyhave lower opportunity costs in producing computer chips and thusshould specialize in producing computer chips.The US should import computer chips since they have loweropportunity costs in producing bed linens relative to South Koreaand thus, have a comparative advantage in producing bed linensand should specialize in producing bed linens.3 / 3 ptsQuestion 15Economics promote which of the following as the way to make the bestdecision?Continue an enjoyable activity up to the point where its marginal benefitequals its marginal costContinue an enjoyable activity as long as you do not have to pay for it Continue an enjoyable activity until you cannot afford to pursue it Continue an enjoyable activity until it is no longer enjoyable 3 / 3 ptsQuestion 16By definition, economics is the study of
9/6/2020Homework 01: [20FA] ECON 104, Sec 003: Macroeconomic Analysis (WC, Dunne)12/20the choices people make to attain their goals, given their scarce resources how to make money in a market economy how to make money in the stock market supply and demand 3 / 3 ptsQuestion 17Which of the following best describes an assumption economists makeabout human behavior?They assume that individuals act randomly They assume that people take into account the question of fairness in alldecisions they makeThey assume that rational behavior is useful in explaining choices peoplemake even though people may not behave rationally all the timeThey assume that individuals act rationally all the time in all circumstances 3 / 3 ptsQuestion 18Which of the following is a normative economic statement?
9/6/2020Homework 01: [20FA] ECON 104, Sec 003: Macroeconomic Analysis (WC, Dunne)13/20When the price of gasoline rises, the quantity of gasoline purchased falls When the price of gasoline rises, transportation costs rise The price of gasoline is too high The current high price of gasoline is the result of strong worldwide demand3 / 3 ptsQuestion 19Which of the following is a positive economic statement?
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