In a two good two country world if one country has an

This preview shows page 17 - 21 out of 143 pages.

37.In a two-good, two country world, if one country has an absolute advantage in theproduction of both goods, it cannot benefit by trading with the other country A) TrueB) False
Table for Individual Question Feedback Points Earned: 0.0/2. 0 Correct Answer(s): False 38.For a person to have a comparative advantage in producing a product, she must be able to produce that product at a lower opportunity cost than her competitors Table for Individual Question Feedback Points Earned: 2.0/2. 0 Correct Answer(s): True 39.It is possible to have a comparative advantage in producing a good or service without having an absolute advantage Table for Individual Question Feedback Points Earned: 2.0/2. 0 Correct Answer(s): True 40. An increase in the unemployment rate may be represented as a movement from
a point on the production possibilities frontier to a point inside the frontier Table for Individual Question Feedback Points Earned:2.0/2.0Correct Answer(s):76.00% True Homework 2 Submitted by WILSON, WESLEY (WBW5085) on 9/20/2015 11:34:51 PM Points Awarded Points Missed 24.0 0 Percentage 76.0 1. Part 1: 32 questions at 3 points each for a total of 96 pointsFOR FILL-IN-THE-BLANK questions: If your answer is in decimal form, round to 2 decimal places. For example, if your answer is .412, enter it into the fill-in-the-blank as .41, or if your answer is 1.415, enter it into the fill-in-the-blank as 1.42. Ifthere are no decimals in your answer, you will simply enter the number; so if youranswer is 2, enter 2 with no decimals. Do not enter any extra spaces, do not enter commas or $ or % symbols.Use the information below to answer questions 1-6Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie’s Farms is the only company that grows fresh apricots, while Darryl’s Dried Victuals is
the only producer of dried apricots. Fannie’s sells some of its apricots directly to consumers for consumption. The relevant revenue and cost information for each of the two firms in the economy is given below: Darryl's Dried Victuals Revenue from selling dried apricots: $2,300,000 Cost of buying fresh apricots from Fannie’s: 1,200,000 Interest on funds borrowed to buy drying racks: 250,000 Wages paid to employees 600,000 Taxes 100,000 Fannie’s Farms Revenue from selling fresh apricots: $2,000,000 Rent on land (including apricot trees) 300,000 Wages to employees 1,200,000 Taxes 200,000 Darryl's profit from selling dried apricots is: Table for Individual Question Feedback Points Earned: 3.0/3. 0 Correct Answer(s): B

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture