Question 1

Figure 16-2
Number of workers needed to produce one unit of each of the following goods:
 
-In Figure 16-2,if Colombia produces four fewer calculators,then how many more radios could it produce?

Accepted Answer

The answer of Figure 16-2
Number of workers needed to produce...

Question 2

Figure 16-3
Quantities of goods that can be produced in one day with available resources:
 
-In Figure 16-3,if Costa Rica and Panama have identical resources,then Panama has a(n)

Accepted Answer

The answer of Figure 16-3
Quantities of goods that can be...

Question 3

Consider the following table on output producible per 100 labor hours:

Which of the following statements is correct?

Accepted Answer

The answer of Consider the following table on output producible...

Question 4

For each watch Switzerland produces,it gives up the opportunity to produce 50 pounds of cheese.Germany can produce one watch at a cost of 100 pounds of cheese.Which of the following is true?

Accepted Answer

Switzerland has a lower opportunity cost for producing watches (50 pounds of cheese) compared to Germany (100 pounds of cheese).

Question 5

Figure 16-2
Number of workers needed to produce one unit of each of the following goods:
 
-In Figure 16-2,what can be said regarding comparative advantage?

Accepted Answer

The answer of Figure 16-2
Number of workers needed to produce...

Question 6

For each watch Denmark produces,it gives up the opportunity to produce 50 pounds of cheese.France can produce two watches at a cost of 150 pounds of cheese.Which of the following is true?

Accepted Answer

The answer of For each watch Denmark produces,it gives up...

Question 7

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one statue is

Accepted Answer

To determine the opportunity cost of one statue, we need to find how many vases one could produce in the time it takes to produce one statue.

Let's start by finding the production rate of one worker per hour:

- 1/8 vase per hour + 1/16 statue per hour = 2/16 vase per hour + 1/16 vase per hour = 3/16 vase per hour

Now let's find the time it takes for 400 workers to produce one statue:

- 1 statue / (400 workers x 1/16 statue per hour) = 16 hours

So in 16 hours, 400 workers could produce either:

- 16 x (400 workers x 1/8 vase per hour) = 800 vases 
- 1 statue and (16 x (400 workers x 1/8 vase per hour)) = 1 statue and 800 vases

Therefore, the opportunity cost of one statue is 800 vases, or 2 vases per statue.

Therefore, the best choice is E.

Question 8

Suppose that for each automobile Japan produces it must forego producing 40 computers.The United States must forego producing 80 computers for each automobile it produces.Which of the following is true?

Accepted Answer

The opportunity cost of producing an automobile in Japan is 40 computers, while in the United States it is 80 computers. This means that the U.S. has a higher opportunity cost of producing automobiles and a comparative advantage in producing computers. Therefore, choice B is correct. Choice A is incorrect because Japan has a higher opportunity cost of producing automobiles, not a comparative advantage in producing computers. Choice C is incorrect because the U.S. has a higher opportunity cost of producing computers, not a comparative advantage in producing automobiles. Choice D is incorrect because we don't have enough information to determine which country has an absolute advantage in producing automobiles. Finally, choice E is incorrect because the opportunity cost is not the same for both countries.

Question 9

Given an opportunity cost of 10 bicycles per 1 sewing machine in Germany and 20 bicycles per 2 sewing machines in Hungary,

Accepted Answer

The answer of Given an opportunity cost of 10 bicycles...

Question 10

Figure 16-3
Quantities of goods that can be produced in one day with available resources:
 
-In Figure 16-3,the opportunity cost in Costa Rica of producing one additional bicycle is

Accepted Answer

The opportunity cost of producing one additional bicycle in Costa Rica is 5 rugs, as it represents the number of rugs that must be forgone to produce one more bicycle.

Question 11

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one vase is

Accepted Answer

The answer of In a Mexican factory,each worker can produce...

Question 12

Figure 16-3
Quantities of goods that can be produced in one day with available resources:
 
-In Figure 15-3,the opportunity cost in Panama of producing one additional rug is

Accepted Answer

The answer of Figure 16-3
Quantities of goods that can be...

Question 13

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the maximum number of statues that could be produced in one hour is

Accepted Answer

The answer of In a Mexican factory,each worker can produce...

Question 14

Assume Japan must forego producing 60 computers for each automobile it produces.Moreover,the United States can produce one automobile if it forgoes producing 80 computers.Which of the following is true?

Accepted Answer

The answer of Assume Japan must forego producing 60 computers...

Question 15

Figure 16-2
Number of workers needed to produce one unit of each of the following goods:
 
-In Figure 16-2,if Korea produces two fewer radios,then how many more calculators could it produce?

Accepted Answer

Looking at the chart, we see that producing one radio requires 4 workers and producing one calculator requires 3 workers. If Korea produces two fewer radios, it would free up 8 workers (4 workers per radio x 2 fewer radios). Since it takes 3 workers to produce one calculator, Korea could then produce 8/3=2.67 calculators. However, since Korea cannot produce a fraction of a calculator, the answer would be that it could produce 1 more calculator. Therefore, the answer is C) 1.

Question 16

Consider the following table on labor hours needed per unit of output:

Ignoring nonlabor inputs,which of the following statements is correct?

Accepted Answer

The answer of Consider the following table on labor hours...

Question 17

Consider the following information on labor hours needed per unit of output:

Ignoring nonlabor inputs,which of the following statements is correct?

Accepted Answer

The answer of Consider the following information on labor hours...

Question 18

Comparative advantage is determined by the

Accepted Answer

Comparative advantage is determined by the opportunity costs of producing a good in two different countries. This means that a country has a comparative advantage in producing a good if it has a lower opportunity cost (in terms of producing other goods) than another country. In other words, a country should specialize in producing and exporting goods that it can produce at a lower opportunity cost than other countries, and import goods that other countries can produce at a lower opportunity cost.

Question 19

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the maximum number of vases that could be produced in one hour is

Accepted Answer

Each worker can produce 1/8 of a vase per hour. So, 400 workers can produce 400 * 1/8 = 50 vases per hour.

Question 20

If Canada can produce 500 TV sets at the cost of 10 cars,while Mexico can produce 1,000 TV sets at the cost of 8 cars,we know the following:

Accepted Answer

The answer of If Canada can produce 500 TV sets...

Quiz 17: Comparative Advantage and the Gains From International Trade

Figure 16-2 Number of workers needed to produce one unit of each of the following goods: -In Figure 16-2,if Colombia produces four fewer calculators,then how many more radios could it produce?

Figure 16-3 Quantities of goods that can be produced in one day with available resources: -In Figure 16-3,if Costa Rica and Panama have identical resources,then Panama has a(n)

Consider the following table on output producible per 100 labor hours: Which of the following statements is correct?

For each watch Switzerland produces,it gives up the opportunity to produce 50 pounds of cheese.Germany can produce one watch at a cost of 100 pounds of cheese.Which of the following is true?

Figure 16-2 Number of workers needed to produce one unit of each of the following goods: -In Figure 16-2,what can be said regarding comparative advantage?

For each watch Denmark produces,it gives up the opportunity to produce 50 pounds of cheese.France can produce two watches at a cost of 150 pounds of cheese.Which of the following is true?

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one statue is

Suppose that for each automobile Japan produces it must forego producing 40 computers.The United States must forego producing 80 computers for each automobile it produces.Which of the following is true?

Given an opportunity cost of 10 bicycles per 1 sewing machine in Germany and 20 bicycles per 2 sewing machines in Hungary,

Figure 16-3 Quantities of goods that can be produced in one day with available resources: -In Figure 16-3,the opportunity cost in Costa Rica of producing one additional bicycle is

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one vase is

Figure 16-3 Quantities of goods that can be produced in one day with available resources: -In Figure 15-3,the opportunity cost in Panama of producing one additional rug is

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the maximum number of statues that could be produced in one hour is

Assume Japan must forego producing 60 computers for each automobile it produces.Moreover,the United States can produce one automobile if it forgoes producing 80 computers.Which of the following is true?

Figure 16-2 Number of workers needed to produce one unit of each of the following goods: -In Figure 16-2,if Korea produces two fewer radios,then how many more calculators could it produce?

Consider the following table on labor hours needed per unit of output: Ignoring nonlabor inputs,which of the following statements is correct?

Consider the following information on labor hours needed per unit of output: Ignoring nonlabor inputs,which of the following statements is correct?

Comparative advantage is determined by the

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the maximum number of vases that could be produced in one hour is

If Canada can produce 500 TV sets at the cost of 10 cars,while Mexico can produce 1,000 TV sets at the cost of 8 cars,we know the following: