ECO 2

QN=29 (17747) A country that currently does not trade with other countries could benefit by

• a. restricting imports and promoting exports

• b. promoting imports and restricting exports.

• c. restricting both imports and exports.

• d. not restricting trade.

QN=30 (17757) Refer to Figure 3-3. If Enid must work 0.25 hour to produce each taco, then her production possibilities frontier is based on how many hours of work?

• a. 40 hours

• b. 100 hours

• c. 400 hours

• d. 1600 hours

QN=31 (17744)If the production possibilities frontier is bowed outward, then "?" could be

• a. 50.

• b. 75

• c. 100.

• d. 125.

QN=32 (17729) By definition, exports are

• a. limits placed on the quantity of goods brought into a country.

• b. goods in which a country has an absolute advantage

• c. people who work in foreign countries.

• d. goods produced domestically and sold abroad.

QN=34 (17737) Refer to Table 3-2. Aruba's opportunity cost of one cooler is

• a. 0.4 radio and Iceland's opportunity cost of one cooler is 0.25 radio.

• b. 0.4 radio and Iceland's opportunity cost of one cooler is 4 radios.

• c. 2.5 radios and Iceland's opportunity cost of one cooler is 0.25 radio.

• d. 2.5 radios and Iceland's opportunity cost of one cooler is 4 radios.

QN=35 (17745) Absolute advantage is found by comparing different producers'

• a. opportunity costs.

• b. payments to land, labor, and capital

• c. input requirements per unit of output.

• d. locational and logistical circumstances.

QN=36 (17741) Refer to Figure 3-4. The opportunity cost of 1 novel for Jordan is

• a. 1/3 poem.

• b. 3 poems

• c. 4 poems

• d. 12 poems.

QN=37 (17751) Refer to Table 3-5. England has a comparative advantage in the production of

• a. cheese and Spain has a comparative advantage in the production of bread

• b. bread and Spain has a comparative advantage in the production of cheese.

• c. both goods and Spain has a comparative advantage in the production of neither good.

• d. neither good and Spain has a comparative advantage in the production of both goods.

QN=38 (17724) Two people can benefit from specialization and trade by obtaining a good at a price that is

• a. lower than his or her opportunity cost of that good.

• b. the same as his or her opportunity cost of that good

• c. higher than his or her opportunity cost of that good.

• d. different than his or her opportunity cost of that good.

QN=39 (17746) For two individuals who engage in the same two productive activities, it is impossible for one of the two individuals to

• a. have a comparative advantage in both activities.

• b. have an absolute advantage in both activities

• c. be more productive per unit of time in both activities.

• d. gain from trade with each other.