Economics Quiz

Which of the following is a reason people choose to depend on others for goods and services EXCEPT ?

• to improve their lives

• to allow them to enjoy a greater variety of goods and services

• to consume more of each good without working any more hours

• to allow people to produce outside their production possibilities frontiers

Absolute advantage is found by comparing different producers’

• marginal cost.

• output requirements per unit of input.

• input requirements per unit of output.

• production outputs.

Alex and Mark are two woodworkers who both make tables and chairs. In one month, Alex can make 4 tables or 20 chairs, while Mark can make 6 tables or 18 chairs. Given this, we know that

• Alex has an absolute advantage in chairs

• Alex has a comparative advantage in tables

• Mark has an absolute advantage in chairs

• Mark has a comparative advantage in chairs

Specialization and trade related to

• absolute advantage

• comparative advantage

• trade off

• division of the economic pie

Which of the following factor is related to comparative advantage ?

• output per hour

• opportunity cost

• efficiency

• bargaining strength in international trade

Assume that Linda and Tom can switch between producing wheat and producing beef at a constant rate. In 20 minutes, Linda can make 1 Bushel of Wheat and 1 Pound of Beef in 12 minutes. Tom can make 1 Bushel of Wheat in 15 minutes and 1 Pound of Beef in 10 minutes. What is Linda’s opportunity cost of producing one pound of beef?

• 3/5 bushel of wheat

• 6/5 bushel of wheat

• 4/3 bushel of wheat

• 5/3 bushel of wheat

Assume that Linda and Tom can switch between producing wheat and producing beef at a constant rate. In 20 minutes, Linda can make 1 Bushel of Wheat and 1 Pound of Beef in 12 minutes. Tom can make 1 Bushel of Wheat in 15 minutes and 1 Pound of Beef in 10 minutes. What is Linda’s opportunity cost of producing one bushel of wheat?

• 3/5 pound of beef

• 6/5 pound of beef

• 4/3 pound of beef

• 5/3 pound of beef

Assume that Linda and Tom can switch between producing wheat and producing beef at a constant rate. In 20 minutes, Linda can make 1 Bushel of Wheat and 1 Pound of Beef in 12 minutes. Tom can make 1 Bushel of Wheat in 15 minutes and 1 Pound of Beef in 10 minutes. What is Tom’s opportunity cost of producing one bushel of wheat?

• 2/3 pound of beef

• 3/4 pound of beef

• 5/6 pound of beef

• 3/2 pound of beef

Assume that Linda and Tom can switch between producing wheat and producing beef at a constant rate. In 20 minutes, Linda can make 1 Bushel of Wheat and 1 Pound of Beef in 12 minutes. Tom can make 1 Bushel of Wheat in 15 minutes and 1 Pound of Beef in 10 minutes. What is Tom’s opportunity cost of producing one pound of beef ?

• 2/3 bushel of wheat

• 3/4 bushel of wheat

• 5/6 bushel of wheat

• 3/2 bushel of wheat

The opportunity cost of an item is

• the number of hours that one must work in order to buy one unit of the item

• what you give up to get that item

• always less than the dollar value of the item

• always greater than the cost of producing the item