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WorksheetsForeign Exchange Review
Total questions: 8
Worksheet time: 13mins
Name
Class
Date
1.
The U.S. can produce 50 cars and 25 tools. Peru can produce 20 cars and 15 tools. What is the opportunity cost of producing a car in the U.S.?
a)
.5 tools
b)
.5 cars
c)
.75 cars
d)
1.3 tools
2.
Who has the comparative advantage in cars?
a)
Peru
b)
neither
c)
U.S.
d)
not enough info
3.
The U.S. can produce 10 ipads or 20 phones. China can produce 20 ipads or 30 phones. Who should produce what?
a)
U.S.-ipads
China- phones
China- phones
b)
U.S. phones
China- ipads
China- ipads
c)
both should produce ipads
d)
they should not specialize
4.
What is the opportunity cost of producing 1 ipad in the U.S.?
a)
2 phones
b)
1.5 phones
c)
.5 phones
d)
.33 phones
5.
What is the opportunity cost of producing 1 phone in China?
a)
2 ipads
b)
.5 ipads
c)
.66 ipads
d)
1.5 ipads
6.
The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.
Which country has the comparative advantage in producing trucks and what is their opportunity cost?
Which country has the comparative advantage in producing trucks and what is their opportunity cost?
a)
Japan, 1/3 airplane per truck
b)
US, 1/2 airplane per truck
c)
US, 2 airplanes per truck
d)
Japan, 3 airplanes per truck
7.
The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.
Which country has the comparative advantage in producing airplanes and what is their opportunity cost?
Which country has the comparative advantage in producing airplanes and what is their opportunity cost?
a)
Japan, 1/3 trucks per airplane
b)
US, 1/2 trucks per airplane
c)
US, 2 trucks per airplane
d)
Japan, 3 trucks per airplane
8.
Along a straight PPC the U.S. can produce at most 20 thousand units of cars and 30 thousand bushels of corn. Along a straight PPC Mexico can produce at most 7 thousand units of cars or 14 thousand bushels of corn. Who has the COMPARATIVE advantage in corn production?
a)
The U.S.
b)
Mexico
c)
Not enough information
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