ECN 306 Final Exam 1 Questions With
100% Correct Answers 2026-2027
Updated.
assume the US currently grows 2 million tons of fruit and the resources absorbed in this
production could have produced 300,000 laptop computers. What is the opportunity cost of the
2 million tons of fruit? - Answer 300,000 laptops
suppose that South America could have instead produced the tons of fruit at at opportunity cost
of 150,000 laptops. Because of the difference in opportunity cost between the two regions, it
can be shown that tade gives the possibility of a - Answer mutually beneficial rearrangement
of world production
the potential for gins from the rearrangement of production amount countries is due to -
Answer differing opportunity costs
mercantilism advocated that a country - Answer promote exports over imports because it
viewed trade as a zero su, believing that one nations gain was another nations loss
how do you compute relative price - Answer other good/desired good
a country has comparative advantage in producing a good if - Answer its opportunity cost of
producing that good is lower than elsewhere
how do you know what the absolute value of it's slope conveys? - Answer opportunity cost of
horizontal in terms of vertical
for each hour worked, a US worker can produce 4 loaves of bread or 2 tons of steel. Canadian
workers can produce 2 loaves of bread or 1 ton of steel per hour. This info tells us that - Answer
the US has absolute advantage in bread and also in steel
before trade, suppose the cost of steel is 7 loaves of bread per ton in Japan. When Japan trades
with the rest of the world, the world price of steel is 9 loaves of bread per ton. This tells us that
- Answer japan will export steel because their opportunity cost is less than the rest of the
world
for each hour worked, a US worker can produce 4 loaves of bread or 2 tons of steel. Canadian
workers can produce 2 loaves of bread or 1 ton of steel per hour. This tells us that - Answer
neither country has comparative advantage in steel or bread
100% Correct Answers 2026-2027
Updated.
assume the US currently grows 2 million tons of fruit and the resources absorbed in this
production could have produced 300,000 laptop computers. What is the opportunity cost of the
2 million tons of fruit? - Answer 300,000 laptops
suppose that South America could have instead produced the tons of fruit at at opportunity cost
of 150,000 laptops. Because of the difference in opportunity cost between the two regions, it
can be shown that tade gives the possibility of a - Answer mutually beneficial rearrangement
of world production
the potential for gins from the rearrangement of production amount countries is due to -
Answer differing opportunity costs
mercantilism advocated that a country - Answer promote exports over imports because it
viewed trade as a zero su, believing that one nations gain was another nations loss
how do you compute relative price - Answer other good/desired good
a country has comparative advantage in producing a good if - Answer its opportunity cost of
producing that good is lower than elsewhere
how do you know what the absolute value of it's slope conveys? - Answer opportunity cost of
horizontal in terms of vertical
for each hour worked, a US worker can produce 4 loaves of bread or 2 tons of steel. Canadian
workers can produce 2 loaves of bread or 1 ton of steel per hour. This info tells us that - Answer
the US has absolute advantage in bread and also in steel
before trade, suppose the cost of steel is 7 loaves of bread per ton in Japan. When Japan trades
with the rest of the world, the world price of steel is 9 loaves of bread per ton. This tells us that
- Answer japan will export steel because their opportunity cost is less than the rest of the
world
for each hour worked, a US worker can produce 4 loaves of bread or 2 tons of steel. Canadian
workers can produce 2 loaves of bread or 1 ton of steel per hour. This tells us that - Answer
neither country has comparative advantage in steel or bread
