ECON 102 Quiz 2 Answers (Penn State University)

ECON 102 Quiz 2 Answers (Penn State University) Question 1 Mark can produce 50 baseballs in a month and Katie can produce 60 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. What is Mark’s opportunity cost of producing 20 bats? Question 2 Mark can produce 50 baseballs in a month and Katie can produce 60 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. What is Katie’s opportunity cost of producing 20 bats? Question 3 Mark can produce 60 baseballs in a month and Katie can produce 42 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. ______________has the absolute advantage in the production of bats, and _____________ has the comparative advantage in the production of bats. Question 4 The negative slope of the Production Possibilities frontier best represents which of the following concepts? Question 5 Consider the following table which shows the yield per acre of cotton and wheat in two countries, USA and Mexico: _____________ has the absolute advantage in the production of wheat, and __________ has the comparative advantage in the production of wheat. Question 6 Consider the following table which shows the yield per acre of cotton and wheat in two countries, USA and Mexico: In Mexico, the opportunity cost of producing 1 unit of cotton is Question 7 Assume Oklahoma and South Dakota each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: Suppose the two states decide that they want to produce 150 total units of corn. What is the maximum amount of wheat that they could produce? Question 8 Refer to Figure 1. At point A, the opportunity cost of producing capital goods is _________ it is at point C. Question 9 Refer to Table 2. Suppose the country is producing 30 units of capital goods. What is the opportunity cost of producing an additional 10 units of capital goods? Question 10 Assume Oklahoma and South Dakota each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: What is the marginal rate of transformation between wheat and corn in Oklahoma?