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ECON 1002 EXAM 2 | LATEST UPDATED | ACTUAL
EXAM QUESTIONS WITH SOLUTIONS | 100% RATED
CORRECT | 100% VERFIED SOLTIONS | ALREADY
GRADED A+
The benefits of trade include:
I. Higher output due to specialization
II. Higher output due to comparative advantage
III. Increased welfare when preferences differ - (ANSWER)I, II, and III
If instead of specialized doctors (neurologists, cardiologists, gastroenterologists,
etc.) we had doctors who each knew the same thing about all aspects of medicine
it would be: - (ANSWER)Worse because total medical knowledge in society would
decrease.
As trade becomes more widespread, specialization ____, in which turn ____
productivity. - (ANSWER)increases ; inceeases
The ability of one producer to produce one good or service using fewer inputs
than another producer is: - (ANSWER)Absolute advantage
A produced has a comparative advantage over the producers if his production of
the good involves - (ANSWER)A lower opportunity cost
, 2
According to the theory of comparative advantage, a country should specialize in
producing a good that involves - (ANSWER)A lower opportunity cost than that of
other countries.
The real cost of producing a good is: - (ANSWER)The opportunity cost of
producing the good
Figure: PFF Goods X & Y) Refer to the figure. Which of the points representing
various consumption possibilities for the country portrayed above is only
attainable through foreign trade? - (ANSWER)Point C
(Figure: PFF Nickel & Textiles) Refer to the figure. What is the maximum amount
of textiles China can produce? - (ANSWER)8 tons
(Figure: PFF Nickel & Textiles) Refer to the figure. How many tons of text tiles
does Australia give up to produce one ton of nickel - (ANSWER)1/3
(Table: Iphone and Ipod Production) According to the table on iPhone and iPod
Production, which of the following is TRUE? - (ANSWER)The United States has an
absolute advantage in producing both Iphones and Ipods.
(Table: Iphone and Ipod Production) According to the table on iPhone and iPod
Production, the opportunity cost of production one iPhone is: - (ANSWER)3/4 of
one iPod for Canada, and one iPod for the United States.
ECON 1002 EXAM 2 | LATEST UPDATED | ACTUAL
EXAM QUESTIONS WITH SOLUTIONS | 100% RATED
CORRECT | 100% VERFIED SOLTIONS | ALREADY
GRADED A+
The benefits of trade include:
I. Higher output due to specialization
II. Higher output due to comparative advantage
III. Increased welfare when preferences differ - (ANSWER)I, II, and III
If instead of specialized doctors (neurologists, cardiologists, gastroenterologists,
etc.) we had doctors who each knew the same thing about all aspects of medicine
it would be: - (ANSWER)Worse because total medical knowledge in society would
decrease.
As trade becomes more widespread, specialization ____, in which turn ____
productivity. - (ANSWER)increases ; inceeases
The ability of one producer to produce one good or service using fewer inputs
than another producer is: - (ANSWER)Absolute advantage
A produced has a comparative advantage over the producers if his production of
the good involves - (ANSWER)A lower opportunity cost
, 2
According to the theory of comparative advantage, a country should specialize in
producing a good that involves - (ANSWER)A lower opportunity cost than that of
other countries.
The real cost of producing a good is: - (ANSWER)The opportunity cost of
producing the good
Figure: PFF Goods X & Y) Refer to the figure. Which of the points representing
various consumption possibilities for the country portrayed above is only
attainable through foreign trade? - (ANSWER)Point C
(Figure: PFF Nickel & Textiles) Refer to the figure. What is the maximum amount
of textiles China can produce? - (ANSWER)8 tons
(Figure: PFF Nickel & Textiles) Refer to the figure. How many tons of text tiles
does Australia give up to produce one ton of nickel - (ANSWER)1/3
(Table: Iphone and Ipod Production) According to the table on iPhone and iPod
Production, which of the following is TRUE? - (ANSWER)The United States has an
absolute advantage in producing both Iphones and Ipods.
(Table: Iphone and Ipod Production) According to the table on iPhone and iPod
Production, the opportunity cost of production one iPhone is: - (ANSWER)3/4 of
one iPod for Canada, and one iPod for the United States.
