Test Bank for Modern Principles of Economics 5th Edition by Tyler Cowen, Alex Taborrok

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nn




TestBankfor n n




Principles of
nn nn




Economics
nn




5th Edition
nn nn




Frank nn




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, Full nnfile nnat nnhttp://testbankscafe.eu/Test-Bank-for-Principles-of-Economics-5th-Edition-
Frank


Chapter
nn 02 Comparative
nn


nn Advantage


Multiple nnChoice nnQuestions


1. To n n say n n that n n an n n individual n n possesses n n an n n absolute n n advantage
n n in n n the n n production n n of nnsoftware nn means nnthat nn individual:




A. has nn a nn lower nnopportunity nncost nnof
nnproducing nnsoftware.

B. can nn produce nn more nn and/or nn higher nn quality nn software nnin
nna nn given n n amount nnof nntime.

C. was nn the nn first nnto nn create
nnthe nnsoftware.

D. charges nnthe nn lowest nn price
nnfor nnsoftware.



2. If nnScout nn has nn an nn absolute nn advantage nn over nnDill:


A. Scout nnhas nnmore nnmoney
nnthan nnDill.

B. the nn problem nn of nn scarcity nn applies nnto nn Dill,
nnbut nnnot nn to nn Scout.

C. the nn problem nn of nn scarcity nn applies nnto
nnScout, nn but nn not nnto nn Dill.

D. Scout n n can nn accomplish n n more n n in nn a n n given n n period
nnof nntime n n than nncan nn Dill.



3. If n n Leslie n n can n n produce nn two n n pairs n n of n n pants n n in n n an n n hour n n while nn Eva
nn can n n make n n one n n pair nn an nn hour, nnthen nnit nnmust nn be nnthe nncase nnthat:


A. Leslie nnhas nna
nncomparative

nnadvantage.

B. Leslie nnhas nnan
nnabsolute

nnadvantage.

C. Eva nnhas nna
nncomparative

nnadvantage.

D. Leslie nn has nn both nncomparative nnand
nnabsolute n n advantage.




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Frank

4. If n n a n n nation n n can n n produce n n a n n good nn more nn quickly nn than nn any nn other
nn nation, n n that n n nation n n has nna(n):


A. comparative
nnadvantage.

B. absolute
nnadvantage

.
C. relative
nnadvantage

.
D. specialization
nnadvantage.



5. Having n n a nn comparative n n advantage n n in nn a nn particular n n task n n means nn that:


A. you nnare nnbetter nnat nnit nnthan
nnother n n people.

B. you nn give nn up nn more nnto nnaccomplish nnthat nntask
nnthan nn do n n others.

C. you nn give nn up nn less nn to n n accomplish nnthat nntask
n n than nn do nnothers.

D. you nn have nn specialized nnin nnthat nntask, nn while
nnothers nn have nn not.



6. Larry nn has nn a nn comparative nn advantage nn in nn writing nn a nn term nn paper nn if nn he:


A. can nnwrite nna nnpaper nnfaster nnthan nnthe nnother
nnstudents nnin nnclass.

B. has nnan nnabsolute nnadvantage nnin nnwriting
nna nnterm nnpaper.

C. always nnearns nnan nnA
nnon nnhis nnpapers.

D. has nnthe nn lowest nnopportunity nncost nnfor
nnwriting nn a nnterm nn paper.



7. If nna nn nation n n has n n the n n lowest nn opportunity nn cost nn of nn producing nn a nn good,
nn that nn nation n n has n n a(n):


A. comparative
nnadvantage.

B. absolute
nnadvantage

.
C. comparative nnadvantage nnand nnan
nnabsolute nnadvantage.

D. absolute nnadvantage nnand nnpossibly nna
nncomparative nnadvantage.




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Frank

8. Which nn of nn the nn following nn statements nn is nn always nn true?


A. Absolute nn advantage nn implies
nncomparative n n advantage.

B. Comparative nn advantage nn does nnnot nn require
nnabsolute n n advantage.

C. Absolute nnadvantage nnrequires
nncomparative nnadvantage.

D. Comparative nnadvantage nnrequires
nnabsolute nnadvantage.



9. If n n Jane n n can n n produce n n 3 n n pairs n n of n n shoes n n hourly, n n while n n Bob n n can

nn produce n n 2, n n then n n one n n can nninfer nn that nnthe advantage nn belongs nnto .


A. absolute;
nnJane

B. comparative;
nnJane

C. comparative;
Bob
D. comparative nn and
nnabsolute; nnJane



10.




Refer n n to nn the n n table n n above. nn According nn to nn the nn data, nn Corey nn has nn an
n n absolute nn advantage n n in:


A. the nn production
nnof nnpizza.

B. neither nn the nn production nn of nn pizza nn nor nnthe
nndelivery nn of nn pizza.

C. delivering
nnpizza.

D. both nnthe nn production nn of nn pizza nn and nn the
nndelivery nn of nn pizza.




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