BUSA CH 2 Exam 2026 Questions and
Answers
Assume France and Niger can both produce grain and dates, and that the only
limited resource is the farming labor force, meaning that land, water, and all other
resources are plentiful in both countries.
Each farmer in France can produce 10 tons of grain or 5 tons of dates in a season.
Each farmer in Niger can also produce 10 tons of grain or 25 tons of dates. Please
answer the four questions.
a. Which country has the absolute advantage in producing dates
- Niger
- France
- Neither
b. Which country has the absolute advantage in producing grain?
- France
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,- Niger
- Neither
c. Which country has the comparative advantage in producing dates?
- France
- Niger
- Neither
d. Which country has the comparative advantage in producing grain?
- Niger
- Neither
- France - Correct answer-a. Niger
b. Neither
c. Niger
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,d. France
Suppose that Ned can produce either potato chips or computer chips. If he only
produces potato chips he can produce 12 in a day. If he only produces computer
chips, he can produce 16 in a day. Drag the endpoints of the line to plot his
production possibilities frontier (PPF) on the graph.
What is the opportunity cost of potato chip production in terms of computer chips?
- 1/2
-2
- 12
- 3/4
- 16
- 4/3 - Correct answer-- 4/3
Suppose that Ned can produce either potato chips or computer chips. If he only
produces potato chips he can produce 16 bags in a day. If he only produces
computer chips, he can produce 12 in a day. Drag the endpoints of the line to plot
his production possibilities frontier (PPF) on the graph.
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, What is the opportunity cost of computer chip production in terms of potato chips?
- 16
- 3/4
- 1/2
-2
- 12
- 4/3 - Correct answer-4/3
Suppose that Ned can produce either potato chips or computer chips. If he only
produces potato chips he can produce 25 in a day. If he only produces computer
chips, he can produce 50 in a day. Drag the endpoints of the line to plot his
production possibilities frontier (PPF) on the graph.
What is the opportunity cost of computer chip production in terms of potato chips?
- 4/3
-2
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Answers
Assume France and Niger can both produce grain and dates, and that the only
limited resource is the farming labor force, meaning that land, water, and all other
resources are plentiful in both countries.
Each farmer in France can produce 10 tons of grain or 5 tons of dates in a season.
Each farmer in Niger can also produce 10 tons of grain or 25 tons of dates. Please
answer the four questions.
a. Which country has the absolute advantage in producing dates
- Niger
- France
- Neither
b. Which country has the absolute advantage in producing grain?
- France
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,- Niger
- Neither
c. Which country has the comparative advantage in producing dates?
- France
- Niger
- Neither
d. Which country has the comparative advantage in producing grain?
- Niger
- Neither
- France - Correct answer-a. Niger
b. Neither
c. Niger
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,d. France
Suppose that Ned can produce either potato chips or computer chips. If he only
produces potato chips he can produce 12 in a day. If he only produces computer
chips, he can produce 16 in a day. Drag the endpoints of the line to plot his
production possibilities frontier (PPF) on the graph.
What is the opportunity cost of potato chip production in terms of computer chips?
- 1/2
-2
- 12
- 3/4
- 16
- 4/3 - Correct answer-- 4/3
Suppose that Ned can produce either potato chips or computer chips. If he only
produces potato chips he can produce 16 bags in a day. If he only produces
computer chips, he can produce 12 in a day. Drag the endpoints of the line to plot
his production possibilities frontier (PPF) on the graph.
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, What is the opportunity cost of computer chip production in terms of potato chips?
- 16
- 3/4
- 1/2
-2
- 12
- 4/3 - Correct answer-4/3
Suppose that Ned can produce either potato chips or computer chips. If he only
produces potato chips he can produce 25 in a day. If he only produces computer
chips, he can produce 50 in a day. Drag the endpoints of the line to plot his
production possibilities frontier (PPF) on the graph.
What is the opportunity cost of computer chip production in terms of potato chips?
- 4/3
-2
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