Question 1

Tom and Jerry have two tasks to do all day: set traps and build bombs.If Tom spends all day setting traps,he will have set 16 traps.If he instead devotes his day to building bombs,Tom will build 4 bombs.If Jerry spends his day setting traps,he will set 14 traps;if he spends the day building bombs,he will build 7 bombs.If Jerry decides to specialize in building bombs,what are the limits to his terms of trade?

Accepted Answer

A)  Jerry will accept no less than 7 traps for each bomb.
B)  Jerry will accept no less than 2 traps for each bomb.
C)  Jerry will accept no less than 7 bombs for each trap.
D)  Jerry will accept no less than 2 bombs for each trap.

Question 2

Tom and Jerry have two tasks to do all day: set traps and build bombs.If Tom spends all day setting traps,he will have set 16 traps.If he instead devotes his day to building bombs,Tom will build 4 bombs.If Jerry spends his day setting traps,he will set 14 traps;if he spends the day building bombs,he will build 7 bombs.For Tom,the opportunity cost of building a bomb is __________ traps set.

Accepted Answer

A)  16
B)  12
C)  8
D)  4

Question 3

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.The workers in Country B will benefit from trade if they:

Accepted Answer

A)  specialize in bananas because they have a comparative advantage in banana production.
B)  specialize in tomatoes because their opportunity cost of tomatoes is higher than Country A's.
C)  specialize in tomatoes because their opportunity cost of tomatoes is lower than Country A's.
D)  specialize in bananas because they have an absolute advantage in banana production.

Question 4

A country that specializes:

Accepted Answer

A)  spends all of its resources producing a particular good.
B)  spends all of its resources producing those goods it has an absolute advantage in producing.
C)  spends all of its resources producing only what other countries need.
D)  spends all of its resources producing what it can make more of than anyone else.

Exam 2: Specialization and Exchange

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.The workers in Country B will benefit from trade if they:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A country that specializes:

Correct Answer
verified

Exam 2: Specialization and Exchange

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.The workers in Country B will benefit from trade if they:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A country that specializes:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified