What does it mean for a nation to have an absolute advantage in the production of a good Mcq?

Inhaltsverzeichnis Show

What does it mean for a country to have absolute advantage in production of a good?
What does it mean for a nation to have an absolute advantage in the production of a good quizlet?
What does it mean for a country to have an absolute advantage Compare that to having a comparative advantage?

Directions
This quiz contains 15 multiple choice questions. Select the correct answer by clicking on the appropriate button. After you have finished the quiz, click on the Grade my Quiz button at the bottom of the page. Your score is neither recorded nor transmitted to your instructor.

Each time you take this quiz you must click on the RELOAD or REFRESH button on your browser to ensure that your test is scored correctly.

1. During the time when she took this quiz, Susannah could instead have practiced her violin or done her French homework. She thinks that if she hadn't taken the quiz, she would have done her French homework. Her opportunity cost of taking the quiz is the value of

(a) practicing her violin
(b) doing her French homework
(c) practicing her violin and doing her French homework
(d) the time it took to do the quiz

2. Suppose that there are only two countries, Atlantis and Mu, and two goods, snorkels and submarines. If Atlantis has a comparative advantage in snorkels, then

(a) Atlantis has an absolute advantage in snorkels.
(b) Mu has an absolute advantage in snorkels.
(c) Mu has a comparative advantage in submarines.
(d) Mu has an absolute advantage in submarines.

3. Which of the following statements concerning opportunity cost and the pattern of international trade is correct?

(a) Absolute advantage implies comparative advantage.
(b) Raritania has a comparative advantage over Hudsonia in the production of brickbats if it can produce a brickbat with fewer of all inputs.
(c) When opportunity costs are the same in Raritania as in Hudsonia for all commodities, no mutual gains from specialization and trade are possible between the two countries.
(d) If Raritania is more productive than Hudsonia in producing all goods and services, then there are no possible mutual gains from trade between the two countries.

4. Suppose that one day's labor in Chile and Argentina has productivities in making beef and wine given in the table at right. Then we can conclude that

	Beef	Wine
Chile	4	12
Argentina	2	5

(a) Chile has a comparative advantage in beef production.
(b) Argentina has an absolute advantage in wine production.
(c) Argentina has an absolute advantage in beef production.
(d) Argentina has a comparative advantage in beef production.

5. Suppose that labor productivity in Chile and Argentina in making beef and wine is described by the table in the previous question. Assume also that each country is initially producing some of each good. Then we can conclude that

(a) Both Chile and Argentina can gain from trade if Chile exports beef and Argentina exports wine.
(b) Both Chile and Argentina can gain from trade if Argentina exports beef and Chile exports wine.
(c) Neither Chile and Argentina can gain from trade.
(d) Chile can gain from trade but Argentina cannot gain from trade.

6. By engaging in international trade, nations can, in effect,

(a) consume at any point on their production possibility curves.
(b) consume inside their production possibility curves.
(c) consume outside their production possibility curves.
(d) shift their production possibility curves outward.

7. If my opportunity cost of typing one term-paper page is baking three dozen cookies and your opportunity cost of typing one term-paper page is baking four dozen cookies, then

(a) you have a comparative advantage in cookie-baking.
(b) I have a comparative advantage in cookie-baking.
(c) you have an absolute advantage in cookie-baking.
(d) I have an absolute advantage in cookie-baking.

8. Production possibility curves are concave (bowed outward) because

(a) opportunity costs are always positive.
(b) resources are not equally well suited to the production of all goods and services.
(c) the problem of scarcity is ever-present.
(d) producing more of one good always entails producing less of another.

9. Dystopia has 120 workers. Each worker can produce 6 horseshoes or 3 hand grenades per day. Dystopia's production possibility curve is:

10. In the previous question, Dystopia's production possibility curve is a straight line because in this instance

(a) there are only two goods in the model.
(b) resources are limited and Dystopia thus faces tradeoffs.
(c) all workers are equally productive in producing the two goods.
(d) this model is only an approximation, and closeness only counts in horseshoes and hand grenades.

11. To move to a point like C, this economy should

(a) raise wages.
(b) reduce inefficiency.
(c) encourage emigration by its citizens.
(d) engage in research and development.

12. In the diagram at right, the production possibility curve exhibiting increasing marginal opportunity cost at all points is

13. When we move from C to B along the production possibility curve illustrated at right, the opportunity cost of spittoons in terms of bassoons is:

(a) 35/68
(b) 54/50
(c) 14/15
(d) 15/14

14. When we move along the production possibility curve in the previous question from D to E, the opportunity cost of bassoons in terms of spittoons is

(a) 35/65
(b) 65/35
(c) 2/7
(d) 7/2

(a) Glamis has a comparative advantage in madeleines.
(b) Cawdor has a comparative advantage in madeleines.
(c) Glamis has an absolute advantage in madeleines.
(d) Cawdor has an absolute advantage in madeleines.

What does it mean for a country to have absolute advantage in production of a good?

absolute advantage, economic concept that is used to refer to a party's superior production capability. Specifically, it refers to the ability to produce a certain good or service at lower cost (i.e., more efficiently) than another party.

What does it mean for a nation to have an absolute advantage in the production of a good quizlet?

if a nation has an absolute advantage in the production of a good, it can produce that good using fewer resources than its trading partner. If a nation has a comparative advantage in the production of a good, it can produce that good at a lower opportunity cost than its trading partner.

What does it mean for a country to have an absolute advantage Compare that to having a comparative advantage?

Comparative advantage is contrasted with absolute advantage. Absolute advantage refers to the ability to produce more or better goods and services than somebody else. Comparative advantage refers to the ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume or quality.

What does it mean for a nation to have an absolute advantage in the production of a good Mcq?

What does it mean for a country to have absolute advantage in production of a good?

What does it mean for a nation to have an absolute advantage in the production of a good quizlet?

What does it mean for a country to have an absolute advantage Compare that to having a comparative advantage?

zusammenhängende Posts

What does it mean for a nation to have an absolute advantage in the production of a good?

When one nation can produce a good or service at a lower cost than another the former is said to have an in that item?

Which clause of the U.S. Constitution is the most important to the democracy of this nation?

Which two european nations arose as newly unified nation-states in the late nineteenth century?

Which of the following best describes a reason that a president might choose to make an executive agreement with a foreign nation rather than a treaty?

Which of the following is an example of an advanced factor as proposed by Porter that a nation will possess?

NEUESTEN NACHRICHTEN

What is business ethics How should companies act so that their Behaviour is considered ethical?

Wer sagte Träume nicht dein Leben sondern lebe deinen Traum?

Wie stehts bei der Frauen WM?

Wenn das böse gut wird

Wie spricht man den Namen Mila aus?

Ist man versichert wenn man krankgeschrieben ist und trotzdem arbeiten geht?

Which of the following is not a benefit of cloud computing to organizations?

Which of the following do not use a central processing unit for computation?

Wie fallen Air Force 1 Shadow aus

What does your textbook say about eye contact for public speakers in the US?

Populer

Um

Legal

Hilfe

Sozial