Perry has an absolute advantage in the production of
neither good and Jordan has an absolute advantage in the production of novels.
novels and Jordan has an absolute advantage in the production of poems.
novels and Jordan has an absolute advantage in the production of neither good.
both goods.
poems and Jordan has an absolute advantage in the production of novels.
Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, which of the following statements is correct?
Huey has an absolute advantage in potatoes only.
Huey has an absolute advantage in both potatoes and tomatoes.
Steve has an absolute advantage in potatoes only.
Steve has a comparative advantage in both potatoes and tomatoes.
Steve has an absolute advantage in both potatoes and tomatoes.
Perry has a comparative advantage in the production of
novels and Jordan has a comparative advantage in the production of poems.
neither good and Jordan has a comparative advantage in the production of novels.
novels and Jordan has a comparative advantage in the production of neither good.
both goods.
poems and Jordan has a comparative advantage in the production of novels.
For country Gamma the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?
Gamma
Beta
Both have the comparative advantage in the production of steel.
Neither country has the comparative advantage in the production of steel.
More information is needed to determine which of the two nations has the comparative advantage.
Being able to make something using fewer resources than other producers require would give you a(n)
monopoly.
comparative advantage.
comparative disadvantage.
monopolistic competition.
absolute advantage.
The law of comparative advantage helps explain
why some products do better than others.
how GSMST students work.
opportunity costs.
how economists work.
why a person talented in many things can get more done by specializing.
In the above figure, Jack's opportunity cost of producing 1 gallon of bottled water is ____ of soda.
1 gallon
6 gallons
2 gallons
1/4 of a gallon
1/2 of a gallon
In the table above, how many jackets must Mary forgo for every dress she makes?
12 jackets.
8 jackets.
3/4 of a jacket.
2/3 of a jacket.
1 and 1/2 jackets.
Using the figure above, if Jack and Jill specialize and gain from trade, then
Jack specializes in the production of soda.
Jack specializes in the production of bottled water.
Jack and Jill produce beyond their PPF.
Jack produces equal amounts of gallons of water and bottled water.
Jack specializes on the production of soda and water.
If Perry and Jordan each spends all their time producing the good in which they have a comparative advantage and trade takes place at a price of 1 novel for 7 poems, then
neither Perry nor Jordan will gain from this trade.
Perry and Jordan will both gain from this trade.
Perry will gain more than Jordan from this trade.
Perry will gain from this trade, but Jordan will not.
Jordan will gain from this trade, but Perry will not.