Econ 001 - Principles of Economics » Fall 2021 » Quiz on Lesson 5

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Question #1
Canada can make 8 wood tables or 160 wood chairs a day, while USA can make 12 wood tables of 144 wood chairs a day. Which country has a "comparative advantage" in production of tables?
A.   Canada
B.   USA
Question #2
Mexico USA Coolers 300 800 Scooters 60 100 Use the table above: Which country has a "comparative advantage" (lower opportunity cost) in the production of Scooters?
A.   USA
B.   Mexico
Question #3
China USA Cat toys 150 220 Office chairs 3 10 Use the table above: Which of the following 'Prices' for 1 Office chair, in terms of Cat toys traded, will make both countries better off?
A.   7 Cat toys, 20 Cat toys
B.   60 Cat toys, 170 Cat toys
C.   30 Cat Toys, 45 Cat Toys
D.   170 Cat toys
E.   20 Cat toys, 30 Cat toys
Question #4
Countries with different "opportunity costs" can specialization and trade, and this allows them to consume outside their own production possibilities curves. :)
A.   TRUE
B.   FALSE
Question #5
Abby can make 36 donuts or 4 carrot cakes an hour. Her 'opportunity cost' of making 1 carrot cake is
A.   1/9 donut
B.   20 Cat toys
C.   32 donuts
D.   9 donuts
E.   36 donuts
F.   6 donuts
Question #6
Mexico USA Coolers 300 800 Scooters 60 100 Use the table above: Which of the following 'Prices' for 1 Scooter, in terms of coolers traded, will make both countries better off?
A.   6 Coolers, 7 Coolers
B.   4 Coolers, 10 Coolers
C.   500 Coolers, 10 Coolers
D.   7 Coolers, 10 Coolers
Question #7
Italy China Smart speakers 20 50 Coffee mugs 40 200 Use the table above. Which of the following 'Prices' for 1 Smart speaker, in terms of Coffee mugs traded, will make BOTH countries better off?
A.   35 Coffee mugs
B.   3 Coffee mugs
C.   1 Coffee mugs
D.   All of these are correct.
Question #8
China USA Cat toys 150 220 Office chairs 3 10 Use the table above: China's opportunity cost of producing 1 Office chair is 50 Cat toys.
A.   TRUE
B.   FALSE
Question #9
Canada can make 8 wood tables or 160 wood chairs a day, while USA can make 12 wood tables of 144 wood chairs a day. Which of the following 'prices' for 1 Table, in terms of Chairs traded, will mutually benefit BOTH Countries?
A.   150 chairs
B.   None of these responses is correct.
C.   5 chairs
D.   30 chairs
E.   10 chairs

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