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.   60 Cat toys, 170 Cat toys
B.   20 Cat toys, 30 Cat toys
C.   7 Cat toys, 20 Cat toys
D.   30 Cat Toys, 45 Cat Toys
E.   170 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.   9 donuts
B.   36 donuts
C.   6 donuts
D.   1/9 donut
E.   32 donuts
F.   20 Cat toys
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.   500 Coolers, 10 Coolers
C.   7 Coolers, 10 Coolers
D.   4 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.   1 Coffee mugs
B.   3 Coffee mugs
C.   35 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.   None of these responses is correct.
B.   5 chairs
C.   30 chairs
D.   150 chairs
E.   10 chairs

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