ECON 13 Study Guide - Final Guide: Sub-Saharan Africa, Absolute Advantage, Comparative Advantage

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turquoisegnu128

12 Oct 2018

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ECON 13 Full Course Notes

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Is and econ 13 - final exam sample. Suppose each of two countries, say china and the u. s. , can either pursue free trade or engage in trade protection. If both countries were to engage in free trade, they would each see their income grow by billion. If both were to engage in trade protection, they would each grow by billion. If china were to choose free trade and the u. s. trade protection, china would not grow at all and the u. s. would grow by billion. Conversely, if the u. s. were to choose free trade and china trade protection, china would grow by billion and the u. s. would not grow at all. Please use this information in the following four questions. (in answering these questions, you might find helpful to draw the matrix of different outcomes. : which of the following combination of policies maximizes the sum of growths for the.

Related Questions

	Athletic Shoes (pairs)	Music CDs
United States	10,000	20,000
Great Britain	5,000	15,000

(Table: Production Possibilities for the U.S. and Great Britain) The table shows production possibilities for the United States and Great Britain, assuming that both countries could choose to devote all resources to producing either good. Which statement is correct with regard to the information in the table?

a. The U.S. has a comparative advantage in producing music CDs because it can produce more music CDs than anything else.

b. These countries should not engage in trade with one another, because the transportation costs of these goods are too high.

c. To determine which country has a comparative advantage in either good, we would need to know the monetary measure of production costs for both countries.

d. The U.S. has a comparative advantage in producing athletic shoes because it can do so at a lower opportunity cost.

silverminnow289

1. The law of comparative advantage says that:

A. whoever has an absolute advantage in producing a good also has a comparative advantage in producing that good.

B. whoever has a comparative advantage in producing a good also has an absolute advantage in producing that good

C. the individual with the lowest opportunity cost of producing a particular good should produce it

D. comparative advantage exists only when one person has an absolute advantage in the production of two goods

2. A country has an absolute advantage in the production of a good if that country:

A. can produce good using fewer resources than another country would require

B. has the lowest opportunity cost of producing the good, regardless of whether it is produced with the fewest resources

C. has the greatest opportunity cost of producing the good, regardless of whether it is produced with the fewest resources

D. has the lowest opportunity cost of producing the good and can produce it with the fewest resources

3. A production possibilities frontier can shift outward for all of the following reasons except:

A. a larger workforce

B. a decrease in the size of the labor force

C. an increase in the skills of the labor force

D. an improvement in technology

byzantiumshark504

Suppose France can produce 9,000 potatoes or 3,000 lemons per day, and that Italy can produce 3,000 potatoes or 3,000 lemons per day. Which of the following statements in this context is true?

a. Italy has a comparative advantage in producing potatoes.

b. Italy would be willing to trade one lemon for anything greater than one potato.

c. Both countries would be willing to trade at a rate of one lemon for one potato.

d. France has a comparative advantage in producing lemons.

e. France has an absolute advantage in producing lemons

salmonporpoise696

ECON 13 Study Guide - Final Guide: Sub-Saharan Africa, Absolute Advantage, Comparative Advantage

ECON 13 Full Course Notes

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