Homework 2

Question # 00052873 Posted By: solutionshere Updated on: 03/08/2015 02:45 PM Due on: 03/09/2015
Subject General Questions Topic General General Questions Tutorials:
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Question 6 of 20

2.5 Points

Table 3.2


Refer to Table 3.2. The opportunity cost of producing a unit of corn in the United Kingdom is __________ umbrellas and the opportunity cost of producing a unit of corn in the Rest of the World is __________ umbrellas.

A. 1/8; 1/3

B. 1/3; 1/8

C. 3; 8

D. 8; 3

Question 7 of 20

2.5 Points

Table 3.4


Refer to Table 3.4.Once trade between the United States and France opens, we can anticipate that the international price of wine will be between __________ and __________.

A. 1 pound of cheese; 4 pounds of cheese

B. 0.5 pounds of cheese; 4 pounds of cheese

C. 1 pound of cheese; 2 pounds of cheese

D. 0.5 pounds of cheese; 2 pounds of cheese

Question 8 of 20

2.5 Points

Table 3.4


Refer to Table 3.4. Once trade between the United States and France opens, we can anticipate that the international price of cheese will be between __________ and __________.

A. 1 gallon of wine; 0.5 gallons of wine

B. 2 gallons of wine; 4 gallons of wine

C. 2 gallons of wine; 0.25 gallons of wine

D. 1 gallon of wine; 4 gallons of wine

Question 9 of 20

2.5 Points

Which of the following is NOT true about a nation’s production-possibility curve?

A. The production-possibility curve shows all the amounts of different products that an economy can produce when its resources are fully employed.

B. Points inside the production-possibility curve are feasible, but may represent unemployment of some of the economy’s resources.

C. Points outside the production-possibility curve are not feasible production points given the resources in the economy.

D. The production-possibility curve shows how the country gains from trade.

Question 10 of 20

2.5 Points

Figure 3.1


Refer to Figure 3.1.The opportunity cost of one unit of corn production in Canada is __________ liters of maple syrup and in the Rest of the World is __________ liters of maple syrup.

A. 9/7; 2

B. 7/9; 2

C. 9/7; 1/2

D. 7/9; 1/2

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Tutorials for this Question
  1. Tutorial # 00049931 Posted By: solutionshere Posted on: 03/08/2015 02:47 PM
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    shows all the amounts of different products that an economy ...
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