Homework answers / question archive / University of Illinois, Urbana Champaign - ECON 102  ECON 102 CA1/CA2 FA17 — Production and Trade = Quiz 2: Production and Trade Started on Saturday, September 2, 2017, 10:13 AM State Finished Completed on Saturday, September 2, 2017, 10:21 AM Time taken 7 mins 53 secs Question 1 Economists will call the following an inefficient allocation Correct of resources: Information for TAs: see general feedback for creating new versions

University of Illinois, Urbana Champaign - ECON 102  ECON 102 CA1/CA2 FA17 — Production and Trade = Quiz 2: Production and Trade Started on Saturday, September 2, 2017, 10:13 AM State Finished Completed on Saturday, September 2, 2017, 10:21 AM Time taken 7 mins 53 secs Question 1 Economists will call the following an inefficient allocation Correct of resources: Information for TAs: see general feedback for creating new versions

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University of Illinois, Urbana Champaign - ECON 102

 ECON 102 CA1/CA2 FA17 — Production and Trade =

Quiz 2: Production and Trade

Started on Saturday, September 2, 2017, 10:13 AM

State Finished

Completed on Saturday, September 2, 2017, 10:21 AM

Time taken 7 mins 53 secs

Question 1 Economists will call the following an inefficient allocation

Correct of resources:

Information for TAs: see general feedback for creating new

versions.

Select one:

high level of unemployment

None of these situations is inefficient

All of these situations are inefficient

many people waiting to vote

a long line at the airport security checkpoint

Question 2 Four survivors are stuck on an island. Each can either fish or gather

Correct berries. The following table shows what each survivor can produce in a

day

 

pf tm [me | ae |

Fish 4 3 2 1

(Ibs)

Berries 1 2 3 4

(Ibs)

When the survivors produce 6 lbs of berries at the smallest possible cost,

the opportunity cost for one pound of berries is pounds of fish.

Select one:

1/4

1.5

4

2/3

 

Question 3 In one hour, the United States can produce 25 tons of

Correct steel or 250 automobiles. In one hour, Japan can produce

1,00 points out 30 tons of steel or 275 automobiles. This information

of 1.00 implies that:

Information for TAs: see general feedback for creating new

versions.

Select one:

the United States has a comparative advantage in the production of

steel.

Japan has a comparative advantage in the production of

automobiles.

Japan has a comparative advantage in the production of steel.

Japan has a comparative advantage in the production of both goods.

Question 4 If a country's PPF moves from A to C, which of the

Correct following is happening?

Select one:

Improved efficiency in producing good Y

Improved efficiency in producing good X

Production possibility is shrinking

We cannot tell from the choices given

 

Question 5 Suppose an economy where resources are fully employed. As the economy

Correct increases production of “restaurant meals” , the opportunity cost of

producing more restaurant meals because

Select one:

Increases, because the economy produces restaurant meals less

efficiently

Decreases, because the economy produces restaurant meals more

efficiently

Increases, because the economy produces the additional restaurant

meals with resources better suited to producing other goods

Decreases, because the economy produces additional restaurant

meals with resources better suited to producing other goods

Question 6 The table below show the production possibilities for two

Correct countries: Greece and Germany.

Sweaters Skirts

Germany 1 5

Greece 2 8

Select one:

60 skirts for 10 sweaters

36 skirts for 12 sweaters

21 skirts for 6 sweaters

18 skirts for 4 sweaters

Question 7 The following table shows the hours needed to produce 1 car, and the

Correct hours needed to produce 1 bike for UK and Germany. What is the

opportunity cost of producing 1 car for UK (without trade)

Cars Bikes

UK 20hs Shs

Germany 16hs 2hs

Select one:

4 bikes

8 bikes

4 cars.

1/4 bikes.

None of the other choices is correct

Question 8 An economy Is said to have a comparative advantage in the production of

Correct one good if it:

 Select one:

a. has the highest opportunity cost for producing a particular good.

b. can produce less of all goods than another economy.

c. has the lowest opportunity cost for producing a particular good.

d. can produce more of all goods than another economy.

Question 9 [Q#k2001] A production possibility frontier illustrates the in an

Correct economy that produces only goods.

Select one:

a. prices; two

b. shortages; three

c. trade-offs; one

d. trade-offs; two

Question 10 If they spend all night writing computer programs, Laurence can write 10

Correct programs while Carrie Anne can write 5. If they spend all night making

sunglasses, Laurence can make 6 while Carrie Anne can make 4.

Select one:

a. Carrie Anne has an absolute advantage in both programs and

sunglasses.

b. Laurence has an absolute advantage in both programs and

sunglasses.

c. Carrie Anne has an absolute advantage in programs but not in

sunglasses.

d. Laurence has an absolute advantage in programs but not in

sunglasses.