Homework answers / question archive / University of Illinois, Urbana Champaign - ECON 102  ECON 102 CA1/CA2 FA17 P Production and Trade ® HSQ 1 Started on Wednesday, October 18, 2017, 4:44 PM State Finished Completed on Wednesday, October 18, 2017, 5:04 PM Time taken 19 mins 17 secs   Question 1 Say you have two assignments due tomorrow: a MATH assignment, and an ECON Correct assignment

University of Illinois, Urbana Champaign - ECON 102  ECON 102 CA1/CA2 FA17 P Production and Trade ® HSQ 1 Started on Wednesday, October 18, 2017, 4:44 PM State Finished Completed on Wednesday, October 18, 2017, 5:04 PM Time taken 19 mins 17 secs   Question 1 Say you have two assignments due tomorrow: a MATH assignment, and an ECON Correct assignment

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University of Illinois, Urbana Champaign - ECON 102

 ECON 102 CA1/CA2 FA17 P Production and Trade ® HSQ 1

Started on Wednesday, October 18, 2017, 4:44 PM

State Finished

Completed on Wednesday, October 18, 2017, 5:04 PM

Time taken 19 mins 17 secs

 

Question 1 Say you have two assignments due tomorrow: a MATH assignment, and an ECON

Correct assignment. If took an average of 13 minutes to answer an ECON problem, and 18

. minutes to answer a MATH problem. If you had limited time left to study, and wanted to

Select one:

a. only ECON problems

b. We need more information to answer

c. a combination of both ECON and MATH

d. only MATH problems

Question 2 You have $2 to spend on a drink from the vending machine. A bottle of water costs $2 and

Correct the bottle of orange juice will also cost you $2. If you chose the bottle of water, the

opportunity cost of buying the bottle of water is:

Select one:

a. $2 plus the enjoyment you would have received from the bottle of orange juice.

b. nothing.

c. $2.

d. the enjoyment you would have received from the bottle of orange juice.

Question 3 Suppose are studying for your ECON exam, which takes place tomorrow. After four hours

Correct of study, you realized you had been studying all the wrong material. What you studied is

not going to be in the exam! Given this discovery, which of the following you should

 

Select one:

a. the movie you missed because you had to study for the exam

b. All of the other choices are correct

c. how much weight the exam has towards your final grade in the course

d. the hours you already spent studying the wrong material

Question 4 You are deciding whether to stay home to do your laundry rather than

Correct work at your job and make $60. If you are willing to pay $80 to have

Select one:

$60

$80

$140

$20

Question 9 Lisa was choosing between three alternatives: working on her job that pays her

Correct $60; writing a term paper which she values at $40; or going out with a friend, which she

1.00 points out of values at $80. The opportunity cost of going out with her friend is:

1.00

Select one:

$60

$20

$100

$20

Question 6 Economists will call the following an inefficient allocation of

Select one:

None of these situations is inefficient

many people waiting to vote

All of these situations are inefficient

high level of unemployment

a long line at the airport security checkpoint

Question

For your last birthday, your girlfriend bought you a ticket to see your

Correct favorite band, The Economists, for which she paid $100. If you sold

1,00 points out of the ticket the most anyone would pay you would be $80. The

1.00 opportunity cost to you of attending the concert is:

Select one:

$0

$80

$100

$20

Question 8 Say you have two assignments due tomorrow: a CHEM assignment,

Correct and an CS assignment. If took an average of 20 minutes to answer a

1.00 points out of CHEM problem, and 10 minutes to answer a CS problem. If you had

+00 limited time left to study, and wanted to solve the most problems

regardless of the class, your best strategy would be to solve:

Select one:

only CS problems

a combination of both CHEM and CS

We need more information to answer

only CHEM problems

Question 9 You are deciding whether to stay home to do your laundry rather than

Correct work at your job and make $80. If you are willing to pay $120 to have

1.00 points out of someone else do your laundry, what would be the opportunity cost of a

+00 third option: going out drinking with your friends?

Select one:

None of the other choices is correct

$40

$120

$80

$200

Question 10 Four survivors are stuck on an island. Each can either fish or gather berries. The

Incorrect following table shows what each survivor can produce in a day

Jean Joe Jerry Jack

Fish 4 3 2 1

(Ibs)

Berries 1 2 3 4

(Ibs)

When the survivors produce 1 lbs of berries at the smallest possible cost, the opportunity

cost for one pound of berries is pounds of fish.

Select one:

2/3

4 &

1.5

1/4

Question 11 In one hour, the United States can produce 25 tons of steel or 250

Correct automobiles. In one hour, Japan can produce 30 tons of steel or 275

+00 voi automobiles. This information implies that:

Select one:

Japan has a comparative advantage in the production of automobiles.

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

the United States has a comparative advantage in the production of steel.

Japan has a comparative advantage in the production of steel.

Question 12 Suppose a country's PPF is depicted by curve C, but the country is

Correct producing X and Y at a point over curve A. What is happening?

Select one:

We need more information to answer this question

The country does not need as much amount of goods X and/or Y as it could

produce

The economy is shrinking

Some resources are wasted/ not being used

Question 13 Suppose that you are registered in two classes: math and economics, which take up all of

Correct your time. If you decide to study longer hours for economics, then the opportunity cost of

one more hour of economics cramming because ,

Select one:

Increases, because you spend more time on econ when resources better suited to

studying for math

Decreases, because you spend more time on econ when resources better suited to

studying for math

Increases, because you study for econ less efficiently

Decreases, because you study for econ more efficiently

Question 14 The table below show the production possibilities for two countries:

Incorrect Greece and Germany. If these two countries traded based on

0.00 v0} comparative advantage then the following would be a trade beneficial

.0O points out of ;

+00 to both regions:

Sweaters Skirts

Germany 1 5

Greece 2 8

Select one:

18 skirts for 4 sweaters

21 skirts for 5 sweaters

45 skirts for 10 sweaters X

50 skirts for 12 sweaters

None of the options benefits both countries

Question 15 The following table shows the hours needed to produce 1 car, and the hours needed to

Correct produce 1 bike for UK and Germany. What is the opportunity cost of producing 2 bikes for

UK (without trade)

Cars Bikes

UK 20hs 5hs

Germany 16hs 2hs

Select one:

None of the other choices is correct

1/4 bikes.

8 bikes

1/2 car

4 cars.

Question 16 All points inside the production possibility frontier represent:

Correct

. Select one:

 

 a. inefficient production points.

b. infeasible production points.

c. efficient production points.

d. economic growth.

Question 17 An economy is said to have a comparative advantage in the production of a good if it can

Correct produce that good:

 

Select one:

a. with a higher opportunity cost than another economy.

b. outside its production possibility frontier.

c. with more resources than another economy.

d. at a lower opportunity cost than another economy.

Question 18

 A production possibility frontier that is a straight line sloping down from left to

Incorrect right would suggest that:

Select one:

 

a. the two products must have the same price.

b. there are no opportunity costs.

c. more of both goods could be produced moving along the frontier.

d. the opportunity costs of the products are constant.

Question 19 Because Casey can type reports faster and more accurately than Ahmet, Casey has

Correct ____sin typing reports.

Select one:

a. a specialization

b. an opportunity cost

Cc. a comparative advantage

d. an absolute advantage

Question 20 Free trade between countries:

Correct

. Select one:

 a. will allow wealthy countries to exploit less developed nations.

b. will allow for greater levels of consumption than without trade.

c. should be based on absolute advantage.

d. will shift the domestic production possibility frontier to the right.

Question 21 Smallville has a linear production possibility frontier in the production of good X and good

Incorrect Y. It can produce 6 of X per hour or 8 of Y per hour. Suppose it has 240 hours of labor and

. divides labor hours equally between good X production and good Y production. What is the

0.00 points out of

+00 maximum amount of good Y it can produce?

Select one:

a.6 of Y

b. 14 0f Y

c. 30 0f Y X

d. 960 Y

 

Question 22 In one hour, the United States can produce 200 tons of steel or 50

Correct automobiles. In one hour, Japan can produce 40 tons of steel or 80

+00 voi automobiles. This information implies that:

Select one:

the United States has a comparative advantage in the production of automobiles.

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

Japan has a comparative advantage in the production of automobiles.

Japan has an absolute advantage in the production of steel.

Question 23 The following table shows the hours needed to produce 1 car, and the hours needed to

Correct produce 1 bike for UK and Germany. What is the opportunity cost of producing 1 car for

UK (without trade)

Cars Bikes

UK Shs 4hs

Germany 4hs 16hs

Select one:

2 bikes

0.5 bikes.

None of the other choices is correct

0.25 bikes

4 bikes.

Question 24 Between the three PPF curves shown below curve A represents:

Select one:

the economy the lowest production possibilities

the economy where producing good X carries the most cost

the most inefficient economy

the most inefficient economy AND also the one with the lowest production

possibilities

Question 25 The table below show the production possibilities for two countries:

Correct Greece and Germany. If these two countries traded based on

+00 vo comparative advantage then the following would be a trade beneficial

.00 points out of .

+00 to both regions:

Sweaters Skirts

Germany 3 6

Greece 4 8

Select one:

None of the other choices is correct THIS ONE IS THE CORRECT ANSWER.

6 skirts for 12 sweaters

35 skirts for 10 sweaters

8 skirts for 4 sweaters

21 skirts for 21 sweaters