SOLVED

11) Refer to Figure 2-7. What is the opportunity cost of producing 1 bolt of cotton in Pakistan? A) 3/8 of a pound of cashews B) 5/8 of a pound of cashews C) 1 3/5 pounds of cashews D) 150 pounds of cashews 12) Refer to Figure 2-7. What is the opportunity cost of producing 1 bolt of cotton in Indonesia? A) 3/8 of a pound of cashews B) 5/8 of a pound of cashews C) 2 2/3 pounds of cashews D) 120 pounds of cashews 13) Refer to Figure 2-7. What is the opportunity cost of producing 1 pound of cashews in Pakistan? A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 1 3/5 bolts of cotton D) 240 bolts of cotton 14) Refer to Figure 2-7. What is the opportunity cost of producing 1 pound of cashews in Indonesia? A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 2 2/3 bolts of cotton D) 320 bolts of cotton 15) Refer to Figure 2-7. Which country has a comparative advantage in the production of cotton? A) Indonesia B) They have equal productive abilities. C) Pakistan D) neither country 16) Refer to Figure 2-7. Which country has a comparative advantage in the production of cashews? A) Indonesia B) They have equal productive abilities. C) Pakistan D) neither country 17) Refer to Figure 2-7. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton? A) Indonesia B) They have the same advantage. C) Pakistan D) cannot be determined 18) Which of the following statements is true? A) Individuals who have never been the best at doing anything cannot have a comparative advantage in producing any product. B) Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product. C) Individuals who have never been the best at doing anything perform all tasks at a higher opportunity cost than others. D) Individuals who have never been the best at doing anything must have an absolute advantage in at least ones task. Â Â Â 19) Refer to Table 2-4. Does either China or South Korea have an absolute advantage and if so, in what product? A) South Korea has an absolute advantage in wheat. B) China has an absolute advantage in wheat. C) South Korea has an absolute advantage in both products. D) China has an absolute advantage in digital cameras. 20) Refer to Table 2-4. What is China’s opportunity cost of producing one digital camera? A) 0.04 pounds of wheat B) 4 pounds of wheat C) 25 pounds of wheat D) 40 pounds of wheat