1
ECN 306 Week 2 Exam 1 Questions with
Correct Answers | Updated (100% Correct
Answers)
In his simplest argument in favor of free
international trade, Adam Smith linkened
nations to— Answer: households
The units of labor needed to produce one unit
of output is the ____ of labor productivity—
Answer: reciprocal
Suppose that over time the hours of labor needed to produce one
unit (100 bushels) of soybeans falls from 0.33 to 0.2. In this instance,
we can say that labor's productivity increases from ___ to ___ units
of soybeans.— Answer: 3, 5
Suppose it takes 0.25 hours of labor to produce
one ton of steel. As a result, we can measure
labor productivity as ___ tons per labor hour.—
Answer: 4
Adam Smith's promotion of free trade worried
those who wondered about the consequences
for nations that did not possess— Answer: an
absolute advantage
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, 2
Ricardo's contribution to the development of
trade theory was rooted in the concept ____
cost.— Answer: opportunity
Suppose a worker can, in one hour, produce
either 6 widgets or 12 thingamajigs. In this
case, we say that the opportunity cost one
widget is ___ thingamajigs.— Answer: 2
According to the principle of comparative
advantage, a country will export those goods
and services it can produce at a ___ opportunity
cost than other countries.— Answer: lower
According to Ricardo's principle of
comparative advantage, even if a country is
absolutely less productive at producing
everything, it will nevertheless have a
comparative advantage in those goods for
which it is— Answer: least disadvantaged.
Suppose one hour of labor in country ABC can
produce either 4 pounds of cheese or 2 bottles of
wine. For this country the opportunity cost of a
bottle of wine is ___ pounds of cheese and the
© 2025 All rights reserved
ECN 306 Week 2 Exam 1 Questions with
Correct Answers | Updated (100% Correct
Answers)
In his simplest argument in favor of free
international trade, Adam Smith linkened
nations to— Answer: households
The units of labor needed to produce one unit
of output is the ____ of labor productivity—
Answer: reciprocal
Suppose that over time the hours of labor needed to produce one
unit (100 bushels) of soybeans falls from 0.33 to 0.2. In this instance,
we can say that labor's productivity increases from ___ to ___ units
of soybeans.— Answer: 3, 5
Suppose it takes 0.25 hours of labor to produce
one ton of steel. As a result, we can measure
labor productivity as ___ tons per labor hour.—
Answer: 4
Adam Smith's promotion of free trade worried
those who wondered about the consequences
for nations that did not possess— Answer: an
absolute advantage
© 2025 All rights reserved
, 2
Ricardo's contribution to the development of
trade theory was rooted in the concept ____
cost.— Answer: opportunity
Suppose a worker can, in one hour, produce
either 6 widgets or 12 thingamajigs. In this
case, we say that the opportunity cost one
widget is ___ thingamajigs.— Answer: 2
According to the principle of comparative
advantage, a country will export those goods
and services it can produce at a ___ opportunity
cost than other countries.— Answer: lower
According to Ricardo's principle of
comparative advantage, even if a country is
absolutely less productive at producing
everything, it will nevertheless have a
comparative advantage in those goods for
which it is— Answer: least disadvantaged.
Suppose one hour of labor in country ABC can
produce either 4 pounds of cheese or 2 bottles of
wine. For this country the opportunity cost of a
bottle of wine is ___ pounds of cheese and the
© 2025 All rights reserved
