MBA 680 FINAL EXAM PREP | 156 COMPLETE QUESTIONS WITH
EXPERT SOLUTIONS | 2026 LATEST UPDATED | GET A+
If country X has higher labor productivity in the production of umbrellas than the rest of the
world, we would say that country X has a(n) _____ in the production of umbrellas. -
(Answer)Absolute advantage
If a country exports the products it can produce at a low opportunity cost and imports the
products it would otherwise produce at a high opportunity cost, we say that such trade is based
on the - (Answer)Theory of comparative advantage
The table below shoes the number of labor hours required to produce one gallon of wine and one
pound of cheese in the US and France. If the US and France engage in free trade with each other,
the international price of cheese will lie between... - (Answer)0.25 Gallon of wine per pound;
two gallons of wine per pound
The table below shows the number of labor hours required to produce one umbrella and one
bushel of corn in the UK and the rest of the world. If the UK and the rest of the world begin to
trade with each other, the international price of umbrellas will lie between... - (Answer)3 bushels
of corn per umbrella and 8 bushels of corn per umbrella
The UK has a comparative advantage in the production of - (Answer)Only corn
,The figure below shoes the production-possibility curves for Canada and the rest of the world.
The opportunity cost of producing a bushel of corn in Canada and the rest of the world are
(BLANK) liters and (BLANK) liters of maple syrup respectively. - (Answer)9/7; 1/2
In a two-country commodity model, if a country has a comparative advantage in the production
of a certain good, it implies that this country... - (Answer)Can produce this good at a lower
opportunity cost than the other country.
Vineland and Moonited Republic produce wine and cheese. The opportunity cost for the
production of a bottle of wine in Vineland is two pounds of cheese, and in the Moonited
Republic is 2.5 pounds of cheese. Based on this information, it can be concluded that -
(Answer)Vineland has a comparative advantage in the production of wine.
What is the opportunity cost of producing a bushel of corn in the UK? - (Answer)1/3 of an
umbrella
Which of the following is true of mercantilism? - (Answer)Mercantilism believed that national
well-being was based on national holdings of gold and silver
, The international price ratio is 0.33 bushels of wheat/bale of cotton as shown by the line RS. I1
and I2 are two of the community indifference curves of Canada. After Canada engages in free
trade, it will... - (Answer)Produce at point S1 and consume at point C1
I1 and I2 are community indifference curves for Canada and the rest of the world. In the absence
of trade, the rest of the world produces (BLANK) bales of cotton and (BLANK) bushels of
wheat. - (Answer)8;10
A country which has a higher ratio of capital to other factors of production than does the rest of
the world is - (Answer)Relatively capital-abundant
Which of the following best explains why increasing marginal costs of production arise? -
(Answer)Different commodities use inputs in different proportions
Country Y has 15 thousand acres of land and 45 thousand laborers, whereas the Rest of the
World has 100 thousand acres of land and 200 thousand laborers. These countries produce a
labor-intensive good A, and a land-intensive good B. Based on the information given here, we
can conclude that - (Answer)Country Y is relatively labor-abundant
Assume further technology and tastes are the same in the US and the rest of the world. This
information indicates that the US - (Answer)is relatively capital-abundant
EXPERT SOLUTIONS | 2026 LATEST UPDATED | GET A+
If country X has higher labor productivity in the production of umbrellas than the rest of the
world, we would say that country X has a(n) _____ in the production of umbrellas. -
(Answer)Absolute advantage
If a country exports the products it can produce at a low opportunity cost and imports the
products it would otherwise produce at a high opportunity cost, we say that such trade is based
on the - (Answer)Theory of comparative advantage
The table below shoes the number of labor hours required to produce one gallon of wine and one
pound of cheese in the US and France. If the US and France engage in free trade with each other,
the international price of cheese will lie between... - (Answer)0.25 Gallon of wine per pound;
two gallons of wine per pound
The table below shows the number of labor hours required to produce one umbrella and one
bushel of corn in the UK and the rest of the world. If the UK and the rest of the world begin to
trade with each other, the international price of umbrellas will lie between... - (Answer)3 bushels
of corn per umbrella and 8 bushels of corn per umbrella
The UK has a comparative advantage in the production of - (Answer)Only corn
,The figure below shoes the production-possibility curves for Canada and the rest of the world.
The opportunity cost of producing a bushel of corn in Canada and the rest of the world are
(BLANK) liters and (BLANK) liters of maple syrup respectively. - (Answer)9/7; 1/2
In a two-country commodity model, if a country has a comparative advantage in the production
of a certain good, it implies that this country... - (Answer)Can produce this good at a lower
opportunity cost than the other country.
Vineland and Moonited Republic produce wine and cheese. The opportunity cost for the
production of a bottle of wine in Vineland is two pounds of cheese, and in the Moonited
Republic is 2.5 pounds of cheese. Based on this information, it can be concluded that -
(Answer)Vineland has a comparative advantage in the production of wine.
What is the opportunity cost of producing a bushel of corn in the UK? - (Answer)1/3 of an
umbrella
Which of the following is true of mercantilism? - (Answer)Mercantilism believed that national
well-being was based on national holdings of gold and silver
, The international price ratio is 0.33 bushels of wheat/bale of cotton as shown by the line RS. I1
and I2 are two of the community indifference curves of Canada. After Canada engages in free
trade, it will... - (Answer)Produce at point S1 and consume at point C1
I1 and I2 are community indifference curves for Canada and the rest of the world. In the absence
of trade, the rest of the world produces (BLANK) bales of cotton and (BLANK) bushels of
wheat. - (Answer)8;10
A country which has a higher ratio of capital to other factors of production than does the rest of
the world is - (Answer)Relatively capital-abundant
Which of the following best explains why increasing marginal costs of production arise? -
(Answer)Different commodities use inputs in different proportions
Country Y has 15 thousand acres of land and 45 thousand laborers, whereas the Rest of the
World has 100 thousand acres of land and 200 thousand laborers. These countries produce a
labor-intensive good A, and a land-intensive good B. Based on the information given here, we
can conclude that - (Answer)Country Y is relatively labor-abundant
Assume further technology and tastes are the same in the US and the rest of the world. This
information indicates that the US - (Answer)is relatively capital-abundant
