ECO3704 QUIZ #1 REVIEW
QUESTIONS WITH VERIFIED
ANSWERS; 100% CORRECT;
GRADE A
_____ wrote the Wealth of Nations. - correct
answer- Adam Smith
An increase in imports of clothing into the United States
from India will benefit the _____ and hurt the -
correct answer- U.S. consumers; U.S. clothing
producers.
Consider a two-country, two-commodity model. The table
below shows the units of Good X and Good Y produced in
Country A and Country B per labor hour. Which of the
following statements is true?
Productivity Country A Country B
Good X 1.00 0.50
, Good Y 0.20 0.70 - correct answer- Country A
has an absolute advantage in the production of Good X.
The table below shows the number of labor hours
required to produce one umbrella and one bushel of corn
in the United Kingdom and the rest of the world. Calculate
the opportunity cost of producing an umbrella in the rest
of the world.
Labor hours to make: In the United Kingdom In the Rest of
the World
1 umbrella 3.00 2.00
1 bushel of corn 1.00 0.25 - correct answer-
Eight bushels of corn
The table below shows the number of labor hours
required to produce one umbrella and one bushel of corn
in the United Kingdom and the rest of the world. If the
United Kingdom and the rest of the world begin to trade
with each other, the international price of umbrellas will
lie between _____ and
QUESTIONS WITH VERIFIED
ANSWERS; 100% CORRECT;
GRADE A
_____ wrote the Wealth of Nations. - correct
answer- Adam Smith
An increase in imports of clothing into the United States
from India will benefit the _____ and hurt the -
correct answer- U.S. consumers; U.S. clothing
producers.
Consider a two-country, two-commodity model. The table
below shows the units of Good X and Good Y produced in
Country A and Country B per labor hour. Which of the
following statements is true?
Productivity Country A Country B
Good X 1.00 0.50
, Good Y 0.20 0.70 - correct answer- Country A
has an absolute advantage in the production of Good X.
The table below shows the number of labor hours
required to produce one umbrella and one bushel of corn
in the United Kingdom and the rest of the world. Calculate
the opportunity cost of producing an umbrella in the rest
of the world.
Labor hours to make: In the United Kingdom In the Rest of
the World
1 umbrella 3.00 2.00
1 bushel of corn 1.00 0.25 - correct answer-
Eight bushels of corn
The table below shows the number of labor hours
required to produce one umbrella and one bushel of corn
in the United Kingdom and the rest of the world. If the
United Kingdom and the rest of the world begin to trade
with each other, the international price of umbrellas will
lie between _____ and
