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d d d d d d d d d d




PrinciplesdofdMicroeconomics,d7ed(Frank)d
Chapterd2d ComparativedAdvantage

1) Andindividualdhasdandabsolutedadvantagedindproducingdpizzasdifdthatdindividual:
A) hasdadlowerdopportunitydcostdofdproducingdpizzasdthandanyonedelse.
B) candproducedmoredpizzasdindadgivendamountdofdtimedthandanyonedelse.
C) hasdadhigherdopportunitydcostdofdproducingdpizzasdthandanyonedelse.
D) chargesdthedlowestdpricedfordpizzas.

2) IfdAldhasdandabsolutedadvantagedoverdBethdindpreparingdmeals,dthen:
A) itdtakesdAldmoredtimedtodpreparedadmealdthandBeth.
B) thedproblemdofdscarcitydappliesdtodBethdbutdnotdtodAl.
C) Al'sdopportunitydcostdofdpreparingdadmealdisdlowerdthandisdBeth's.
D) AldcandpreparedmoredmealsdindadgivendtimedperioddthandBeth.

3) IfdLesdcandproducedtwodpairsdofdpantsdperdhourdwhiledEvadcandproducedonedpairdperdhour,dthenditd
mustdbedtruedthat:
A) Lesdhasdadcomparativedadvantagedindproducingdpants.
B) Lesdhasdandabsolutedadvantagedindproducingdpants.
C) Evadhasdadcomparativedadvantagedindproducingdpants.
D) Lesdhasdbothdcomparativedanddabsolutedadvantagedindproducingdpants.

4) Ifdadnationdcandproducedadmoredcomputersdperd yeardthandanydotherdnation,dthatdnationdhasda(n)
d advantagedindthedproductiondofdcomputers.
A) comparative
B) absolute
C) relative
D) natural

5) Ifdyoudhavedadcomparativedadvantagedindadparticulardtask,dthen:
A) youdcompleteditdfasterdthandotherdpeople.
B) youdgivedupdmoredtodaccomplishdthatdtaskdthanddodothers.
C) youdgivedupdlessdtodaccomplishdthatdtaskdthanddodothers.
D) youdhavedspecializeddindthatdtask,dwhiledothersdhavednot.

6) Larrydhasdadcomparativedadvantagedoverdhisdclassmatesdindwritingdtermdpapersdifdhe:
A) candwritedtermdpapersdfasterdthandhisdclassmates.
B) hasdandabsolutedadvantagedindwritingdtermdpapers.
C) alwaysdearnsdandAdondhisdtermdpapers.
D) hasdadlowerdopportunitydcostdofdwritingdtermdpapersdthandhisdclassmates.




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d d d d d d d d d d




7) Ifdadnationdhasdthedlowestdopportunitydcostdofdproducingdadgood,dthatdnationdhasda(n)dd
dindthedproductiondofdthatdgood.

A) comparativedadvantage
B) absolutedadvantage
C) comparativedadvantagedanddandabsolutedadvantage
D) absolutedadvantagedanddpossiblydadcomparativedadvantage

8) Whichdofdthedfollowingdstatementsdisdtrue?
A) Absolutedadvantagedimpliesdcomparativedadvantage.
B) Comparativedadvantageddoesdnotdrequiredabsolutedadvantage.
C) Absolutedadvantagedrequiresdcomparativedadvantage.
D) Comparativedadvantagedrequiresdabsolutedadvantage.

9) IfdJanedcandproduced3dpairsdofdshoesdperdhour,dwhiledBobdcandproduced2,dthen
hasda(n) advantagedindproducingdshoes.
A) Jane;dabsolute
B) Jane;dcomparative
C) Bob;dabsolute
D) Bob;dcomparative

10) Accordingdtodthedaccompanyingdtable,dMarthadhasdthedabsolutedadvantagedindmaking:


TimedtodMakedadPie TimedtodMakedadCake
Martha 60dminutes 80dminutes
Julia 50dminutes 60dminutes


A) pies.
B) neitherdpiesdnordcakes.
C) cakes.
D) bothdpiesdanddcakes.

11) Accordingdtodthedaccompanyingdtable,dJuliadhasdthedabsolutedadvantagedindmaking:


TimedtodMakedadPie TimedtodMakedadCake
Martha 60dminutes 80dminutes
Julia 50dminutes 60dminutes


A) pies.
B) neitherdpiesdnordcakes.
C) cakes.
D) bothdpiesdanddcakes.
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12) Referdtodthedaccompanyingdtable.dMartha'sdopportunitydcostdofdmakingdofdadpiedis:


TimedtodMakedadPie TimedtodMakedadCake
Martha 60dminutes 80dminutes
Julia 50dminutes 60dminutes


A) 3/4dofdadcake.
B) 4/3dofdadcake.
C) 8dcakes.
D) 80dcakes.

13) Referdtodthedaccompanyingdtable.dMartha'sdopportunitydcostdofdmakingdadcakedis:


TimedtodMakedadPie TimedtodMakedadCake
Martha 60dminutes 80dminutes
Julia 50dminutes 60dminutes


A) 3/4dofdadpie.
B) 4/3dofdadpie.
C) 6dpies.
D) 60dpies.

14) Referdtodthedaccompanyingdtable.dJulia'sdopportunitydcostdofdmakingdadpiedis:


TimedtodMakedadPie TimedtodMakedadCake
Martha 60dminutes 80dminutes
Julia 50dminutes 60dminutes


A) 60dcakes.
B) 6dcakes.
C) 6/5dofdadcake.
D) 5/6dofdadcake.




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, DOWNLOAD THE Test Bank for Principles of Microeconomics 7th EditionFrank
d d d d d d d d d d




15) Referdtodthedaccompanyingdtable.dJulia'sdopportunitydcostdofdmakingdadcakedis:


TimedtodMakedadPie TimedtodMakedadCake
Martha 60dminutes 80dminutes
Julia 50dminutes 60dminutes


A) 60dcakes.
B) 6dcakes.
C) 6/5dofdadcake.
D) 5/6dofdadcake.

16) Referdtodthedaccompanyingdtable.
hasdthedcomparativedadvantagedindmakingdpiesdand
thedcomparativedadvantagedindmakingdcakes.


TimedtodMakedadPie TimedtodMakedadCake
Martha 60dminutes 80dminutes
Julia 50dminutes 60dminutes


A) Martha;dMartha
B) Julia;dJulia
C) Martha;dJulia
D) Julia;dMartha

17) Referdtodthedaccompanyingdtable.dBaseddondtheirdcomparativedadvantage,dMarthadshouldds
pecializedindmaking whiledJuliadshoulddspecializedindmaking .


TimedtodMakedadPie TimedtodMakedadCake
Martha 60dminutes 80dminutes
Julia 50dminutes 60dminutes


A) pies;dcakes
B) cakes;dpies
C) neitherdpiesdnordcakes;dbothdpiesdanddcakes
D) bothdpiesdanddcakes;dneitherdpiesdnordcakes




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