canvas.northseattle.edu Microeconomics Midterm Chapter 2 Flashcards | Qui.. econ

Question

canvas.northseattle.edu Microeconomics Midterm Chapter 2 Flashcards | Qui.. economics assignment canvas exam-Google S O does not explain which products will be imported and exported. Question 6 0.1 pts Which of the following is correct? O Trade rests on the principle of absolute advantage. O Absolute advantage exists when one nation can produce a product at a lower opportunity cost than its trading partners. O The gains from trade come from nations specializing in products in which they have a comparative advantage. O When one person can produce more output than a trading partner, we would say that person has a comparative advantage. O When people specialize by comparative advantage, there is no change in total output available. Question 7 0.1 pts

Explanation / Answer

6.

C.

Gain from trade takes place when nations specialize in production using the concepts of comparative advantage.

7.

D.

Alex is producing more meals than that of Jim and graphical representation depicts that comparative advantage in meal preparation is with Alex.

8.

A

For Alex

Opportunity cost of 3 loads of laundry = 9 units of meals

So, opportunity cost of 1 loads of laundry = 9/3 = 3 units of meals

9.

A.

It will bring outward shift in the PPF. Though, the nature of shift depends upon the type of technology affecting one good or all the goods. Then, the exact shift will become clear.

10.

C

With increase in capital goods production, capacity and resources are built. It will make outward shift in the PPF curve.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.