microeconomics – chapter 2 (connect)

you've been put in charge of a bake sale for a local charity, and you are planning to sell cookies and cupcakes. a production possibilities graph for this situation would show:
A. the profit you could earn from selling cookies and cupcakes, given the demand for the goods
B. the total cost of baking cookies and cupcakes, given your resources
C. all of the combinations of cookies and cupcakes you could produce with your time and resources
D. the amount of cookies and cupcakes you could sell

you manage two employees at a pet salon. your employees perform two tasks: giving flea baths and grooming animals. one of the employees is more efficient in giving flea baths, and the other employee is more efficient in grooming. if you have constructed a production possibilities frontier for the services offered by both of your employees, you would:
A. not expect it to be a straight line because each worker would likely have similar skills at grooming and giving flea baths, and, therefore, the opportunity cost of performing each task would be the same for both workers
B. expect it to be a straight line because each worker would likely have similar skills at grooming and giving flea baths, and, therefore, the opportunity cost of performing each task would be equal to zero
C. expect it to be a straight line because there are just two employees and production possibilities curves have two axes
D. not expect it to be a straight line because each worker would likely differ in her relative skills at grooming and giving flea baths, and, therefore, the opportunity cost of performing each task would be different for each worker

you've been put in charge of a bake sale for a local charity, and you are planning to sell cookies and cupcakes. suppose another volunteer is going to help you bake. if you have an absolute advantage at baking cookies, it means that:
A. the other volunteer can bake better quality cupcakes than you
B. the other volunteer can bake more cookies with the same amount of resources than you
C. you can produce more cookies with the same amount of resources than the other volunteer
D. you can earn a higher revenue than the other volunteer when you bake cupcakes

could one of you have an absolute advantage at baking both items? (yes / no)

you've been put in charge of a bake sale for a local charity, and you are planning to sell cookies and cupcakes. suppose another volunteer is going to help you bake. if you have a comparative advantage at baking cookies, it means that:
A. the other volunteer can bake cookies of a better quality than you
B. you can bake cupcakes of a better quality than the other volunteer
C. you can give up fewer cupcakes for each cookie you bake
D. the other volunteer can give up fewer cupcakes for each cooke he bakes

could one of you have a comparative advantage at baking both items? (yes / no)

you've been put in charge of a bake sale for a local charity, and you are planning to sell cookies and cupcakes. suppose another volunteer is going to help you bake. suppose you have a comparative advantage at baking cookies and the other volunteer has a comparative advantage at baking cupcakes. in this case, you should bake __________ (cookies / cupcakes) and the other volunteer should bake __________ (cookies / cupcakes). you should split up the baking because:
A. there will be more cookies and cupcakes produced between you than if you each spent half of your time baking each good
B. there will be half as many cookies and cupcakes produced between you than if you each spent half of your time baking each good
C. it will be more fun that way
D. you can monitor each other's activity and progress

you manage two employees at the flower shop. they perform two tasks: caring for the displays of cut flowers and making flower arrangements to fill customer orders. in organizing your employees and assigning them tasks, you should:
A. assign each worker the task in which he has an absolute advantage
B. split the two tasks equally between the two workers so they don't get bored
C. have both workers do some of each task each day so they learn both tasks well
D. assign each worker the task in which he has a comparative advantage

suppose two countries produce the same two goods and have identical production possibilities frontiers. you would expect these countries:
A. not to trade, because identical production possibilities frontiers would indicate that the two countries face the same opportunity costs (so there are no gains from trade)
B. not trade trade, because identical production possibilities frontiers would indicate that the two countries face different opportunity costs (so there are no gains from trade)
C. to trade, because identical production possibilities frontiers would indicate that that two countries face different marginal costs (so there are no gains from trade)
D. to trade, because identical production possibilities frontiers would indicate that the two countries face the same marginal costs (so there are some gains from trade)

brazil is hate largest coffee producer in the world and coffee is one of brazil's major export goods. suppose in 20 years, brazil no longer produced a lot of coffee and imported most of its coffee instead. brazil's pattern of trade has changed over time because:
A. people don't drink coffee as much anymore
B. there was no change in its absolute advantage
C. there was a change in its comparative advantage
D. there was no change in its opportunity cost of producing coffee

suppose canada produced two goods: lumber (x) and fish (y). it has 18 million workers, each of whom can cut 10 feet of lumber or catch 20 fish each day. the maximum amount of lumber canada could produce in a day is __________ million feet of lumber. the maximum amount of fish it could produce in a day is __________ million fish. the equation describing the production possibilities frontier is:
A. 5x + 10y = 18
B. 0.05x + 0.10y = 18
C. 10x + 5y = 18
D. 0.10x + 0.05y = 18

using the equation from above, if 60 million feet of lumber are cut, __________ million fish can be caught.

for each point on the PPF, use the table below to indicate whether the point is attainable and efficient, attainable and inefficient, or unattainable.

Paula and Carlo are co-workers. their production possibilities frontiers for counselling clients and writing memos are given. identify which worker has an absolute advantage and comparative advantage in counselling clients.
A. absolute advantage in counselling clients
B. comparative advantage in counselling clients

identify which worker has an absolute advantage and comparative advantage in writing memos
C. absolute advantage in writing memos
D. comparative advantage in writing memos

suppose that the manager of a restaurant has two new employees. rahul and henriette, and is trying to decide which task to assign to whom. rahul can chop 20 kilograms of vegetables or wash 100 dishes per hour. henriette can shop 30 kilograms of vegetables or wash 120 dishes. who should be assigned the task of chopping vegetables? who should be assigned the task of washing dishes?

Suppose two countries, russia and sweden, each produce only paper and cars. russia can produce 8 tonnes of paper or 4 million cars each year. sweden can produce 25 tonnes of paper or 5 million cars each year. suppose the countries specialize. __________ will produce cars.