Alice and Betty’s Production Possibilities in one 8-hour day.

If Alice produces only lemonade, she can produce

a. 200 pitchers per day.b. 300 pitchers per day.c. 400 pitchers per day.d. 450 pitchers per day. 14. Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 chair isa. 1/5 table for Mike and 1/3 table for Sandy.b. 1/5 table for Mike and 3 tables for Sandy.c. 5 tables for Mike and 1/3 table for Sandy.d. 5 tables for Mike and 3 tables for Sandy. 15. For two individuals who engage in the same two productive activities, it is impossible for one of the two individuals toa. have a comparative advantage in both activities.b. have an absolute advantage in both activities.c. be more productive per unit of time in both activities.d. gain from trade with each other. 16. If labor in Mexico is less productive than labor in the United States in all areas of production,a. then neither nation can benefit from trade.b. then Mexico can benefit from trade but the United States cannot.c. then the United States will have a comparative advantage relative to Mexico in the production of all goods.d. then both Mexico and the United States still can benefit from trade. 17.

Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.

The opportunity cost of 1 toaster for Miguel is

a. ½ mixer.b. 2 hours of labor.c. 2 mixers.d. 20 hours of labor. 18.

Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

England should export

a. cheese and import bread.b. bread and import cheese.c. both goods and import neither good.d. neither good and import both goods. 19. The price of sugar that prevails in international markets is called thea. export price of sugar.b. import price of sugar.c. comparative-advantage price of sugar.d. world price of sugar. 20. For any country, if the world price of zinc is higher than the domestic price of zinc without trade, that country shoulda. export zinc, since that country has a comparative advantage in zinc.b. import zinc, since that country has a comparative advantage in zinc.c. neither export nor import zinc, since that country cannot gain from trade.d. neither export nor import zinc, since that country already produces zinc at a low cost compared to other countries. 21. Suppose Haiti has an absolute advantage over other countries in producing oranges, but other countries have a comparative advantage over Haiti in producing oranges. If trade in oranges is allowed, Haitia. will import oranges.b. will export oranges.c. will either export oranges or import oranges, but it is not clear from the given information.d. would have nothing to gain either from exporting or importing oranges. 22. When a country allows trade and becomes an importer of a good,a. everyone in the country benefits.b. the gains of the winners exceed the losses of the losers.c. the losses of the losers exceed the gains of the winners.d. everyone in the country loses. 23.

If this country allows free trade in wagons,

a. consumers will gain more than producers will lose.b. producers will gain more than consumers will lose.c. producers and consumers will both gain equally.d. producers and consumers will both lose equally. 24.

Producer surplus in this market before trade is

a. A.b. A + B.c. B + C + D.d. C. 25.

With trade allowed, this country

a. exports 200 units of the good.b. exports 400 units of the good.c. imports 200 units of the good.d. exports 800 units of the good. 26.

The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price.

The tariff

a. decreases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.b. decreases producer surplus by the area C + D and decreases consumer surplus by the area D + E + F.c. increases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.d. increases producer surplus by the area B + C and decrease consumer surplus by the area D + E + F. 27. The nation of Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing rice, exporting steel, and neither importing nor exporting TVs. We can conclude that producer surplus in Aquilonia is nowa. higher in the steel market, lower in the rice market, and unchanged in the TV market.b. higher in the rice and steel markets, and unchanged in the TV market.c. lower in the rice and TV markets, and higher in the steel market.d. lower in the rice and steel markets, and the same in the TV market. 28. When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,a. consumer surplus increases and total surplus increases in the market for that good.b. consumer surplus increases and total surplus decreases in the market for that good.c. consumer surplus decreases and total surplus increases in the market for that good.d. consumer surplus decreases and total surplus decreases in the market for that good. 29. When a country allows trade and becomes an importer of a good,a. domestic producers become better off, and domestic consumers become worseLASA 2: Training and Intervention Program,Psychology,,

Get a Unique Answer HERE or Order a Similar Paper

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.