1.

(01.03 HC) Use the table of production possibilities below to answer the question that follows.

	Pecans (tons)	Cranberries (tons)
United States	15	5
Canada	8	4

Which range represents the mutually beneficial terms of trade for the United States and Canada? (5 points)

	Canada offering between 2 and 3 tons of pecans for one ton of cranberries
	Canada offering between 0.33 and 0.5 tons of pecans for one ton of cranberries
	The United States offering between 0.33 and 0.5 tons of cranberries for one ton of pecans
	The United States offering between 0.33 and 0.5 tons of pecans for one ton of cranberries
	The United States offering between 2 and 3 tons of pecans for one ton of cranberries

2.

(01.03 MC) Use the table of production possibilities below to answer the question that follows.

	Pecans (tons)	Cranberries (tons)
United States	15	5
Canada	8	4

What is Canada's OC for producing one ton of cranberries? (5 points)

	0.8 tons of pecans
	0.5 tons of pecans
	1.25 tons of pecans
	2 tons of pecans
	5 tons of pecans

3.

(01.03 MC) Use the table of production possibilities below to answer the question that follows.

	Pecans (tons)	Cranberries (tons)
United States	15	5
Canada	8	4

Which statement about advantage is true? (5 points)

	The United States has an absolute advantage only in pecan production.
	The United States has a comparative advantage in both cranberry and pecan production.
	Canada has a comparative advantage in both cranberry and pecan production.
	Canada has a comparative advantage in cranberry production.
	Canada has an absolute advantage in pecan production.

4.

(01.03 LC) Use the table of production possibilities below to answer the question that follows.

	Pecans (tons)	Cranberries (tons)
United States	15	5
Canada	8	4

Which of the following is true about this data? (5 points)

	The United States has the absolute advantage in producing pecans.
	Canada has the absolute advantage in producing cranberries.
	Canada has the absolute advantage in producing pecans.
	Canada has a lower opportunity cost for the production of pecans.
	Neither country can benefit from specialization and trade.

5.

(01.03 HC) Use the graphs of production possibilities below to answer the question that follows.

Twistia Turnland 100 Bread (Millions of Tons) Bread (Millions of Tons) 50 0 20 0 40 Pies (Millions) Pies (Millions)