1. Ekuacantake 1 hour to harvest 5 bushels of mangoes or 2 hours to harvest 3 bushels of oranges. Araba can harvest 5 bushels of mangoes in 2 hours or 4 bushels of oranges in 2 hours. Which of these statements is True?

Araba has a comparative advantage in producing oranges.

Araba has a comparative advantage in producing mangoes.

Ekua has an absolute advantage in producing both goods.

In trade between these two women, Ekua would gain and Araba would lose

1. Which of thefollowing is Notone ofthebasiceconomicquestions?
2. What will beproduced?
3. How much will beproduced?
4. Howwill itbeproduced?
5. Who will getwhat isproduced?

Which ofthefollowing ismostlikelytoshifttheproductionpossibilityfrontieroutward?

A suddendiscoveryofnaturalresources

anincrease in stockprices

a shiftofproductiveresources fromcapitalgoodstoconsumergoods

A general increase in thepublic'sdemand for goods