Question
Hi! Please provide me the right answers, no need for explanation:) 1.We say that the market is a good mechanism to allocate resources because: a)There
Hi! Please provide me the right answers, no need for explanation:)
1.We say that the market is a good mechanism to allocate resources because:
a)There is no alternative way of allocating resources in a society b)Under certain circumstances, its result is equitable c)It seems to coordinate the decisions of agents in an efficient manner d)It provides greater rewards to people with greater wealth 2.Suppose there are two countries, A and B, of similar size that can use their resources to produce two goods, X and Y. If both A and B employ each all its resources to produce only good X, A produces twice as much as B, whereas if both A and B produce only good Y, A produces three times as much as B. Which of the following statements is correct?
a)Country A has an absolute advantage in the production of both goods, and country B has a comparative advantage in the production of good X. b)Country A has an absolute advantage in the production of both goods, and country B has a comparative advantage in the production of good Y. c)Country A and country B can benefit from trading good X and good Y at an exchange rate of 2.5 units of good X for one unit of good Y d)Country A and country B can benefit from trading good X and good Y at an exchange rate of 1
3.Which of the following may be part of the opportunity cost of studying at the university?
a)Working in the government for a wage b)All the options are correct c)Traveling around the world d)Working at a firm for a wage
4.Suppose an economy in which only two goods are produced: bicycles and motorbikes, and suppose that the only feasible combinations of the two goods are those in the three rows of the next table:
Bicycles | Motorbikes |
12 | 0 |
6 | 1 |
0 | 2 |
What is the opportunity cost of a motorbike?
a)Three bicycles b)Twelve bicycles
c)One bicycle d)Six bicycles
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