MULTIPLE CHOICE Choose the one altemative that best completes the statement or answers the question. 87) You have an absolute advantage whenever you A) are better educated than someone else. B) can produce more of something than others with the same resources. )prefer to do one particular activity D) can produce something at a lower opportunity cost than others Table 2-4 Haley Serena Bracelets Necklaces 12 16 Table 2-4 shows the output per week of two jewellers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. 88) Refer to Table 2-4. Which of the following statements is frue? A) Haley has an absolute advantage in making both products B) Serena has an absolute advantage in making both products C) Haley has an absolute advantage in making bracelets and Serena in making necklaces D) Haley has an absolute advantage in making necklaces and Serena in making bracelets 89) Refer to Table 2-4. What is Hakey's opportunity cost of making a bracelet? A) 3/4 of a bracelet B) 3 bracelets C)11/3 necklaces D) 2 necklaces 90) Refer to Table 2-4. What is Haley's opportunity cost of making a necklace? A) 3/4 of a bracelet B) 3 bracelets C)1 1/3 necklaces D) 2 necklaces 91) Refer to Table 2-4. What is Serena's opportunity cost A) 2 necklaces of making a bracelet? B) 1/2 of a bracelet C) 1/2 of a necklace D) 3/4 of a bracelet 92) Refer to Table 2-4. What is Serena's opportunity cost of making a necklace? A) 2 necklaces B) 1/2 of a bracelet C) 1/2 of a necklace D) 3/4 of a bracelet 93) Refer to Table 2-4. Which of the following statements is frue? A) Haley has a comparative advantage in making both products B) Serena has a comparative advantage in making both products. ) Haley has a comparative advantage in making bracelets and Serena in making necklaces. D) Haley has a comparative advantage in making necklaces and Serena in making bracelets. Table 2-5 Fred Bamey Pogo Sticks Unicycles 24 28 14 Table 2-5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles. 94) Refer to Table 2-5. Which of the following statements is true? A) Fred has an absolute advantage in making both products. B) Bamey has an absolute advantage in making both products. ) Bamey has an absolute advantage in making pogo sticks and Fred in making unicydes D) Barney has an absolute advantage in making unicycles and Fred in making pogo sticks. 95) Refer to Table 2-5. What is Fred's opportunity cost of making a pogo stick? A) 1/3 of a unicycle B)3 unicycles C) 6/7 of a pogo stick D) 1/2 of a unicycle 96) Refer to Table 2-5. What is Fred's opportunity cost of making a unicycle? A) 1/3 of a pogo stick B) 3 pogo sticks C) 1/2 of a unicycle D) 13 pogo sticks 97) Refer to Table 2-5. What is Barney's opportunity cost of making a pogo stick? A) 1/2 of a unicycle B) 2 unicycles C)1/3 of a unicycle D) 1.4 pogo sticks 98) Refer to Table 2-5. What is Barney's opportunity A) 1/2 of a pogo stick B) 2 pogo sticks C)1.75 unicycles D) 2.8 pogo sticks cost of making a unicycle? 99) Refer to Table 2-5. Which of the following statements is frue? A) Fred has a comparative advantage in making both products. B) Bamey has a comparative advantage in making both products. ) Bamey has a comparative advantage in making pogo sticks and Fred in making unicycles D) Barney has a comparative advantage in making unicydles and Fred in making pogo sticks. 100) Comparative advantage means the ability to produce a good or service A) at a lower selling price than any other producer B) at a lower opportunity cost than any other producer C) of a higher quality than any other producer D) at a higher profit level than any other producer 154) Which of the following is not a factor of production? A) An acre of farmland B) A drill press in a machine shop C) The manager of the local tyre shop D) $1000 in cash 155) Which of the follow ing is a factor of production? A) An oven in a bakery B) A share of General Motors' stock C)A credit card D)A $500 Treasury bond 156) An example of a factor of production is A) stock issued by Dell B) the computers exported by Dell. C) a computer produced by Dell. D) a worker hired by Dell. 157) If a commercial dairy farm wants to raise funds to purchase feeding troughs, it does so in the A) output market B) product market. C) factor market D) dairy products market. 158) The natural resources used in production are made available in the A) goods and services market. B) product market C) government market D) factor market. 159) When you purchase a new pair of jeans you do so in the A) factor market. B) input market C) product market D) resource market. is called wages 160) The resource income earned by those who supply A) labour B) capital C) natural resources D) entrepreneurship