Question 59 Trevor can shovel a driveway in two hours or he can plow a parking lot in 30 minutes. Paul can shovel a driveway in one hour or he can plow a parking lot in one hour, Given this we know that Not yet answered O a. Trevor has an absolute advantage in shoveling driveways. Points out of 1.00 O b. Trevor has a comparative advantage in shoveling driveways. Flag question O c. Trevor has an absolute advantage in plowing a parking lot. O d. Paul has a comparative advantage in plowing parking lots. Question 60 Which of the following events would cause a production possibilities frontier to shift outward? Not yet answered O a. a technological improvement Points out of 1 00 O b. an increase in the money supply Y Flag question O c. a shift in resources from the production of one good to the production of the other good O d. a change in society's preferences for one good over another Question 61 Which of the following statements is not correct? Not yet answered O a. Trade allows nations to consume outside of their production possibilities curves. Points out of 1.00 O b. Trade has the potential to benefit all nations. F Flag question O c. Trade does not allow for specialization. O d. Comparative advantage is the driving force of specialization. Question 62 Workers in a union at an automobile assembly plant negotiate a higher wage. It is likely that Not yet answered O a. supply of autos will shift to the right. Points out of 1.00 O b. more auto workers will be employed. Flag question O c. quantity supplied of autos will increase. O d. supply of autos will shift to the left. Question 63 When countries trade, it is possible for both countries to benefit. Not yet answered Select one: Points out of O True 1.00 Flag question O Falsetion 55 Suppose the cross-price elasticity of demand between pencils and paper is -1.50. This implies that a 10 percent increase in the price of pencils will cause the quantity of paper purchased to yet wered O a. fall by 15 percent. nts out of O b. fall by 667 percent. lag question O c. rise by 15 percent. O d. rise by 667 percent stion 56 Suppose there is an 18 percent decrease in the price of a good that has a price elasticity of demand of 4. The percent increase in the quantity demanded must be yet wered O a. 72 percent. nts out of O b. 22 percent. lag question O c. 4.5 percent. O d. 0.22 percent. ation 57 The principle of comparative advantage does not provide answers to certain questions, One of those questions is t yet wered O a. Is it absolute advantage or comparative advantage that really matters? nts out of O b. What determines the price at which trade takes place? lag question O c, Is it possible for specialization and trade to benefit more than one party to a trade? O d. Is it possible for specialization and trade to increase total output of traded goods? 58 Title: 4-3 vet Refer to the Figure. If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $8 wered nts out of Price Price 18 Consumer A Consumer B 16 lag question 10 12 14 125 Quantity 16 Quantity O a. 16 units. O b. 0 units. O c. 8 units. O d. 24 units.Question 51 Not yet answered Price Quantity Points out of 1.00 Flag question $20 $16 6 Refer to the Table. Using the midpoint method, the price elasticity of demand when price rises from $12 to $16 is about $12 12 $8 18 $4 24 $0 30 O a. 2.33. O b. 1.50. O c. 0.29. O d. 0.67. Question 52 Suppose Canada and China can both produce cars and airplanes, and Canada has the comparative advantage in the production of airplanes while China has the comparative advantage in the production of cars. Also, suppose China has an absolute advantage in the production of both cars and airplanes. China should Not yet answered O a. import cars from Canada and export airplanes to Canada. Points out of 1.00 O b. export cars to Canada and import airplanes from Canada. Flag question O c. not trade cars or airplanes with Canada. O d. export both cars and airplanes to Canada. Question 53 Suppose Maria and Nikki can produce ballet shoes. If Maria's opportunity cost of producing ballet shoes is higher than Nikki's opportunity cost of producing ballet shoes, then Not yet answered O a. Maria has a comparative advantage in the production of ballet shoes. Points out of 1.00 O b. Maria must have an absolute advantage in the production of ballet shoes. Flag question O c. Nikki has a comparative advantage in the production of ballet shoes. O d. Nikki must have an absolute advantage in the production of ballet shoes.uestion 49 Price lot yet nswered oints out of Supply A Supply B Supply C DO Flag question Refer to the Figure. Which of the following would cause the supply curve to shift from Supply C to Supply A in the market for tables? Quantity O a. a decrease in the price of wood O b. a decrease in the demand for tables O c. an increase in the price of wood O d. a decrease in the price of tables uestion 50 Refer to the Table. Using the midpoint method, at a price of $16, what is the income elasticity of demand when income rises from $1,000 to $2,000? of yet wered Price Quantity Demanded Quantity Demanded Quantity Demanded (Income = $1,000) Income = $2,000) Income = $3,500) oints out of DO $24 8 $20 12 Flag question $16 10 16 $12 13 20 16 24 11 10 28 O a. 1.50 O b. 0.50 O c. 0.00 O d. 1.0047 Refer to the Figure. Which of the following price floors would be binding in this market? Price out of 14 question 12 10 - 10 30 40 50 60 Quantity O a. $6 O b. It is not possible to create a binding price floor in this market. O c. $10 O d. $8 48 Refer to the Figure. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for pickup trucks? out of question O a. a decrease in the price of gas O b. an increase in the price of sport utility vehicles O c. an increase in the price of pickup trucks O d. a change in consumer tastes towards sedans45 Refer to the Figure. Which area represents the increase in consumer surplus when the price falls from P1 to P2? Price out of question Quantity O a. The area represented by triangle WVU O b. The area represented by triangle ZUX O c. The areas represented by (rectangle YXVW plus triangle WVU). O d. The area represented by (rectangle YXVW plus triangle ZYW) 46 Refer to the Figure. Which arrow represents the flow of factors of production? MARKETS FOR out of GOODS AND question MARKETS FOR FACTORS OF PRODUCTION O a. A O b. C O C. B O d. D