Pennsylvania State University - ECON 102. Quiz 2. The Quiz score: 9/10.

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ECON 102 Quiz 02 Question 1 1 / 1 pts Mark can produce 50 baseballs in a month and Katie can produce 60 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 ... bats in a month. What is Mark’s opportunity cost of producing 20 bats? 50 baseballs. 8 baseballs. None of these 12.5 baseballs. Correct! 25 baseballs. It would take Mark 1/2 month to produce 20 bats. In that time, Mark could have produced 25 baseballs. Question 2 1 / 1 pts Mark can produce 50 baseballs in a month and Katie can produce 60 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. What is Katie’s opportunity cost of producing 20 bats? 20 baseballs. None of these 2 baseballs. Correct! 40 baseballs. 60 baseballs. It would take Katie 2/3 of a month to produce 20 bats. In that time, Katie could have produced 40 baseballs. Question 3 1 / 1 pts Mark can produce 60 baseballs in a month and Katie can produce 42 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. ______________has the absolute advantage in the production of bats, and _____________ has the comparative advantage in the production of bats. Correct! Mark can produce more bats in a month than Katie can, so Mark has the absolute advantage in the production of bats. Also, Katie’s opportunity cost of producing a given number of bats is lower than Mark’s, so Katie has the comparative advantage in the production of bats. Question 4 1 / 1 pts The negative slope of the Production Possibilities frontier best represents which of the following concepts? Unemployment Economic Growth Inefficiency in Production Correct! Opportunity Cost The fact that the PPC has a negative slope means that if a society wants to produce more of one good, they must produce less of some other good (assuming they are already on the PPC.. Thus, it is costly to produce more of one good. Question 5 1 / 1 pts Consider the following table which shows the yield per acre of cotton and wheat in two countries, USA and Mexico: _____________ has the absolute advantage in the production of wheat, and __________ has the comparative advantage in the production of wheat. YIELD PER ACRE USA Mexico USA; Mexico. Correct! Mexico; Mexico. USA; USA. Mexico; USA. Mexico can produce a given amount of wheat using fewer resources than USA, and Mexico can produce a given amount of wheat at a lower opportunity cost than USA. Question 6 1 / 1 pts Consider the following table which shows the yield per acre of cotton and wheat in two countries, USA and Mexico: In Mexico, the opportunity cost of producing 1 unit of cotton is YIELD PER ACRE USA Mexico Cotton 8 9 Wheat 5 12 8 units of wheat. 12 units of wheat. Correct! 4/3 units of wheat. 3/4 units of wheat. None of these Mexico would have to use 1/9 of an acre of land to produce 1 unit of cotton. Had they chosen to use that land for the production of wheat, they could have produced 4/3 units of wheat. Question 7 0 / 1 pts Assume Oklahoma and South Dakota each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: Suppose the two states decide that they want to produce 150 total units of corn. What is the maximum amount of wheat that they could produce? South Dakota Oklahoma Correct Answer None of these 900 units of wheat You Answered 575 units of wheat 500 units of wheat 300 units of wheat Oklahoma has the comparative advantage in the production of corn, so they should produce the 150 units of corn. This would require 50 acres of land. They could use their other 50 acres of land to produce wheat, which would produce 100 units of wheat. Also, South Dakota could use all of its land to produce wheat, which would yield 500 units of wheat. So the combined total would be 600 units of wheat. Question 8 0 / 1 pts Refer to Figure 1. At point A, the opportunity cost of producing capital goods is _________ it is at point C. the same as You Answered less than There is not enough information to determine this Correct Answer greater than As we move down a production possibilities curve, the opportunity cost of producing the good on the horizontal axis increases, and the opportunity cost of producing the good on the vertical axis decreases. Question 9 1 / 1 pts Refer to Table 2. Suppose the country is producing 30 units of capital goods. What is the opportunity cost of producing an additional 10 units of capital goods? Table 2 Capital Goods Consumer Goods 75 units of consumer goods. None of these Correct! 20 units of consumer goods. 90 units of consumer goods. 55 units of consumer goods. The country would have to reduce its production of consumer goods from 75 to 55. So they would give up 20 units of consumer goods. Question 10 1 / 1 pts Assume Oklahoma and South Dakota each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states: What is the marginal rate of transformation between wheat and corn in Oklahoma? South Dakota Oklahoma Wheat 10 8 Corn 4 2 Correct! None of these Oklahoma gives up 4 units of wheat for every unit of corn it produces, so the MRT is -4. Quiz Score: 9 out of 10 [Show More]

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