Assume That England and Spain Can Switch Between Producing Cheese and Producing Bread

ECON2103 - Practice Questions (1st Midterm)

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ndicate the answer option that best completes the statement or answers the question.

Table three-12

Barb and Jim run a business organization that sets up and tests computers. Assume that Affront and Jim tin can switch between setting up

and testing computers at a abiding rate. The following table applies.

Minutes Needed to Number of Computers Set Up or Tested in a forty-Hour Week

Prepare one Computer Test ane Computer Computers Prepare Reckoners Tested

Affront 48 ? fifty forty

Jim 30 forty lxxx sixty

1. Refer to Table 3-12 . Which of the following points would not exist on Jim's product possibilities frontier, based on a

xl-hour week?

a. (0 computers set, 60 computers tested)

b. (40 computers set upward, 30 computers tested)

c. (60 computers prepare, 12 computers tested)

d. (72 computers fix up, 6 computers examed)

2. A worker in Vietnam can earn $6 per day making cotton cloth on a hand loom. A worker in the United States tin earn

$85 per day making cotton fiber cloth with a mechanical loom. What is the likely explanation for the difference in wages?

a. U.S. cloth workers belong to a matrimony, whereas Vietnamese textile workers do not vest to a union.

b. There is little demand for cotton cloth in Vietnam and great need in the U.South.

c. Labor is more productive making cotton cloth with a mechanical loom than with a hand loom.

d. Vietnam hasouth a low-wage policy to make its textile indusattempt more competitive in world yardarkets.

Effigy 3-19

Republic of chile's Production Possibilities Frontier Colombia'due south Product Possibilities Borderland

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Source: https://www.studocu.com/hk/document/%E9%A6%99%E6%B8%AF%E7%A7%91%E6%8A%80%E5%A4%A7%E5%AD%B8/principles-of-microeconomics/midterm-2016-questions/5713979