Bucks ECON 112 Quiz 3 – The opportunity cost of one unit
Subject: Economics   / General Economics
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ECON112
Quiz #3
Please select the best response to the question posed.
Exhibit 34-1
United States France
Good X Good Y Good X Good Y
60 0 90 0
40 30 60 10
20 60 30 20
0 90 0 30
1. Refer to Exhibit 34-1. The opportunity cost of one unit of Y in the United States is
a. 2/3 X.
b. 0.75X.
c. 2X.
d. 4X.
2. Refer to Exhibit 34-1. The opportunity cost of one unit of Y in France is
a. 1X.
b. 2X.
c. 3X.
d. 4X.
3. Refer to Exhibit 34-1. France is the lower opportunity cost producer of
a. good X.
b. good Y.
c. goods X and Y.
d. neither good X nor good Y.
4. Refer to Exhibit 34-1. The opportunity cost of one unit of X in the United States is
a. 3/4Y.
b. 1/3Y.
c. 10Y.
d. 3/2Y.
5. Refer to Exhibit 34-1. The United States is the lower opportunity cost producer of
a. good Y.
b. both goods.
c. neither good.
d. good X.
6. Refer to Exhibit 34-1. If the United States is to specialize in the production of one of the two goods (and then trade that good to France), which good should it be and why? If France is to specialize in the production of one of the two goods (and then trade that good to the United States), which good should it be and why?
a. Good X for the United States because the United States is the higher opportunity cost producer of good X; good Y for France because France is the higher opportunity cost producer of good Y.
b. Good Y for the United States because the United States is the lower opportunity cost producer of good Y; good X for France because France is the lower opportunity cost producer of good X.
c. Good X for the United States because the United States is the lower opportunity cost producer of good X; good Y for France because France is the lower opportunity cost producer of good Y.
d. Good Y for the United States because the United States is the higher opportunity cost producer of good Y; good X for France because France is the higher opportunity cost producer of good X.
7. Refer to Exhibit 34-1. The opportunity cost of one unit of X in France is
a. 1Y.
b. 1/3Y.
c. 2Y.
d. 60Y.
8. Refer to Exhibit 34-1. Considering the data, which of the following terms of trade would both countries agree to?
a. 1X = 2Y
b. 1X = 3Y
c. 1X = 1Y
d. 1X = 1/2Y
e. all of the above
9. One country has a comparative advantage over another country in the production of a good if it
a. has a curved production possibilities curve and the other country has a linear production possibilities curve.
b. has a linear production possibilities curve and the other country has a curved production possibilities curve.
c. is a lower opportunity cost producer of the good.
d. has lower fixed costs than the other country.
10. The ability to produce a good at a lower opportunity cost than others is called a(n) __________ advantage.
a. complementary
b. comparative
c. natural
d. indigenous
