Podcast
Questions and Answers
According to the text, what are the two goods that are mentioned in the parable for the modern economy?
According to the text, what are the two goods that are mentioned in the parable for the modern economy?
- Bread and cheese
- Meat and potatoes (correct)
- Apples and oranges
- Cars and bicycles
Which of the following best describes the gains from trade in the parable?
Which of the following best describes the gains from trade in the parable?
- Only Ruby gains from trade
- Both Ruby and Frank gain from trade (correct)
- Neither Ruby nor Frank gain from trade
- Only Frank gains from trade
What do both Ruby and Frank gain from in the parable?
What do both Ruby and Frank gain from in the parable?
- Producing both meat and potatoes
- Specialization and trade (correct)
- Producing only meat
- Producing only potatoes
What is a production possibilities frontier?
What is a production possibilities frontier?
In the parable, if Ruby produces only meat and Frank produces only potatoes, what happens?
In the parable, if Ruby produces only meat and Frank produces only potatoes, what happens?
In the parable, if both Ruby and Frank produce both meat and potatoes, what happens?
In the parable, if both Ruby and Frank produce both meat and potatoes, what happens?
According to the text, what is the purpose of the parable for the modern economy?
According to the text, what is the purpose of the parable for the modern economy?
Which of the following best describes the production possibilities frontier (PPF)?
Which of the following best describes the production possibilities frontier (PPF)?
What does the production possibilities frontier (PPF) assume about Frank and Ruby's work hours?
What does the production possibilities frontier (PPF) assume about Frank and Ruby's work hours?
What is the purpose of trade between Frank and Ruby?
What is the purpose of trade between Frank and Ruby?
What is absolute advantage?
What is absolute advantage?
Who has an absolute advantage in producing meat?
Who has an absolute advantage in producing meat?
Who has an absolute advantage in producing potatoes?
Who has an absolute advantage in producing potatoes?
What is the trade ratio between meat and potatoes?
What is the trade ratio between meat and potatoes?
According to the text, what is the principle of comparative advantage?
According to the text, what is the principle of comparative advantage?
According to the text, what is the formula for calculating the opportunity cost of one good?
According to the text, what is the formula for calculating the opportunity cost of one good?
Based on the information provided, which country has a comparative advantage over good X?
Based on the information provided, which country has a comparative advantage over good X?
Based on the information provided, which country has a comparative advantage over good Y?
Based on the information provided, which country has a comparative advantage over good Y?
According to the text, can one person have comparative advantage in both goods?
According to the text, can one person have comparative advantage in both goods?
According to the text, what does the principle of comparative advantage explain?
According to the text, what does the principle of comparative advantage explain?
According to the text, what determines a country's comparative advantage?
According to the text, what determines a country's comparative advantage?
Which of the following is a benefit of trade between China and the United States?
Which of the following is a benefit of trade between China and the United States?
Which statement accurately reflects the author's view on trade between China and the United States?
Which statement accurately reflects the author's view on trade between China and the United States?
What does the author mean by 'they can buy goods that are made or assembled more cheaply in China'?
What does the author mean by 'they can buy goods that are made or assembled more cheaply in China'?
According to the text, why does trade with China benefit most Americans?
According to the text, why does trade with China benefit most Americans?
What is the author's main argument in favor of trade with China?
What is the author's main argument in favor of trade with China?
Which of the following is NOT mentioned as an advantage of trade with China?
Which of the following is NOT mentioned as an advantage of trade with China?
What is the author's view on the impact of trade with China on Americans?
What is the author's view on the impact of trade with China on Americans?
What is the author's main point about trade between China and the United States?
What is the author's main point about trade between China and the United States?
What does the author imply about the affordability of goods made or assembled in China?
What does the author imply about the affordability of goods made or assembled in China?
