Podcast
Questions and Answers
True or false: Frank specializes in growing potatoes.
True or false: Frank specializes in growing potatoes.
True
True or false: Ruby specializes in raising cattle.
True or false: Ruby specializes in raising cattle.
True
True or false: Trade allows Frank and Ruby to consume more meat and more potatoes.
True or false: Trade allows Frank and Ruby to consume more meat and more potatoes.
True
True or false: Frank has an absolute advantage in producing meat.
True or false: Frank has an absolute advantage in producing meat.
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True or false: Ruby needs less time than Frank to produce 1 oz of potatoes.
True or false: Ruby needs less time than Frank to produce 1 oz of potatoes.
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True or false: Frank needs 20 minutes to produce 1 oz of meat.
True or false: Frank needs 20 minutes to produce 1 oz of meat.
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True or false: Frank and Ruby each work 8 hours per day.
True or false: Frank and Ruby each work 8 hours per day.
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True or false: In the parable for the modern economy, there are only two goods: meat and potatoes?
True or false: In the parable for the modern economy, there are only two goods: meat and potatoes?
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True or false: The parable for the modern economy involves two people: Ruby and Frank?
True or false: The parable for the modern economy involves two people: Ruby and Frank?
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True or false: Both Ruby and Frank would like to eat both meat and potatoes?
True or false: Both Ruby and Frank would like to eat both meat and potatoes?
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True or false: If Ruby produces only meat and Frank produces only potatoes, both gain from trade?
True or false: If Ruby produces only meat and Frank produces only potatoes, both gain from trade?
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True or false: If both Ruby and Frank produce both meat and potatoes, both gain from specialization and trade?
True or false: If both Ruby and Frank produce both meat and potatoes, both gain from specialization and trade?
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True or false: The production possibilities frontier represents various mixes of output that an economy can produce?
True or false: The production possibilities frontier represents various mixes of output that an economy can produce?
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True or false: The production possibilities frontier can be represented graphically as a curve?
True or false: The production possibilities frontier can be represented graphically as a curve?
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True or false: Comparative advantage measures the trade-off between the two goods that each producer faces?
True or false: Comparative advantage measures the trade-off between the two goods that each producer faces?
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True or false: Comparative advantage reflects the relative opportunity cost?
True or false: Comparative advantage reflects the relative opportunity cost?
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True or false: Each good should be produced by the individual that has the larger opportunity cost of producing that good?
True or false: Each good should be produced by the individual that has the larger opportunity cost of producing that good?
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True or false: One person can have comparative advantage in both goods?
True or false: One person can have comparative advantage in both goods?
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True or false: The opportunity cost of one good is the inverse of the opportunity cost of the other?
True or false: The opportunity cost of one good is the inverse of the opportunity cost of the other?
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True or false: Trade can benefit everyone in society by allowing people to specialize in activities in which they have a comparative advantage?
True or false: Trade can benefit everyone in society by allowing people to specialize in activities in which they have a comparative advantage?
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True or false: The availability of capital and labor in a country is the only factor that determines its comparative advantage?
True or false: The availability of capital and labor in a country is the only factor that determines its comparative advantage?
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Trade with China makes most Americans better off because they can buy goods that are made or assembled more cheaply in China.
Trade with China makes most Americans better off because they can buy goods that are made or assembled more cheaply in China.
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Trade between China and the United States benefits both countries economically.
Trade between China and the United States benefits both countries economically.
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The United States has a trade surplus with China.
The United States has a trade surplus with China.
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Chinese goods are generally more expensive than goods made in the United States.
Chinese goods are generally more expensive than goods made in the United States.
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Trade with China has no impact on the standard of living for most Americans.
Trade with China has no impact on the standard of living for most Americans.
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Trade between China and the United States has increased over the years.
Trade between China and the United States has increased over the years.
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American consumers have a wide variety of choices when it comes to buying goods from China.
American consumers have a wide variety of choices when it comes to buying goods from China.
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Trade with China has led to job losses in the United States.
Trade with China has led to job losses in the United States.
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Trade between China and the United States is beneficial for both countries' manufacturing sectors.
Trade between China and the United States is beneficial for both countries' manufacturing sectors.
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