Penn ECON102 Quiz 2

Question 1

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. What is Mark’s opportunity cost of producing 10 bats?

60 baseballs.

20 baseballs.

45 baseballs.

15 baseballs.

None of these

Question 2

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. What is Katie’s opportunity cost of producing 10 bats?

None of these

14 baseballs.

42 baseballs.

12 baseballs.

126 baseballs.

Question 3

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. ______________has the absolute advantage in the production of bats, and _____________ has the comparative advantage in the production of bats.

Katie; Mark

Mark; Mark

Katie; Katie

Mark; Katie

Question 4

The negative slope of the Production Possibilities frontier best represents which of the following concepts?

Inefficiency in Production

Opportunity Cost

Unemployment

Economic Growth

Question 5

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 cotton, and __________ has the comparative advantage in the production of cotton.

Mexico; USA.

USA; USA.

USA; Mexico.

Mexico; Mexico.

Question 6

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 3 units of cotton is

None of these

5 units of wheat.

6 units of wheat.

10 units of wheat.

3 units of wheat.

Question 7

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 600 total units of wheat. What is the maximum amount of corn that they could produce?

300 units of corn

120 units of corn

150 units of corn

250 units of corn

None of these

Question 8

Refer to Figure 1. Which point would best represent a situation where a country is not using all of its resources?

D

B

A

C

Question 9

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

20 units of consumer goods.

55 units of consumer goods.

90 units of consumer goods.

None of these

75 units of consumer goods.

Question 10

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?

-5/4

-2.5

None of these

-2

-4