ECO 365 Final Exam SET- 2 (2016 Version)/ECO 365 Final Exam SET- 2 (2016 Version)

1. Because you can only obtain more of one good by giving up some of another good, the shape of a production possibility curve is:

upward sloping.

perfectly vertical.

perfectly horizontal.

downward sloping

2. Refer to the table shown. The average product when eight workers are employed is:

_____6____

Number of workers Total Output

1 4

2 10

3 18

4 28

5 35

6 41

7 45

8 48

9 50

10 49

3. A resource is said to have a comparative advantage if:

it is equally suited to the production of all goods.

its suitability to the production of one good changes as it produces more of that good.

its suitability to the production of one good does not change as it produces more of that good.

it is better suited to the production of one good than to the production of an alternative good.