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.