13. Choose the best answer to the following multiple choice questions. A nation
ID: 1141374 • Letter: 1
Question
13.
Choose the best answer to the following multiple choice questions.
A nation will experience economic growth if it does each of the following things except ______.
A.
develop better technologies for producing goods and services
B.
use more capital resources
C.
improve the quality of labor by education, on-the-job training, and work experience
D.
use all its resources to produce consumption goods
An economy decides to double the number of college graduates this year. The economy will ______.
A.
experience an inward shift of the PPF today because the opportunity cost of an increase in human capital next year is a decrease in physical capital this year
B.
expand its production possibilities next year with no opportunity cost this year and scarcity will remain
C.
experience less consumption this year but increased consumption next year as the economy moves along its PPF
D.
experience economic growth next year because the increase in human capital will shift the PPF outward next year but at a cost of less consumption this year.
14.
If Tom can wax a car in fewer hours than Jerry, then Tom definitely has
A.
an absolute advantage in car waxing.
B.
neither a comparative nor an absolute advantage in car waxing.
C.
both a comparative and an absolute advantage in car waxing.
D.
an undetermined advantage because we do not know how long it takes Tom and Jerry to wash a car.
E.
a comparative advantage in car waxing.
2.
The United States is one of the richest nations in the world,
A.
so does not need to trade with poor nations in order to achieve any gains from trade.
B.
so it must have a comparative advantage in the production of all goods.
C.
so might not have a comparative advantage in producing any goods.
D.
so it must have an absolute advantage in the production of all goods.
E.
but it can still benefit from specialization and trade.
Explanation / Answer
Answer 13.
D.
use all its resources to produce consumption goods
All the other options would lead to economic growth whereas option D will decrease the economic growth .
Question
An economy decides to double the number of college graduates this year. The economy will
D. experience economic growth next year because the increase in human capital will shift the PPFoutward next year but at a cost of less consumption this year.
Rest of the options are not correct to the question asked .Therefore option D is the correct answer
Answer 14.
A. has an absolute advantage in car waxing .
Tom has an absolute advantage as its mention in the question that he takes few hours than Jerry so comparitive advantage cannot be there so option A is the right answer.
Answer 2.
but it can still benefit from specialization and trade
Specialization and trade are the most important components for a country to become to rich. The other option mention in the question do not rely accurately to the question asked .
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