IB Economics Paper 2 - 8 Questions Mark - Review Technique (HL / SL)
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unformatted text preview Econ 105 Questions Tutorial Ch 1 March talented people who are the best in all have a comparative advantage in any True False False talented people who are best at all an absolute advantage in all it is impossible for a person to have comparative advantages in any 2 If producers have the opportunity costs of producing goods, trade will allow them to consume outside their production possibility frontiers True False True When producers specialize in product s with a lower opportunity cost, total production will increase in results of countries have more to consume 3 is a student Angela It takes a full course load and only 5 hours a week to his hobby Angela is artistic and can 2 clay pots per hour or 4 coffee cups per hour assistance of a clearly labeled diagram, draw production possibilities Year froze border pots and cups depending on the amount produced per week 1 Econ 105 issues Tutorial Ch 3 b Angela What is the opportunity cost of making one pot of 10 Angela opportunity cost of pots 1 to 2 cups pot is opportunity cost of Angela to 10 pots of 20 cups c Angela What is the opportunity cost of making 1 cup 10 cups Angela's opportunity cost is to make 1 cup 5 0 cost pots opportunity Angela to 10 cups is 5 pots; d Why is it a straight line potential production frontier rather than bowed out because resources can be moved from the production of goods to the other at a constant rate 4 the only two countries in the world, Alpha and Beta, face the following production possibility frontiers 2 Econ 105 issues Tutorial Ch 3a what is the opportunity cost of popcorn unit in Alpha 5 0 peanut units b what is the cost opportunity of a popcorn unit in the beta 8 0 units peanut c What is the opportunity cost of a unit of peanuts in Alpha 2 popcorn units What is the cost opportunity of a peanut unit Beta January 25 th popcorn units If t he two countries choose not to do business, and each country decides to use 30 of its resources to produce popcorn, and 70 of its resources to produce peanuts The amount of popcorn produced and consumed da ns Alpha 54 The amount of peanuts produced and consumed in the amount of 63 Alpha popcorn produced and consumed in Beta 30, the amount of peanuts produced and consumed in Beta 56 f now assume that both countries decide to trade Beta specializes entirely in the product it has a comparative advantage and Alpha 50 uses its resources to produce the product, it has a comparative advantage and uses 50 of its resources on other product then they trade 22 to 34 units of peanuts popcorn units Complete the table below and calculate the gains from trade both Alpha countries Without commercial production with the trade consumption savings commerce trade Beta Peanuts Peanuts Popcorn Popcorn 63 54 56 30 45 90 80 0 receives 22 gives 34 gives 22 receives 67 56 58 34 34 4 2 2 4 3 105 Econ torial Questions You May 3rd Floor Amy and Brad have to prepare a presentation for their marketing class As part of their pr presentation, they must make a series of calculations and prepare 50 PowerPoint slides should Amy 10 hours to perform the necessary calculations and 10 hours to prepare the slides should Brad 12 hours to make the calculations and 18 hours to prepare the slides a What the total amount of time they need to complete the project if they divide the calculations also and slides just as Amy spend 5 hours on the calculation and 5 hours PPT Brad slides pass 6 hours calculations and 9 hours on the slides PPT the total amount of time required for the project is 25 hours b What is the total amount of time they need to complete the project if they use comparative advantage and specialize in calculating or preparing Amy slides will specialize in PPT slides 10 pm, and Brad will specialize in calculations 12 hours total time needed to complete the project is 22 hours c If Amy and Brad have the same opportunity cost of 5 per hour, is there a better solution for each specialize in calculation or preparation of slides Amy goes 20 hours to make calculations and PPT Brad slides could work for 12 hours for 60 and then compensating Amy 55 or an amount between 50 and 60 both are better off as part b 4 Econ 105 issues Tutorial Ch 6 March a German worker takes 400 hours to produce a car and 2 hours to produce a case of wine a French worker takes 600 hours to produce a car and X hours to produce a case of wine for which values of X gains from trade can explain the gains trade will be possible when X does not match 3 when X 3, two countries have the same opportunity cost of producing cars and wine, and neither country has a comparative advantage for all are other values of X, a comparative advantage exists b For what values of X export cars from Germany and imported wine Explain Germany exports cars and I port wine for all values of X 3 for Germany to export cars and wine import, Germany must have the comparative advantage in the production of cars and France must have the comparative advantage in the production of wine When X 3, Germany comparative advantage slightest opportunity cost in cars 5 See the full document.
This document was downloaded 4 March 2017 for the course ECON 105 Simon Fraser.
Econ 105 Questions Tutorial Ch, ECON, tutorial issues.