If I trade a ginger snap for a chocolate chip cookie, I am engaging in
a. barter
b. comparative advantage
c. absolute advantage
d. privatization
e. division of labor
QUESTION 2Barter occurs when
a. two people share everything
b. one product is exchanged directly for another product
c. money is used to buy goods
d. money is exchanged directly for other money
e. goods are used to buy money
QUESTION 3Specialization often leads to gains in productivity for society as a whole.
a. True
b. False
QUESTION 4Specialization can sometimes create problems such as boredom and repetitive motion injuries.
a. True
b. False
QUESTION 5In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per cookie for Tetah is
a. 15
b. 15 sweaters
c. 32 sweaters
d. 1/32 of a sweater
e. 480 sweaters
QUESTION 6In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per sweater for Tetah is
a. 480
b. 480 cookies
c. 32 cookies
d. 1/32 of a cookie
e. 15 cookies
QUESTION 7In one week, Mohammed can knit 5 sweaters or bake 240 cookies. In one week, Tetah can knit 15 sweaters or bake 480 cookies. Mohammed and Tetah would produce the maximum quantities of cookies and sweaters if
a. Mohammed knitted and baked and Tetah did nothing
b. Tetah knitted and baked and Mohammed did nothing
c. Mohammed knitted and Tetah baked
d. Tetah knitted and Mohammed baked
e. Mohammed knitted and baked and Tetah just knitted
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