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1. If the production possibility frontier were a straight line sloping down from left to this would suggest that:
a. more of both goods could be produced moving along the frontier. b. the two products must have the same price c. the opportunity costs of the products are constant d. there are no opportunity costs
2. Free trade between countries:
a. should be based on absolute advantage. b. wilt allow wealthy countries to exploit less developed nations. c. will shift the domestic production possibility frontier to the right d. will allow for greater levels of consumption than without trade
3. In a single day, Sarah can produce 10 hamburgers while Abe can produce 5 hamburgers. We then know that: a. Sarah has a comparative advantage in making hamburgers. b. Sarah has an absolute advantage in making hamburgers. c. Abe has a comparative advantage in making hamburgers. d. Abe has an absolute advantage in making hamburgers.
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