Micro Economics MCQ (GK Set-1) with Answers

Micro Economics MCQ (GK Set-1) with Answers

46) The figure shows how much a worker can produce in one day. The opportunity cost of 1 unit of food in Korea is

Answer is:

1/4 of a unit of electronics.

47) The figure shows how much a worker can produce in one day. The opportunity cost of 1 unit of food in Australia is

Answer is:

1/2 of a unit of electronics.

48) The figure shows how much a worker can produce in one day. Which of the following statements about comparative advantage is true?

Australia has a comparative advantage in the production of both food and electronics

Korea has a comparative advantage in the production of both food and electronics

Korea has a comparative advantage in the production of food while Australia has a comparative advantage in the production of electronics.

Australia has a comparative advantage in the production of food while Korea has a comparative advantage in the production of electronics.

Answer is:

Korea has a comparative advantage in the production of food while Australia has a comparative advantage in the production of electronics.

49) The figure shows how much a worker can produce in one day. Australia should

Answer is:

specialize in electronics production, export electronics, and import food

50) The figure shows how much a worker can produce in one day. Prices of electronics can be stated in terms of units of food. What is the range of prices of electronics for which both countries could gain from trade?

Answer is:

The price must be greater than 2 of a unit of food but less than 4 of a unit of food

7
8
9
10
11
12
13