Trade and Opportunity Costs
This passage and table describe the opportunity costs faced by two countries.
1 The countries of Grand Coast and Toland are trading partners. The two main goods
traded are timber and fish. Every year the ministers of trade from each country
attend an international conference to discuss issues related to foreign trade and
decide how each country should specialize. The table provides economic data for
one year.
Which policy would be most effective to increase Grand Coast's comparative advantage over Toland?
- A. Raise taxes on factories and mills
- B. Encourage more workers to pursue fishing
- C. Maintain spending on infrastructure projects
- D. Improve technology used to produce timber
Correct Answer & Rationale
Correct Answer: B
Encouraging more workers to pursue fishing enhances Grand Coast's comparative advantage by capitalizing on its natural resources and existing industry strengths. This shift allows for specialization, leading to increased efficiency and production in fishing, where Grand Coast may already excel compared to Toland. Raising taxes on factories and mills (A) could deter investment and reduce manufacturing output, weakening economic competitiveness. Maintaining spending on infrastructure projects (C) may improve overall economic conditions but does not directly target enhancing comparative advantage. Improving technology for timber production (D) could be beneficial but may not align with Grand Coast's most advantageous industries compared to fishing.
Encouraging more workers to pursue fishing enhances Grand Coast's comparative advantage by capitalizing on its natural resources and existing industry strengths. This shift allows for specialization, leading to increased efficiency and production in fishing, where Grand Coast may already excel compared to Toland. Raising taxes on factories and mills (A) could deter investment and reduce manufacturing output, weakening economic competitiveness. Maintaining spending on infrastructure projects (C) may improve overall economic conditions but does not directly target enhancing comparative advantage. Improving technology for timber production (D) could be beneficial but may not align with Grand Coast's most advantageous industries compared to fishing.
Other Related Questions
When is a government most likely to establish a wage floor?
- A. When wages have consistently increased over a long period of time
- B. When wages have remained constant over a long period of time
- C. When it determines wages are too low
- D. When it determines wages are too high
Correct Answer & Rationale
Correct Answer: C
A wage floor, often implemented through minimum wage laws, is typically established when the government identifies that wages are too low, leading to insufficient income for workers. Option A is incorrect because a consistent increase in wages does not necessitate a wage floor; it may indicate a healthy economy. Option B is also wrong, as constant wages may not reflect a need for intervention unless they are deemed inadequate. Option D misinterprets the purpose of a wage floor; it is not set when wages are high, but rather to protect workers from unlivable pay levels. Thus, the rationale for a wage floor centers on addressing low wages.
A wage floor, often implemented through minimum wage laws, is typically established when the government identifies that wages are too low, leading to insufficient income for workers. Option A is incorrect because a consistent increase in wages does not necessitate a wage floor; it may indicate a healthy economy. Option B is also wrong, as constant wages may not reflect a need for intervention unless they are deemed inadequate. Option D misinterprets the purpose of a wage floor; it is not set when wages are high, but rather to protect workers from unlivable pay levels. Thus, the rationale for a wage floor centers on addressing low wages.
Most governmental power under the Articles of Confederation belonged to
- A. the states.
- B. the king.
- C. the president.
- D. the judiciary.
Correct Answer & Rationale
Correct Answer: A
Under the Articles of Confederation, most governmental power resided with the states, reflecting the desire for local governance and autonomy after independence. This decentralization limited the federal government's authority, making option A the most accurate choice. Option B, the king, is incorrect as the Articles were established to break away from monarchical rule. Option C, the president, is misleading since the Articles did not create a strong executive branch; the role of president was largely ceremonial. Option D, the judiciary, is also wrong as the Articles provided minimal judicial power, leaving most authority with state courts.
Under the Articles of Confederation, most governmental power resided with the states, reflecting the desire for local governance and autonomy after independence. This decentralization limited the federal government's authority, making option A the most accurate choice. Option B, the king, is incorrect as the Articles were established to break away from monarchical rule. Option C, the president, is misleading since the Articles did not create a strong executive branch; the role of president was largely ceremonial. Option D, the judiciary, is also wrong as the Articles provided minimal judicial power, leaving most authority with state courts.
A police department allows a person suspected of committing a crime to refuse to answer questions asked by the investigating officer. Which amendment protects this right?
- A. Amendment 1
- B. Amendment 4
- C. Amendment 5
- D. Amendment 6
Correct Answer & Rationale
Correct Answer: C
The Fifth Amendment protects individuals from self-incrimination, allowing a person suspected of a crime to refuse to answer questions posed by law enforcement. This right ensures that individuals cannot be compelled to provide testimony that could implicate them in a crime. Option A, the First Amendment, pertains to freedoms of speech, religion, press, assembly, and petition, but does not address self-incrimination. Option B, the Fourth Amendment, protects against unreasonable searches and seizures, but does not relate to questioning. Option D, the Sixth Amendment, guarantees rights related to criminal prosecutions, such as the right to counsel and a fair trial, but does not specifically cover the right to remain silent during questioning.
The Fifth Amendment protects individuals from self-incrimination, allowing a person suspected of a crime to refuse to answer questions posed by law enforcement. This right ensures that individuals cannot be compelled to provide testimony that could implicate them in a crime. Option A, the First Amendment, pertains to freedoms of speech, religion, press, assembly, and petition, but does not address self-incrimination. Option B, the Fourth Amendment, protects against unreasonable searches and seizures, but does not relate to questioning. Option D, the Sixth Amendment, guarantees rights related to criminal prosecutions, such as the right to counsel and a fair trial, but does not specifically cover the right to remain silent during questioning.
Based on the obituary, for what was Taylor best known?
- A. Being president of the American Society of Mechanical Engineers
- B. Winning a U.S. tennis championship
- C. Inventing a way to treat high-speed tools
- D. Developing theories on scientific management
Correct Answer & Rationale
Correct Answer: D
Taylor was best known for developing theories on scientific management, which revolutionized industrial efficiency and productivity. His principles laid the groundwork for modern management practices, making him a pivotal figure in the field. Option A is incorrect; while Taylor may have had connections to engineering societies, he is not primarily recognized for his presidency in any organization. Option B is not applicable, as there is no evidence linking him to tennis achievements. Option C, although related to engineering, does not capture the essence of Taylor's legacy, which centers on management theory rather than specific inventions.
Taylor was best known for developing theories on scientific management, which revolutionized industrial efficiency and productivity. His principles laid the groundwork for modern management practices, making him a pivotal figure in the field. Option A is incorrect; while Taylor may have had connections to engineering societies, he is not primarily recognized for his presidency in any organization. Option B is not applicable, as there is no evidence linking him to tennis achievements. Option C, although related to engineering, does not capture the essence of Taylor's legacy, which centers on management theory rather than specific inventions.