1The Dark Ages was a period in which trade:
Select one:
a expanded because of rising transportation and communication costs
b expanded because of falling transportation and communication costs
c decreased because world markets became more isolated
d decreased because world markets became less isolated
2Producers who have absolute advantages in all goods:
Select one:
a cannot exist
b have no use for trade
c are better off specializing in their comparative advantages and trading for other goods
d should avoid the global division of labor because it is counterproductive for them
3If instead of specialized doctors (neurologists, cardiologists, gastroenterologists, etc) we had doctors who each knew the same things about all aspects of medicine, it would be:
Select one:
a better because then we could just go to one doctor with no loss of quality in medical care
b better because total medical knowledge in society would increase
c worse because the human brain is limited
d worse because total medical knowledge in society would decrease
4Which of the following statements is TRUE?
Select one:
a Only a high-wage country can benefit by trading with a low-wage country
b A high-wage country cannot benefit by trading with a low-wage country
c Trade raises the wages of workers in low- and high-wage countries
d There is an inverse relationship between productivity and wages
5Jack and Jill work at a bakery In one hour, Jack can decorate either 5 ice-cream cakes or 2 wedding cakes In one hour, Jill can decorate either 4 ice-cream cakes or 1 wedding cake According to this scenario, _____ has a comparative advantage in decorating ice-cream cakes and _____ has a comparative advantage in decorating wedding cakes
Select one:
a Jack; Jack
b Jill; Jill
c Jack; Jill
d Jill; Jack