B.Jill should specialize in reviewing articles and Jim in typing.

c.Jill should perform both tasks, since she is better at both than Jim.

d.Jim should perform both tasks, since he is better at both than Jill.

29.

Suppose that Jill can type 10 pages per hour in the computer, while Jim can only type 8. Further suppose that Jill can review 5 articles per hour while Jim can only review 2. Based on this, we can say that:

a.Jim has a comparative advantage over Jill in reviewing articles.

B.Jill has an absolute advantage over Jim in reviewing articles.

c.Jim has an absolute advantage over Jill in typing.

d.Jill has a comparative advantage over Jim in typing.

30.

The principle of Comparative Advantage argues all of the following, EXCEPT:

a.specialization allows producers to produce goods for which they have a lower opportunity cost.

B.free trade tends to cause bankruptcies and high unemployment in the long run.

c.free trade allows producers to specialize.

d.as producers specialize, overall production increases, making everybody better off.

The Market Forces of Supply and Demand

31.

Which of the following is NOT a characteristic of a perfectly competitive market?

a.The goods being offered for sale are all the same.

b.Buyers and sellers are very numerous.

c.Buyers and sellers are price takers.

D.It is difficult for new firms to enter the market.

32.

A market with only one firm is known as a:

a.complementary market.

B.monopoly.

c.perfectly competitive market.

d.normal market.

33.

An increase in demand means that:

a.when the price drops consumers are willing to purchase greater quantities of the good.

B.consumers are willing to purchase greater quantities of the good at any given price.

c.when the price rises, consumers are willing to purchase greater quantities of the good.

d.consumers make the price drop by buying greater quantities of the good.

34.

If good B is a substitute for good A, and the price of good B increases:

a.the quantity demanded of good A will decrease.

B.the demand for good A will increase.

c.the price of good A will tend to decrease.

d.the quantity demanded of good B will increase.

35.

When the price of a good increases:

A.the quantity supplied of the good will increase.

b.the quantity supplied of the good will decrease.

c.the supply curve of the good will shift to the right.

d.the supply curve of the good will shift to the left.

36.

A new technology that helps firms reduce production costs will cause a:

a.movement down and to the left along the supply curve.

b.movement up and to the right along the supply curve.