Question

Question 1 Question 3 At one time, mest of the watches produced in Germany were sold in Germany. Today, hewever, Germany both experts and imports watches, How could comparative advantage explain these data? The law of diminishing returns states that as additional increments of resources those additional increments_ the marginal bene it from Select the correct answer below Select the correct answer below: It cannot: comparative advantage predicts that a country either exports a product or imports it, not both The pattern b not due to comparative advantage but to government restrictions on production Germany has a comparative disadvantage in watches O are reduced, will decline eventually O are added; will decline eventually O are added: will increase eventually O are reducedt will remain the same Question4 Which of the following is a major difference between a budget constraint and production possibilities frontier? OGermany specializes in the production of high-end watches, which it exports, and imports low-end watches that can be produced at kwer cost elsewhere. QUESTION 2 In which of the following cases is productive efficiency improved? Select the correct answer belaw Select all that apply: O A production possibilities frontier conveys the relative prices of the two goods, whereas a budget constraint accounts for diminishing returns. A production possibilities frontier is usually straight, whereas a budget constraint is typically curved A budget constraint typically has a constant slope, whereas the slope of a production possibilities frontier is producing more output using the same input resources producing less output using the same input resources producing the same output using fewer input resources producing the same output using more input resources usually different at various points There is no difference. They convey the same information.

Answer 1

Answering only first four MCQ as per HomeworkLib policy

Q1)

Option D).

This trade pattern is explained by intra industry trade, ( two way trade in the similar product ) rather than comparative advantage.

Comparative advantage imply that a country will export the good whose opportunity cost of production is lower,

Q2) option A)

Productive efficiency imply using all the available inputs, resources to produce maximum possible units of output

Q3) option B)

Diminishing returns imply that as the more of a particular resource is added, it's marginal product falls continuously.

Q4) option C)

A budget constraint tends to have a constant slope & is generally a straight line

Where as a PPF is a curve generally with variable slope at different points.