- Assume that time is the only resource required to
produce a good. The following table shows the
different amounts of time it takes for two
individuals to make one paper airplane and one
origami swan.
Michelle TomPlane 2 minutes 10 minutesSwan 3 minutes 20 minutesWhich of the following statements is true
according to the table above?
A. Michelle should be self-sufficient because
there would be no gains from trade.
B. Tom should be self-sufficient because there
would be no gains from trade.
C. There would be gains from trade if Michelle
specializes in planes and Tom specializes in
swans.
D. There would be gains from trade if Tom and
Michelle both specialize in planes.
E. There would be gains from trade if Michelle
specializes in swans and Tom specializes in
planes.Microeconomics Full-Length Practice Test 2Microeconomics Full-Length
Practice Test 2
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- Question 36 refers to the following graph.
The graph above shows the supply and demand for apartments in Limsfield. If the mayor of Limsfield decides to
set a price ceiling at $300 a month, what will happen in the housing market in Limsfield?
A. There will be a shortage of 200 apartments.
B. There will be a shortage of 800 apartments.
C. There will be a shortage of 600 apartments.
D. There will be a shortage of 300 apartments.
E. There will be a shortage of 500 apartments.SupplyDemand200 500 800 Quantity of
apartments$900$600$300Price: $/Unit