AP Microeconomics: Unit 1: Basic Economic Concepts

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Question 1 · Unit 1: Basic Economic Concepts · standard

With the same daily resources, Rowan can make either 12 stools or 6 desks; Sora can make either 8 stools or 8 desks. Assume straight-line production possibilities and constant opportunity costs. Who has comparative advantage in desks?A. Rowan, because 12 exceeds 8.B. Sora, because one desk costs Sora 1 stool rather than Rowan's 2 stools.C. Both, because both can make desks.D. Neither, because opportunity costs are equal.

Question 13 · Unit 1: Basic Economic Concepts · standard

Under constant opportunity costs, country A gives up 2 units of coffee to make one unit of tea, while country B gives up 4 units of coffee to make one unit of tea. Ignoring transport costs, which terms of trade give both countries a strict gain when A exports tea to B?A. 1 coffee per teaB. 2 coffee per teaC. 3 coffee per teaD. 5 coffee per tea

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