Exam 3: Colonial Economic Activities

Suppose the only input in agriculture is time and the following chart depicts the time it took for the Middle Colonies and New England to produce barley and milk. Using the principle of comparative advantage, what would be the most efficient solution? To determine comparative advantage compare the productivities of producing the two goods - one in terms of the other. To produce 1 ton of milk, New England would have to not produce 3\4 tons of barley. The Middle Colonies must give up 6\5 of a ton of barley to produce 1 ton of milk. Therefore, New England has a lower opportunity cost of producing milk and the Middle Colonies have a lower opportunity cost of producing barley. New England should produce milk and trade for barley, while the MC should produce barley and trade for milk.

All of the following statements present accurate information about the 18^th century New England economy except :

What was not true about the economy of the Middle Colonies?

If a product exhibits increasing returns to scale, then the average cost of making the product will ______ as a company produces more of it?

In the 18^th century, the Middle colonies

Which colony was the last of the original 13 to be founded, and was designed to assist those who owed debts in the Old World?

In colonial Georgia,

What was false about the New England colonial economy?

Goods commonly produced by colonial households included

The colony of Georgia was established in 1732. During the colony's early years,

Colonial production of tobacco satisfied England's mercantilist interests because

The original reasons for founding the colony of Georgia do not include

The soil of the Middle Colonies is generally

According to the principle of comparative advantage,

During the colonial period, there were no apparent economies of large-scale production in

In the 18th century, Southern tobacco planters found that the use of ____________ was economical once the plantation reached a certain size.

If a product exhibits decreasing returns to scale, then the average cost of making the product will ______ as a company produces more of it?

Eighteenth century colonists lived in an age of_____.

During the colonial period, this region specialized in grain production, primarily using family farms:

In colonial America, ____________ was\were especially scarce, while the supply of _______________ was plentiful.