Exam 3: Interdependence and the Gains From Trade

Table 3-36 -Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is

Table 3-31 ​ -Refer to Table 3-31. For the farmer, the opportunity cost of 15 pounds of meat is

Table 3-9 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. ​ -Refer to Table 3-9. Which of the following combinations of mixers and toasters could Maya produce in 60 hours?

Table 3-24 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. ​ ​ -Refer to Table 3-24. The opportunity cost of 1 unit of cheese for England is

The gains from specialization and trade are based on ______ advantage.

In one month, Moira can knit 2 sweaters or 4 scarves. In one month, Tori can knit 1 sweater or 3 scarves. Moira's opportunity cost of knitting scarves is lower than Tori's opportunity cost of knitting scarves.

Table 3-19 Summary of the Gains from Trade ​ -Refer to Table 3-19. The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade. What are Alice and Betty's gains from specialization and trade?

Table 3-41 ​ ​ -Refer to Table 3-41. What is Russia's opportunity cost of one radio?

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19. Chile's opportunity cost of one pound of soybeans is

​Table 3-38 -​Refer to Table 3-38. Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn or soybeans each state can produce in one growing season. Using the information from the table, Iowa's opportunity cost of producing one bushel of corn is

Table 3-34 Assume that Indonesia and India can switch between producing rice and bananas at a constant rate. ​ -Refer to Table 3-34. At which of the following prices, if any, can India and Indonesia both gain from trade?

Serena Williams should pay someone else to mow her lawn instead of mowing it herself, unless

Table 3-31 ​ -Refer to Table 3-31. In 10 hours,

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16. Merve should specialize in the production of

Table 3-24 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. ​ ​ -Refer to Table 3-24. England should specialize in the production of

Consider two individuals - Howard and Mai - each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases?

Figure 3-15 Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier -Refer to Figure 3-15. If Perry and Jordan switch from each person dividing their time equally between the production of novels and poems to each person spending all of their time producing the good in which they have a comparative advantage, then total production of novels will increase by

Table 3-15 ​ ​ -Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is

Table 3-7 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. ​ -Refer to Table 3-7. Which of the following combinations of meat and potatoes could the rancher not produce in 24 hours?

Table 3-39 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. ​ ​ ​ -Refer to Table 3-39. Japan should specialize in the production of