Exam 3: Interdependence and the Gains from Trade.

Table 3-12 -Refer to Table 3-1.Relative to the rancher,the farmer has

Table 3-1 Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-1.Assume that Andia and Zardia each has 360 minutes available.If each person divides his time equally between the production of wheat and beef,then total production is

Which of the following is not a reason people choose to depend on others for goods and services?

Table 3-2 Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. -Refer to Table 3-2.Which of the following combinations of coolers and radios could Aruba produce in one 40-hour week?

For both parties to gain from trade,the price at which they trade must lie exactly in the middle of the two opportunity costs.

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10.Both Alice and Betty

Tom Brady should pay someone else to mow his lawn instead of mowing it himself,unless

Table 3-9 Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies. -Refer to Table 3-9.Barb has an absolute advantage in

If a country has the comparative advantage in producing a product,then that country must also have the absolute advantage in producing that product.

Figure 3-5 -Refer to Figure 3-5.Hosne's opportunity cost of one wallet is

Ellie and Brendan both produce apple pies and vanilla ice cream.If Ellie's opportunity cost of one apple pie is 1/2 gallon of ice cream and Brendan's opportunity cost of one apple pie is 1/4 gallon of ice cream,Ellie has a comparative advantage in the production of ice cream.

Two individuals engage in the same two productive activities.In which of the following circumstances would neither individual have a comparative advantage in either activity?

Table 3-3 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-3.Assume that Zimbabwe and Portugal each has 180 machine minutes available.If each country divides its time equally between the production of toothbrushes and hairbrushes,then total production is

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10.If Alice produces only lemonade,she can produce

Table 3-10 Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies. -Refer to Table 3-10.Which of the following points would be on Juanita's production possibilities frontier,based on a 40-hour week?

Figure 3-7 -Refer to Figure 3-7.The opportunity cost of 1 bowl for Bintu is

A country that currently does not trade with other countries could benefit by

Trade between countries

Table 3-4 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. -Refer to Table 3-4.Assume that the farmer and the rancher each has 24 labor hours available.If each person spends all his time producing the good in which he has a comparative advantage and trade takes place at a price of 1 pound of meat for 2 pounds of potatoes,then

Table 3-7 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. -Refer to Table 3-7.Suppose Japan decides to increase its production of cars by 45.What is the opportunity cost of this decision?