Exam 3: Interdependence and the Gains From Trade

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. What is Zardia's opportunity cost of producing one pound of beef?

In an economy consisting of two people producing two goods, it is possible for one person to have the absolute advantage and the comparative advantage in both goods.

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. The opportunity cost of 1 pound of potatoes for the rancher is

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. What is Andia's opportunity cost of producing one bushel of wheat?

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. If Hosne and Merve both spend all of their time making wallets, then total production is

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. We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea. If we were to do this, measuring cars along the horizontal axis, then

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10. Which of the following statements is correct regarding comparative advantage?

Figure 3-8 -Refer to Figure 3-8. Chile has a comparative advantage in the production of

Figure 3-4 -Refer to Figure 3-4. Which of the following is not correct?

Table 3-8 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. -Refer to Table 3-8. Which of the following points would be on Min's production possibilities frontier, based on a 36-hour production period?

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. Which of the following combinations of toothbrushes and hairbrushes could Zimbabwe not produce in 120 minutes?

Figure 3-6 -Refer to Figure 3-6. If the production possibilities frontier shown for Maxine is for 3 hours of work, then how long does it take Maxine to make one pie?

Figure 3-9 -Refer to Figure 3-9. If Uzbekistan and Azerbaijan each spends all its time producing the good in which it has a comparative advantage and trade takes place at a price of 12 bolts for 36 nails, 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. Assume that Japan and Korea each has 2400 hours available. If each country divides its time equally between the production of cars and airplanes, then total production is

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. Suppose Aruba decides to increase its production of radios by 10. What is the opportunity cost of this decision?

Table 3-17 US and French Production Opportunities Wire (in millions of pallons) Cheere (in millinns of lhs.) US 16 32 Frante 8 4 -Refer to Table 3-17 The US has a comparative advantage in the production of

Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. -Refer to Table 3-5. Which of the following combinations of cheese and bread could England not produce in 40 hours?

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. The rancher has an absolute advantage in the production of

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