Exam 3: Interdependence and the Gains From Trade

Table 3-1 Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate. -Refer to Table 3-1.Which of the following combinations of corn and pork could Tinaka not produce in one 10-hour day?

Table 3-1 Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate. -Refer to Table 3-1.Sardi has a comparative advantage in the production of

Belarus has a comparative advantage in the production of linen,but Russia has an absolute advantage in the production of linen.If these two countries decide to trade,

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

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

Table 3-6 Assume that Hilda and Carlos can switch between producing quilts and producing dresses at a constant rate. -Refer to Table 3-6.At which of the following prices would both Hilda and Carlos gain from trade with each other?

Regan grows flowers and makes ceramic vases.Jayson also grows flowers and makes ceramic vases,but Regan is better at producing both goods.In this case,trade could

Figure 3-6 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier -Refer to Figure 3-6.Suppose Maxine decides to increase her production of tarts by 5.What is the opportunity cost of this decision?

Figure 3-3 Bob's Production Possibilities Frontier Enid's Production Possibilities Frontier -Refer to Figure 3-3.Bob has an absolute advantage in the production of

Figure 3-6 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier -Refer to Figure 3-6.If Maxine and Daisy each divides her time equally between making pies and making tarts,then total production is

Table 3-8 Assume that Kito and Penda can switch between producing baskets and producing birdhouses at a constant rate. -Refer to Table 3-8.Penda has an absolute advantage in the production of

Two people can benefit from specialization and trade by obtaining a good at a price that is

For a country producing two goods,the opportunity cost of one good will be the inverse of the opportunity cost of the other good.

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 4 tables or 20 chairs,where Sandy can make 6 tables or 18 chairs.Given this,we know that the opportunity cost of 1 table is

The following table contains some production possibilities for an economy for a given month. If the production possibilities frontier is a straight line,then "?" must be

Ben bakes bread and Shawna knits sweaters.Ben and Shawna both like to eat bread and wear sweaters.In which of the following cases is it impossible for both Ben and Shawna to benefit from trade?

Figure 3-5 Puneet's Production Possibilities Frontier Chirag's Production Possibilities Frontier -Refer to Figure 3-5.Puneet has an absolute advantage in the production of

Figure 3-8 Belgium's Production Possibilities Frontier Latvia's Production Possibilities Frontier -Refer to Figure 3-8.If Belgium and Latvia each spends all its time producing the good in which it has a comparative advantage and the countries agree to trade 7 waffles for 5 pancakes,then Belgium will consume

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 40 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 2 pounds of meat for 6 pounds of potatoes,then

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.Assume that Aruba and Iceland each has 80 labor hours available.If each country divides its time equally between the production of coolers and radios,then total production is