Exam 2: The Power of Trade and Comparative

Use the following to answer questions: Figure: Rice and Shirts -(Figure: Rice and Shirts) Use the PPFs shown for the United States and India. If the United States and India specialize and trade, one country will trade away 20 pounds of rice in exchange for 20 shirts from the other. Compared with no trade, ______ will be able to consume ______ additional shirts, and _____ will be able to consume an additional ______ pounds of rice.

Figure: Benin In the figure, Benin has 32 workers, and the price per ton of cotton and ton of rice is $2,500 and $1,200, respectively. The average wage with no trade is ______, and the average wage with trade is ________.

Trade refers to the exchange of goods and services between at least two different nations.

Use the following to answer questions: Figure: PPF Goods X & Y -(Figure: PPF Goods X & Y) Refer to the figure. Point A represents an allocation of resources that is:

Globalization is best described as:

Only a very small portion of people who use microwaves know how they work. This is an example of:

In a certain country it takes five of its 10 workers to produce one barrel of wine but only one worker to produce one yard of cloth. If we graphed this country's PPF (placing wine on the vertical axis and cloth on the horizontal axis), the slope of the PPF would equal -1/5.

The better a person is at producing one good:

A production possibilities frontier shows:

Specialization is an example of self-interest aligning with the social interest because it increases the amount you can consume as well as the amount society can consume.

As trade becomes more extensive, it slows down the creation of new ideas because fewer people can specialize in areas like science and engineering.

Which of the following situations would lead to more starvation?

Traders should specialize in the good: that:

Poor countries are at a distinct disadvantage when it comes to economic production; they get outcompeted in everything since they do not have a comparative advantage in anything.

Use the following to answer questions: Figure: PPF Mexico & United States -(Figure: PPF Mexico & United States) Use the above figure in which both Mexico and the United States each have 24 units of labor. Mexico has a comparative advantage in ______ and the United States has a comparative advantage in ______.

In a world with trade, no one can afford to specialize.

Use the following to answer questions: Figure: Computers and Books -(Figure: Computers and Books) According to the figure, both countries can increase consumption if:

Trading increases the amount a single country can produce.

The recent pace of globalization has been increased through:

Which of the following is typically a result of the division of knowledge?