Exam 3: Interdependence and the Gains From Trade

Figure 3-7 Bintu’s Production Possibilities Frontier Juba’s Production Possibilities Frontier -Refer to Figure 3-7.If the production possibilities frontiers shown are each for 4 hours of work,then which of the following combinations of bowls and cups could Bintu and Juba together make in a given 4-hour production period?

Figure 3-8 Chile’s Production Possibilities Frontier Colombia’s Production Possibilities Frontier -Refer to Figure 3-8.If Chile and Colombia each spends all of its time producing the good in which it has a comparative advantage and the countries agree to trade 7 pounds of coffee for 5 pounds of soybeans,then Chile will consume

In one month,Moira can knit 2 sweaters or 4 scarves.In one month,Tori can knit 1 sweater or 3 scarves.Together,they could produce more output in total if Moira knits only sweaters and Tori knits only scarves.

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

If US workers can produce everything in less time than Mexican workers,it is not possible for the US to gain from trade with Mexico.

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. Alice’s Production Possibilities Frontier Betty’s Production Possibilities Frontier -Refer to Figure 3-10.What are Alice and Betty's opportunity costs of 1 pitcher of lemonade?

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 not be on Huang's production possibilities frontier,based on a 36-hour production period?

Figure 3-8 Chile’s Production Possibilities Frontier Colombia’s Production Possibilities Frontier -Refer to Figure 3-8.Chile should specialize in the production of

Table 3-12 -Refer to Table 3-1.For the farmer,the opportunity cost of 1 pound of potatoes is

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.Which of the following points would not be on Barb's production possibilities frontier,based on a 40-hour week?

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.Which of the following combinations of meat and potatoes could the farmer produce in 24 hours?

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.Spain should export

Pocoyo bakes cookies and Pato grows vegetables.In which of the following cases is it impossible for both Pocoyo and Pato to benefit from trade?

Table 3-12 -Refer to Table 3-1.For the rancher,the opportunity cost of 16 pounds of meat is

Scenario 3-1.Ice cream and cake. The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time. -Refer to Scenario 3-1.Is it possible for Greg and Catherine to gain from trade? Defend your answer.

Define comparative advantage.

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 chair is

Figure 3-3 Arturo’s Production Possibilities Frontier Dina’s Production Possibilities Frontier -Refer to Figure 3-3.If Dina must work 0.25 hour to produce each taco,then her production possibilities frontier is based on how many hours of work?

Table 3-18 Chris and Tony's Production Opportunities -Refer to Table 3-18 Chris and Tony both produce tomatoes and pasta sauce.The table shows their possible production per month if both work the same number of 8 hour days.Given this information,Chris's opportunity cost of 1 lb.of tomatoes is

Figure 3-8 Chile’s Production Possibilities Frontier Colombia’s Production Possibilities Frontier -Refer to Figure 3-8.If the production possibilities frontiers shown are each for one day of production,then which of the following combinations of pounds of coffee and pounds of soybeans could Chile and Colombia together not make in a given day?