Table 3-4 \(\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make one unit of: }&&\text { Amount Produced in } 40 \text { hours: }\\ \hline & \text { Cheese } & \text { Bread } & \text { Cheese } & \text { Bread } \\ \hline \text { England } & 3 & 2 & 13.3 & 20 \\ \hline \text { Spain } & 1 & 5 & 40 & 8 \\ \hline \end{array}\) -According to Table 3-4, if England and Spain do not trade:

A) they will both be better off B) they will miss out on the opportunity to expand their production possibilities frontier C) they will consume inside their production possibilities frontier D) they will have absolute advantage over each other in the production of both goods A) they will both be better off B) they will miss out on the opportunity to expand their production possibilities frontier C) they will consume inside their production possibilities frontier D) they will have absolute advantage over each other in the production of both goods

Table 3-3 \(\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\ \hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\ \hline \text { US } & 40 & 160 & 60 & 15 \\ \hline \text { Europe } & 50 & 150 & 48 & 16 \\ \hline \end{array}\) -Refer to Table 3-3.If the US and Europe trade according to the principle of comparative advantage:

A) the US will export cars and Europe will export aeroplanes B) the US will export aeroplanes and Europe will export cars C) the US will export cars and Europe will export cars D) the US will export aeroplanes and Europe will export aeroplanes A) the US will export cars and Europe will export aeroplanes B) the US will export aeroplanes and Europe will export cars C) the US will export cars and Europe will export cars D) the US will export aeroplanes and Europe will export aeroplanes

Table 3-1 \(\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make } 1 \mathrm{~kg} \text { of: }&&\text { Kgs produced in } 20 \text { hours: }\\ \hline & \text { Meat } & \text { Potatoes } & \text { Meat } & \text { Potatoes } \\ \hline \text { Potato farmer } & 10 & 5 & 2 & 4 \\ \hline \text { Zattle farmer } & 4 & 1 & 5 & 20 \\ \hline \end{array}\) -Refer to Table 3-1.For the cattle farmer, the opportunity cost of one kg of potatoes is:

A) four hours of labour B) two hours of labour C) 1/4 kg of meat D) 4 kg of meat A) four hours of labour B) two hours of labour C) 1/4 kg of meat D) 4 kg of meat

Table 3-4 \(\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make one unit of: }&&\text { Amount Produced in } 40 \text { hours: }\\ \hline & \text { Cheese } & \text { Bread } & \text { Cheese } & \text { Bread } \\ \hline \text { England } & 3 & 2 & 13.3 & 20 \\ \hline \text { Spain } & 1 & 5 & 40 & 8 \\ \hline \end{array}\) -Refer to Table 3-4.The opportunity cost of one unit of bread in England is:

A) 2/3 unit of cheese B) two units of cheese C) one unit of cheese D) 1/2 unit of cheese A) 2/3 unit of cheese B) two units of cheese C) one unit of cheese D) 1/2 unit of cheese

Table 3-2 \(\begin{array}{|c|c|c|c|c|}\hline&\text { Labour hours needed to produce one unit of: }&&\text { Amount produced in } 60 \text { hours: }\\ \hline & \text { Butter (kg) } & \text { Butter (kg } & \text { Rice (kg) } & \text { Rice (kg) } \\ \hline \text { Lee } & 6 & 10 & 15 & 4 \\ \hline \text { John } & 3 & 20 & 15 & 4\\\hline \end{array}\) -Refer to Table 3-2.For John the opportunity cost of one kg of rice:

A) 3/4 kg of butter B) 3/2 kg of butter C) 4/3 kg of butter D) 2/3 kg of butter A) 3/4 kg of butter B) 3/2 kg of butter C) 4/3 kg of butter D) 2/3 kg of butter

A) wrote An Inquiry into the Nature and Causes of the Wealth of Nations B) opposed free trade C) wrote the general theory of economics D) all of the above are correct A) wrote An Inquiry into the Nature and Causes of the Wealth of Nations B) opposed free trade C) wrote the general theory of economics D) all of the above are correct

Exam 3: Interdependence and the Gains From Trade

Table 3-4 Labour hours needed to make one unit of: Amount Produced in 40 hours: Cheese Bread Cheese Bread England 3 2 13.3 20 Spain 1 5 40 8 -According to Table 3-4, if England and Spain do not trade:

(Multiple Choice)

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Question 41

Graph 3-1 These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour. -Refer to Graph 3-1.For Robinson Crusoe, the opportunity cost of 1 kg of coconuts is:

(Multiple Choice)

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Question 42

Table 3-3 Hours needed to make one unit of: Amount produced in 2400 hours: Cars Aeroplanes Cars Aeroplanes US 40 160 60 15 Europe 50 150 48 16 -Refer to Table 3-3.If the US and Europe trade according to the principle of comparative advantage:

(Multiple Choice)

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Question 43

The conclusions of Adam Smith and David Ricardo on the gains from trade are no longer valid due to the increase of barriers to trade.

(True/False)

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Question 44

Table 3-1 Labour hours needed to make 1 of: Kgs produced in 20 hours: Meat Potatoes Meat Potatoes Potato farmer 10 5 2 4 Zattle farmer 4 1 5 20 -Refer to Table 3-1.For the cattle farmer, the opportunity cost of one kg of potatoes is:

(Multiple Choice)

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Question 45

Table 3-4 Labour hours needed to make one unit of: Amount Produced in 40 hours: Cheese Bread Cheese Bread England 3 2 13.3 20 Spain 1 5 40 8 -Refer to Table 3-4.The opportunity cost of one unit of bread in England is:

(Multiple Choice)

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Question 46

If it takes Australian workers fewer hours to produce every good than it takes Malaysian workers, Australia cannot gain from trade with Malaysia.

(True/False)

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Question 47

Absolute advantage is found by:

(Multiple Choice)

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Question 48

Table 3-2 Labour hours needed to produce one unit of: Amount produced in 60 hours: Butter (kg) Butter (kg Rice (kg) Rice (kg) Lee 6 10 15 4 John 3 20 15 4 -Refer to Table 3-2.For John the opportunity cost of one kg of rice:

(Multiple Choice)

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Question 49

Adam Smith:

(Multiple Choice)

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Question 50

How do consumption possibilities differ between a situation of no trade and a situation of trade?

(Essay)

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Question 51

International trade may make some individuals in a nation better off, while other individuals are made worse off.

(True/False)

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Question 52

David Ricardo made the statement that 'It is a maxim of every prudent master of a family never to attempt to make at home what it will cost him more to make than to buy'.

(True/False)

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Question 53

In the absence of international importing and exporting:

(Multiple Choice)

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Question 54

Graph 3-2 These figures illustrate the production possibilities available to Amy and Jim with 8 hours of labour. -According to Graph 3-2, if Amy and Jim devote half of their time (four hours) to the production of each good, total production of coffee and total production of doughnuts by both would be _____ respectively.

(Multiple Choice)

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Question 55

A butcher can produce only hamburgers, and a farmer can produce only potato chips.The butcher and the farmer both like both foods.They:

(Multiple Choice)

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Question 56

Graph 3-2 These figures illustrate the production possibilities available to Amy and Jim with 8 hours of labour. -Refer to Graph 3-2.The opportunity cost of one doughnut for Amy is:

(Multiple Choice)

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Question 57

Lee can pick 30 apples in one hour.He can pick 60 kiwifruit in half an hour.The opportunity cost to Lee of picking one apple is four kiwifruit.

(True/False)

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Question 58

Graph 3-1 These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour. -According to Graph 3-1:

(Multiple Choice)

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Question 59

Michael can score 30 points per basketball game and Scottie can score 22 points per game.Michael has an absolute advantage over Scottie in scoring.

(True/False)

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Question 60

Exam 3: Interdependence and the Gains From Trade

Table 3-4 Labour hours needed to make one unit of: Amount Produced in 40 hours: Cheese Bread Cheese Bread England 3 2 13.3 20 Spain 1 5 40 8 -According to Table 3-4, if England and Spain do not trade:

Graph 3-1 These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour. -Refer to Graph 3-1.For Robinson Crusoe, the opportunity cost of 1 kg of coconuts is:

Table 3-3 Hours needed to make one unit of: Amount produced in 2400 hours: Cars Aeroplanes Cars Aeroplanes US 40 160 60 15 Europe 50 150 48 16 -Refer to Table 3-3.If the US and Europe trade according to the principle of comparative advantage:

The conclusions of Adam Smith and David Ricardo on the gains from trade are no longer valid due to the increase of barriers to trade.

Table 3-1 Labour hours needed to make 1 of: Kgs produced in 20 hours: Meat Potatoes Meat Potatoes Potato farmer 10 5 2 4 Zattle farmer 4 1 5 20 -Refer to Table 3-1.For the cattle farmer, the opportunity cost of one kg of potatoes is:

Table 3-4 Labour hours needed to make one unit of: Amount Produced in 40 hours: Cheese Bread Cheese Bread England 3 2 13.3 20 Spain 1 5 40 8 -Refer to Table 3-4.The opportunity cost of one unit of bread in England is:

If it takes Australian workers fewer hours to produce every good than it takes Malaysian workers, Australia cannot gain from trade with Malaysia.

Absolute advantage is found by:

Table 3-2 Labour hours needed to produce one unit of: Amount produced in 60 hours: Butter (kg) Butter (kg Rice (kg) Rice (kg) Lee 6 10 15 4 John 3 20 15 4 -Refer to Table 3-2.For John the opportunity cost of one kg of rice:

Adam Smith:

How do consumption possibilities differ between a situation of no trade and a situation of trade?

International trade may make some individuals in a nation better off, while other individuals are made worse off.

David Ricardo made the statement that 'It is a maxim of every prudent master of a family never to attempt to make at home what it will cost him more to make than to buy'.

In the absence of international importing and exporting:

A butcher can produce only hamburgers, and a farmer can produce only potato chips.The butcher and the farmer both like both foods.They:

Graph 3-2 These figures illustrate the production possibilities available to Amy and Jim with 8 hours of labour. -Refer to Graph 3-2.The opportunity cost of one doughnut for Amy is:

Lee can pick 30 apples in one hour.He can pick 60 kiwifruit in half an hour.The opportunity cost to Lee of picking one apple is four kiwifruit.

Graph 3-1 These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour. -According to Graph 3-1:

Michael can score 30 points per basketball game and Scottie can score 22 points per game.Michael has an absolute advantage over Scottie in scoring.

Ten Lessons From Economics

Thinking Like an Economist

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand and Government Policies

Consumers, Producers and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Business Strategy and Oligopoly

Competition Policy

The Markets for the Factors of Production

Earnings, Unions and Discrimination

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Global Financial Crisis of 2008 and Beyond

Five Debates Over Macroeconomic Policy

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