Exam 3: Interdependence and the Gains from Trade.

Table 3-14 The following table contains some production possibilities for an economy for a given year. -Refer to Table 3-14.If the production possibilities frontier is a straight line,then "?" must be

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?

Figure 3-9 -Refer to Figure 3-9.If the production possibilities frontiers shown are each for two days of production,then which of the following combinations of bolts and nails could Uzbekistan and Azerbaijan together not make in a given 2-day production period?

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

Figure 3-7 -Refer to Figure 3-7.If Bintu and Juba each divides her time equally between making bowls and making cups,then total production is

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

By definition,exports are

Table 3-14 The following table contains some production possibilities for an economy for a given year. -Refer to Table 3-14.If the production possibilities frontier is bowed outward,then "?" could be

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

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn,then

Table 3-17 US and French Production Opportunities -Refer to Table 3-17 France has an absolute advantage in the production of

The only two countries in the world,Alpha and Omega,face the following production possibilities frontiers. Alpha's Production Possibilities Frontier Omega's Production Possibilities Frontier a.Assume that each country decides to use half of its resources in the production of each good.Show these points on the graphs for each country as point A. b.If these countries choose not to trade,what would be the total world production of popcorn and peanuts? c.Now suppose that each country decides to specialize in the good in which each has a comparative advantage.By specializing,what is the total world production of each product now? d.If each country decides to trade 100 units of popcorn for 100 units of peanuts,show on the graphs the gain each country would receive from trade.Label these points B.

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.Originally,each country divided its time equally between the production of cars and airplanes.Now,each country spends all its time producing the good in which it has a comparative advantage.As a result,the total output of cars increased by

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.Huang has an absolute advantage in the production of

Figure 3-7 -Refer to Figure 3-7.The opportunity cost of 1 bowl for Juba is

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2.Suppose Peru decides to increase its production of emeralds by 2.What is the opportunity cost of this decision?

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

Figure 3-1 -Refer to Figure 3-1.The rate of tradeoff between producing chairs and producing couches depends on how many chairs and couches are being produced in

Figure 3-9 -Refer to Figure 3-9.If the production possibilities frontiers shown are each for two days of production,then which of the following combinations of bolts and nails could Uzbekistan and Azerbaijan together make in a given 2-day production period?

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 24 labor hours available.If each person spends all his time producing the good in which he has a comparative advantage,then total production is