Exam 3: Interdependence and the Gains from Trade.

Explain the difference between absolute advantage and comparative advantage.Which is more important in determining trade patterns,absolute advantage or comparative advantage? Why?

Table 3-11 Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate. -Refer to Table 3-11.Falda has an absolute advantage in the production of

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 opportunity cost of 1 pound of meat for the farmer is

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.Which of the following represents Iceland's production possibilities frontier when 100 labor hours are available?

Figure 3-5 -Refer to Figure 3-5.If Hosne and Merve both spend all of their time making wallets,then total production is

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.England has an absolute advantage in the production of

Figure 3-7 -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 -Refer to Figure 3-8.Colombia should specialize in the production of

Table 3-12 -Refer to Table 3-12.Which of the following combinations of meat and potatoes could the farmer produce in 40 hours?

Travis can mow a lawn in two hours or he can trim a tree in one hour.Ricardo can mow a lawn in three hours or he can trim a tree in two hours.

Table 3-3 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-3.Which of the following represents Zimbabwe's and Portugal's production possibilities frontiers when each country has 60 minutes of machine time available?

Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage.

For international trade to benefit a country,it must benefit all citizens of that country.

Consider two individuals - Howard and Mai - each of whom would like to wear sweaters and eat tasty food.The gains from trade between Howard and Mai are least obvious in which of the following cases?

Figure 3-8 -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 coffee and soybeans could Chile and Colombia together make in a given day?

If Shawn can produce donuts at a lower opportunity cost than Sue,then

Figure 3-11 The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month. -Refer to Figure 3-11.In the nation of Cropitia,the opportunity cost of a pound of cheese is 1.5 pounds of ham.Based on this information,if Bonovia and Cropitia want to trade,Cropitia should specialize,in the production of

Suppose there are only two people in the world.Each person's production possibilities frontier also represents his or her consumption possibilities when

In one month,Moira can knit 2 sweaters or 4 scarves.In one month,Tori can knit 1 sweater or 3 scarves.Moira's opportunity cost of knitting scarves is lower than Tori's opportunity cost of knitting scarves.

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 be on Min's production possibilities frontier,based on a 36-hour production period?