Exam 3: Interdependence and the Gains from Trade.

Regan grows flowers and makes ceramic vases.Jayson also grows flowers and makes ceramic vases,but Regan is better at producing both goods.In this case,trade could

For two individuals who engage in the same two productive activities,it is impossible for one of the two individuals to

It takes Ross 6 hours to produce a bushel of corn and 2 hours to wash and polish a car.It takes Courtney 6 hours to produce a bushel of corn and 1 hour to wash and polish a car.Courtney and Ross cannot gain from specialization and trade,since it takes each of them 6 hours to produce 1 bushel of corn.

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 a comparative advantage in the production of

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 4 tables or 20 chairs,while Sandy can make 6 tables or 18 chairs.Given this,we know that

Figure 3-8 -Refer to Figure 3-8.Chile and Colombia would not be able to gain from trade if Colombia's opportunity cost of one pound of soybeans changed to

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

As long as two people have different opportunity costs,each can gain from trade with the other,since trade allows each person to obtain a good at a price lower than his or her opportunity cost.

A person can benefit from specialization and trade by obtaining a good at a price that is

Figure 3-8 -Refer to Figure 3-8.Chile would incur an opportunity cost of 36 pounds of coffee if it increased its production of soybeans by

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

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.Which of the following prices would result in a mutually advantageous trade between Chris and Tony?

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

Table 3-1 Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-1.What is Andia's opportunity cost of producing one pound of beef?

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.Whenever Bonovia increases its production of ham by 1 pound per month,then it must decrease its production of cheese by

Table 3-6 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-6.The opportunity cost of 1 mixer for Maya 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.Assume that Aruba and Iceland each has 80 labor hours available.If each country divides its time equally between the production of coolers and radios,then total production is

Table 3-12 -Refer to Table 3-1.In 10 hours,

Table 3-12 -Refer to Table 3-1.Relative to the rancher,the farmer has a comparative advantage in the production of

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