Exam 3: Interdependence and the Gains from Trade.

A production possibilities frontier is a graph that shows the combination of outputs that an economy should produce.

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.At which of the following prices would both England and Spain gain from trade with each other?

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.If Chris and Tony both decide to specialize and produce only the good in which they have a comparative advantage,then

Figure 3-6 -Refer to Figure 3-6.If the production possibilities frontier shown for Maxine is for 3 hours of work,then how long does it take Maxine to make one pie?

Figure 3-8 -Refer to Figure 3-8.Colombia would incur an opportunity cost of 24 pounds of coffee if it increased its production of soybeans by

It is possible for the U.S.to gain from trade with Germany even if it takes U.S.workers fewer hours to produce every good than it takes German workers.

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.Which of the following combinations of cheese and bread could Spain produce in 40 hours?

Opportunity cost measures the trade-off between two goods that each producer faces.

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

When can two countries gain from trading two goods?

Which of the following is not an example of the principle that trade can make everyone better off?

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 combinations of toothbrushes and hairbrushes could Portugal produce in 30 minutes?

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.Min has an absolute advantage in the production of

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.The opportunity cost of 1 unit of cheese for Spain is

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2.If the production possibilities frontier shown is for 40 hours of production,then how long does it take Peru to make one emerald?

Figure 3-7 -Refer to Figure 3-7.Suppose Juba is willing to trade one bowl to Bintu for every two cups that Bintu makes and sends to Juba.Which of the following combinations of bowls and cups could Bintu then consume,assuming Bintu specializes in making cups and Juba specializes in making bowls?

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

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.Barb's opportunity cost of testing one computer is setting up

Figure 3-4 -Refer to Figure 3-4.Jordan should specialize in the production of

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 should specialize in the production of