Exam 3: Interdependence and the Gains from Trade

Table 3-5 -Refer to Table 3-5.What is the opportunity cost of one airplane for Japan?

Figure 3-4 -Refer to Figure 3-4.Suppose Ben and Jerry both spend half their time producing beer and half their time producing wine.How much wine and beer does each produce?

Table 3-1 -Refer to Table 3-1.What is the opportunity cost of 1 kg of meat for the farmer?

Table 3-6 -Refer to Table 3-5.How could England and Spain benefit?

Figure 3-5 These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour. -Refer to Figure 3-5.Who has a comparative or absolute advantage in what product? ?

Figure 3-3 Ice cream and cones are measured in kilograms. -Refer to Figure 3-3.For Jerry,what is the opportunity cost of 1 kg of ice cream?

Table 3-5 -Refer to Table 3-5.What is the opportunity cost of one airplane for Canada?

Table 3-5 -Refer to Table 3-5.If Japan and Canada open up trade based on the principle of comparative advantage,who loses in the short term in Japan?

Table 3-5 -Refer to Table 3-5.If Canada and Japan trade based on the principle of comparative advantage,what could Japan gain from importing a car?

Table 3-5 -Refer to Table 3-5.If Canada and Japan trade based on the principle of comparative advantage,what could Canada gain from importing an airplane?

Table 3-2 -Refer to Table 3-2.What is the opportunity cost of 1 kilogram of meat for the rancher?

Table 3-4 -Refer to the table.What is the opportunity cost of one basket for Manitoba?

Table 3-5 -Refer to Table 3-5.What is the opportunity cost of one car for Japan?

What happens when countries specialize according to their comparative advantage?

Table 3-3 -Refer to Table 3-3.What is the opportunity cost of one quilt for Helen?

The producer who has the smaller opportunity cost of producing a good is said to have an absolute advantage in producing that good.

Figure 3-5 These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour. -Refer to Figure 3-5.What is the opportunity cost of one pair of tap shoes for Fred?

Table 3-5 -Refer to Table 3-5.What is the opportunity cost of one car for Canada?

Which book did David Ricardo write?

Figure 3-6 These figures illustrate the production possibilities available to Barney and Betty with eight hours of labour in their bakery. -Refer to Figure 3-6.Who has an absolute advantage in each product?