Exam 3: Comparative Advantage and the Production Possibilities Frontier

Consider the data in the following table. -Referring to the table above, when trade opens up between Countries A and B. Country A should specialize in producing:

If Japan's economy is subject to increasing costs, then its supply curve of automobiles will be:

Consider the data in the following table. -Referring to the table above, Country A has an absolute advantage in the production of:

Gains from specialization and trade result in a country consuming:

A production possibilities frontier graphically represents the maximum output of a country when the supply of resources and technology are constant.

If the U.S. can produce a combination of 10 shirts or 10 TVs and Mexico can produce a combination of 9 shirts or 5 TVs, then what should the U.S. do?

A trading possibilities curve shows the consumption options a country has by specializing in the production of one good and trading or exporting it to obtain the other good.

International trade guarantees that countries that engage in trade all benefit by exactly the same amount. Is this statement true or false? Explain your answer.

Consider the data in the following table. -Referring to the table above, the opportunity cost of producing a computer in Country B is:

Consider the data in the following table. -Referring to the above table, Country B gains most from trade if a computer trades for:

Consider the data in the following table. -Referring to the table above, Country A gains most from trade if a computer trades for:

Which of the following statements is true?