Exam 3: Interdependence and the Gains From Trade

The producer that requires a smaller quantity of inputs to produce a certain amount of a good,relative to the quantities of inputs required by other producers to produce the same amount of that good,

Table 3-3 -Refer to Table 3-3.The opportunity cost of 1 birdhouse for Montana is

Figure 3-5 The graph below represents the various combinations of cars and corn that Country A could produce in a given month. (On the vertical axis, corn is measured in bushels.) -Refer to Figure 3-5.Under which of the following circumstances would Country A be able to consume outside of its production possibilities frontier?

Unless two people who are producing two goods have exactly the same opportunity costs,then one person will have a comparative advantage in one good,and the other person will have a comparative advantage in the other good.

Trade can make everybody better off because it

If Shawn can produce more donuts in one day than Sue can produce in one day,then

Table 3-1 -Refer to Table 3-1.The rancher has an absolute advantage in

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.England has a comparative advantage in

Figure 3-2 -Refer to Figure 3-2.Ben has an absolute advantage in

Table 3-5 -Refer to Table 3-5.The United States has a comparative advantage in

Table 3-4 Brenda and Eric run a business that involves setting up and testing computers. The following table applies. -Refer to Table 3-4.For Brenda,the opportunity cost of testing a computer is

Figure 3-2 -Refer to Figure 3-2.Suppose Jerry's production possibilities frontier is based on 4 hours of work.Jerry requires

Figure 3-1 -Refer to Figure 3-1.Which of the following statements is correct?

Figure 3-2 -Refer to Figure 3-2.Ben has a comparative advantage in

David Ricardo

Figure 3-2 -Refer to Figure 3-2.For Ben,the opportunity cost of 1 pound of cones is

Table 3-5 -Refer to Table 3-5.The opportunity cost of 1 car for the United States is

Figure 3-2 -Refer to Figure 3-2.For Jerry,the opportunity cost of 1 pound of ice cream is

Figure 3-1 -Refer to Figure 3-1.Suppose Paul must work 2 hours to produce each bushel of corn.Then Paul

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.The opportunity cost of 1 unit of cheese in England is