Exam 3: Interdependence and the Gains From Trade

Figure 3-3 -Refer to Figure 3-3.The opportunity cost of 1 pair of ballet slippers for Fred is

David Ricardo was the author of

Consider a shoemaker and a vegetable farmer.Potentially,trade could benefit both individuals if

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade based on the principle of comparative advantage,Spain will export which product to England?

Table 3-3 -Refer to Table 3-3.Montana has an absolute advantage in

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

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 4 tables or 20 chairs,where Sandy can make 6 tables or 18 chairs.Given this,we know that the opportunity cost of 1 chair is

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade based on the principle of comparative advantage,England will export which product to Spain?

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.England and Spain both could benefit,relative to a situation in which neither country is specializing,by England specializing in

The gains from trade are

Figure 3-2 -Refer to Figure 3-2.Suppose Ben and Jerry have both decided to produce at point A on their respective production possibilities frontiers.We know that

Which economist developed the theory of comparative advantage as we know it today?

Gary and Diane must prepare a presentation for their marketing class.As part of their presentation,they must do a series of calculations and prepare 50 PowerPoint slides.It would take Gary 10 hours to do the required calculation and 10 hours to prepare the slides.It would take Diane 12 hours to do the calculations and 20 hours to prepare the slides. a.How much time would it take the two to complete the project if they divide the calculations equally and the slides equally? b.How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides? c.If Diane and Gary have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?

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

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

Table 3-5 -Refer to Table 3-5.The opportunity cost of 1 airplane for Japan is

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade according to their respective comparative advantages,

Economists generally support

For the following question(s), use the accompanying table. Table 3-2 -Refer to Table 3-2.Helen 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.Which of the following statements is correct?