Exam 3: Interdependence and the Gains From Trade

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

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.If Fred and Ginger both specialize in the good in which they have a comparative advantage,what would the total production be

Suppose a gardener produces both green beans and corn in her garden.If the opportunity cost of one bushel of corn is 2/3 bushel of green beans,what is the opportunity cost of 1 bushel of green beans

Figure 3-3 Ice cream and cones are measured in kilograms. -Refer to Figure 3-3.What does each of the two producers have a comparative advantage in

Which statement does NOT accurately outline an implication of our model of trade

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 6 tables or 18 chairs,where Sandy can make 5 tables or 25 chairs.Who has an absolute advantage in which product

Table 3-3 -Refer to Table 3-3.How could Kevin and Amy both benefit

Table 3-4 -Refer to the table.Who has a comparative advantage in the production of each good

Table 3-2 -Refer to Table 3-2.What does each producer have an absolute advantage in

Table 3-6 -Refer to Table 3-6.Which country has a comparative or absolute advantage in each product

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

A rancher can produce only beef,while a farmer can produce only potatoes.If the rancher and the farmer like both foods,which of the following is most likely

Suppose that a worker in Boatland can produce either 5 units of wheat or 20 units of fish per year,and a worker in Farmland can produce either 20 units of wheat or 5 units of fish per year.There are 10 workers in each country.Political pressure from the fish lobby in Farmland and the wheat lobby in Boatland has prevented trade between the two countries on the grounds that cheap imports would kill the fish industry in Farmland and the wheat industry in Boatland.As a result,Boatland produces and consumes 25 units of wheat and 100 units of fish per year while Farmland produces and consumes 100 units of wheat and 25 units of fish per year.If the political pressure was overcome and trade was to occur,each country would completely specialize in the product for which it has a comparative advantage.If trade were to occur,by how much would the combined output of the two countries increase

Trade allows a person to obtain goods at prices that are less than that person's opportunity cost because each person concentrates on the activity for which he or she has the lower opportunity cost.

Table 3-6 -Refer to Table 3-6.Denmark and Italy trade according to the principle of comparative advantage.If the international price of bread is 2.5 units of cheese for 1 unit of bread,what is the gain from trade to Denmark per unit of bread traded

Suppose Alberta and British Columbia (BC) have the production possibilities frontiers shown in the following graph.Suppose you wanted to determine which of the two provinces was economically better off.Is the given information sufficient If yes,which province is better off If not,make assumptions about the additional information that you need and determine which province is better off.How sensitive is your answer to variations in your assumptions

If there is no trade,which of the following is most likely

Suppose it takes a Chinese worker 2 hours to produce a ceramic pot,and 20 hours to produce a tablecloth.Suppose that it takes a Canadian worker 2 hours to produce a ceramic pot and 10 hours to produce a tablecloth.It will benefit China to produce extra pots and export them to Canada in return for imported Canadian tablecloths.

Figure 3-3 Ice cream and cones are measured in kilograms. -Refer to Figure 3-3.What does each of the two producers have a comparative or absolute advantage in

Rusty can edit two pages in one minute,and can type 80 words in one minute.Emily can edit one page in one minute,and can type 100 words in one minute.Rusty has an absolute and comparative advantage in editing,and Emily has an absolute and comparative advantage in typing.