Exam 3: Interdependence and the Gains From Trade

Table 3-3 -Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in

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

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

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 ballet slippers for Ginger

It takes Russell 6 hours to produce a bushel of corn and 2 hours to wash and polish a car.It takes Wilma 6 hours to produce a bushel of corn and 1 hour to wash and polish a car.Wilma and Russell cannot gain from specialization and trade,since it takes each of them 6 hours to produce 1 bushel of corn.

Table 3-1 -Refer to Table 3-1.What does each producer have an absolute or comparative advantage in

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

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 a comparative advantage in each 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

When will a production possibilities frontier be linear and not bowed out

Table 3-3 -Refer to Table 3-3.What does each of the two producers have a comparative advantage in

Figure 3-4 -Refer to Figure 3-4.What does each of the two producers have an absolute advantage in

Suppose a gardener produces both green beans and corn in her garden.If she must give up 15 bushels of corn to get 5 bushels 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.For Jerry,what is the opportunity cost of 1 kg of cones

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

Figure 3-1 -Refer to Figure 3-1.If Paul divides his time equally between corn and wheat,what will he be able to produce

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

Table 3-3 -Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in

Figure 3-2 -Refer to Figure 3-2.If Paul divides his time equally between corn and wheat,what will he be able to produce

Suppose Argentina (A) and Bolivia (B) only trade with each other and they both produce the same two goods: grocery (G) and fish (F).Given its resources,Argentina can produce either 2 units of grocery per day or 1 unit of fish; Bolivia can produce either 5 units of grocery or 4 units of fish. a.Draw the production possibilities frontiers for each country on separate graphs. b.If there were no trade,what would be the local price of fish in each country,measured in units of grocery c.If trade is allowed,which country will export fish and which country will export grocery (if any) d.What are the gains from trading a unit of fish if the international price of fish is equal to the average of the local prices in the two countries e.How are the gains from trade distributed Comment on your result.