Exam 3: Interdependence and the Gains From Trade

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

What is David Ricardo's contribution

Shawn can produce donuts at a lower opportunity cost than Sue.Who has an absolute or a comparative advantage in the production of donuts

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

Spain and Germany can both produce fish and cars.Spain has a comparative advantage in cars,but Germany has an absolute advantage in cars.What would Germany import from Spain

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 a comparative advantage in which product

What is trade based on

Janet and Patricia work for a home cleaning company and they form a team.In each room,there are two broad cleaning areas: floor and windows.Janet can do a floor in 40 minutes and windows in 25 minutes.Patricia does floors in 30 minutes and windows in 30 minutes. a.How long does it take to clean an apartment with 4 rooms if Janet takes 2 rooms and Patricia takes 2 rooms,assuming that if one finishes earlier she takes a break waiting for the other b.Later on,they decide that if one finishes earlier she would help the other to finish so that they can move on to another client.How long does it take now to finish c.After a while,they realize that it is better if one does the floors in all rooms and the other does the windows.How long does it take now?

Table 3-6 -Refer to Table 3-6.If Denmark and Italy specialize and trade according to their respective comparative advantage,who gains in the short run in Denmark

Figure 3-1 -Refer to Figure 3-1.What is the opportunity cost of 1 bushel of wheat for Cliff

Table 3-3 -Refer to Table 3-3.What is the opportunity cost of one sweater for Amy

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year,and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year.There are 20 workers in Cornland and 20 workers in Oatland.If the two countries do not trade,Cornland will produce and consume 400 bushels of corn and 100 bushels of oats,while Oatland will produce and consume 50 bushels of corn and 500 bushels of oats.Combined output for the two countries would therefore be 450 bushels of corn and 600 bushels of oats.If the two countries do trade,each will completely specialize in producing the crop for which it has a comparative advantage.If trade occurs,by what amount will the combined output for the two countries increase

What happens when countries specialize according to their comparative advantage

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.Who has a comparative or absolute advantage in what product

Figure 3-4 -Refer to Figure 3-4.For Ben,what is the opportunity cost of one bottle of beer

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

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 an absolute advantage in each product

Table 3-6 -Refer to Table 3-6.How could Denmark and Italy benefit

Table 3-5 -Refer to Table 3-5.Which country has an absolute or comparative advantage in each product

Mark is a computer company executive and earns $200 per hour managing the company and promoting its products.His daughter Regan is a high school student and earns $12 per hour helping her grandmother on the farm.Mark's computer is broken.He can repair it himself in one hour.Regan can repair it in 10 hours.Mark has a comparative advantage repairing the computer.