Exam 3: Interdependence and the Gains From Trade

Table 3-6 -Refer to Table 3-6.What is the opportunity cost of one unit of bread in Italy

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 advantage in each good

South Korea can produce shoes,clothes,TV sets,and computers cheaper than any other country.What would one expect South Korea to export

Table 3-4 -Refer to the table.If Alberta and Manitoba trade based on the principle of comparative advantage,what will be exported

Table 3-1 -Refer to Table 3-1.What is the opportunity cost of 1 kg of potatoes for the farmer

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 should Fred and Ginger produce

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 does each of the two producers have an absolute advantage in

Table 3-6 -Refer to Table 3-6.What is the opportunity cost of one unit of cheese in Italy

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

If there is trade,which of the following is most likely

Table 3-6 -Refer to Table 3-6.What is the opportunity cost of one unit of cheese in Denmark

Table 3-1 -Refer to Table 3-1.How could the farmer and rancher both benefit

Table 3-4 -Refer to the table.If Alberta and Manitoba trade based on the principle of comparative advantage,what will happen

Table 3-5 -Refer to Table 3-5.If Japan and Canada open up trade based on the principle of comparative advantage,who loses in the short term in Japan

Table 3-5 -Refer to Table 3-5.If Canada and Japan trade based on the principle of comparative advantage,what could Japan gain from exporting a car

As long as two people have different opportunity costs,each can gain from trade by being able to obtain a good at a price lower than his or her opportunity cost.

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 calculations 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

Figure 3-2 -Refer to Figure 3-2.Assume that Cliff and Paul were both producing wheat and corn,and both were dividing their time equally between the two.Then they decide to specialize in the product for which they have a comparative advantage.What would happen to the production of corn

What economic concept is the most relevant when defining comparative advantage

Table 3-1 -Refer to Table 3-1.What is the opportunity cost of 1 kg of potatoes for the rancher