Exam 3: Interdependence and the Gains From Trade

Table 3-7 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. -Refer to Table 3-7. Japan has an absolute advantage in the production of

Table 3-7 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. -Refer to Table 3-7. Suppose Japan decides to increase its production of cars by 45. What is the opportunity cost of this decision?

Table 3-4 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. -Refer to Table 3-4. Assume that the farmer and the rancher each has 24 labor hours available. If each person spends all his time producing the good in which he has a comparative advantage and trade takes place at a price of 1 pound of meat for 2 pounds of potatoes, then

Table 3-4 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. -Refer to Table 3-4. The farmer has an absolute advantage in the production of

Figure 3-6 -Refer to Figure 3-6. If the production possibilities frontiers shown are each for one day of work, then which of the following combinations of pies and tarts could Maxine and Daisy together not make in a given day?

Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible?

By definition, exports are

Figure 3-3 -Refer to Figure 3-3. Dina has an absolute advantage in the production of

Figure 3-7 -Refer to Figure 3-7. The opportunity cost of 1 bowl for Juba is

Table 3-2 Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. -Refer to Table 3-2. Assume that Aruba and Iceland each has 80 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is

Table 3-7 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. -Refer to Table 3-7. Assume that Japan and Korea each has 2400 hours available. Originally, each country divided its time equally between the production of cars and airplanes. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of cars increased by

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

Figure 3-5 -Refer to Figure 3-5. Hosne's opportunity cost of one purse is

Economists generally support

Figure 3-5 -Refer to Figure 3-5. Hosne has an absolute advantage in the production of

Table 3-3 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-3. Portugal has an absolute advantage in the production of

Figure 3-9 -Refer to Figure 3-9. Suppose Uzbekistan decides to increase its production of bolts by 10. What is the opportunity cost of this decision?

Figure 3-9 -Refer to Figure 3-9. Azerbaijan should specialize in the production of

Table 3-15 The following table contains some production possibilities for an economy for a given month. Bragel: Donut: 40 150 60 ? 80 50 -Refer to Table 3-15. If the production possibilities frontier is bowed outward, then "?" could be

Table 3-6 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-6. Maya should specialize in the production of