Exam 3: Interdependence and the Gains From Trade

Table 3-17 US and French Production Opportunities Wire (in millions of pallons) Cheere (in millinns of lhs.) US 16 32 Frante 8 4 -Refer to Table 3-17 France has an absolute advantage in the production of

Suppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in auto parts. If the US exports semiconductors to Mexico and imports auto parts from Mexico,

If a person chooses self-sufficiency, then she can only consume what she produces.

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. Korea has an absolute advantage in the production of

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

Figure 3-4 -Refer to Figure 3-4. The opportunity cost of 1 novel for Jordan is

Zora can produce 4 quilts in a week and she can produce 1 corporate website in a week. Lou can produce 9 quilts in a week and he can produce 2 corporate websites in a week. Zora has the comparative advantage in quilts and the absolute advantage in neither good, while Lou has the comparative advantage in corporate websites and the absolute advantage in both goods.

Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. -Refer to Table 3-5. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Spain. If we were to do this, measuring cheese along the horizontal axis, then

Figure 3-3 -Refer to Figure 3-3. If Arturo and Dina each divides his/her time equally between the production of tacos and burritos, then total production is

Table 3-11 Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate. -Refer to Table 3-11. Falda has an absolute advantage in the production of

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

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then

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 should specialize in the production of

The production possibilities frontier illustrates

Figure 3-4 -Refer to Figure 3-4. If the production possibilities frontier shown for Perry is for 6 months of writing, then how long does it take Perry to write one poem?

Figure 3-3 -Refer to Figure 3-3. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of tacos and burritos could Arturo and Dina together not produce in a given day?

Figure 3-3 -Refer to Figure 3-3. Which of the following is not correct?

Figure 3-3 -Refer to Figure 3-3. Arturo's opportunity cost of one burrito is

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. We could use the information in the table to draw a production possibilities frontier for Maya and a second production possibilities frontier for Miguel. If we were to do this, measuring mixers along the horizontal axis, then

A certain cowboy spends 10 hours per day mending fences and herding cattle. For the cowboy, a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day) is called his