Exam 3: Interdependence and the Gains From Trade

Suppose a gardener produces both green beans and corn in her garden. If she must give up 13 bushels of corn to get 5 bushels of green beans, what is the opportunity cost of 1 bushel of green beans?

Trade can benefit society as a whole because it allows for each of the following EXCEPT:

Trade allows a country to consume outside its production possibilities frontier.

Table 3-3 -Refer to Table 3-3. What is the opportunity cost of 1 quilt for Helen?

Which of the following is NOT true concerning comparative advantage?

Table 3-6 -Refer to Table 3-6. Which of the following is correct?

A rancher can produce only hamburgers, while a farmer can produce only French fries. If the rancher and the farmer like both foods, which of the following is most likely?

Figure 3-6 -Refer to Figure 3-6. Which of the following is correct?

Table 3-3 -Refer to Table 3-3. What is the opportunity cost of 1 dress for Helen?

Table 3-2 -Refer to Table 3-2. How could the Farmer and Rancher both benefit?

Figure 3-2 -Refer to Figure 3-2. What is the opportunity cost of 1 bushel of wheat for Cliff?

If labour in Mexico is less productive than labour in the United States in all areas of production, which of the following is correct?

Table 3-5 -Refer to Table 3-5. Which of the following is correct?

Using all available resources, if a farmer can produce either 85 cantaloupes or 70 watermelons, what is the opportunity cost of 1 cantaloupe to the farmer?

Figure 3-1 -Refer to Figure 3-1. Assume that Cliff and Paul were both producing wheat and corn, and each was dividing their time equally between the two. Then they decide to specialize in the product they have a comparative advantage in. What would happen to the total production of corn?

Figure 3-2 -Refer to Figure 3-2. Which of the following is true for Cliff and Paul?

Table 3-3 -Refer to Table 3-3. Which of the following is correct?

Figure 3-6 -Refer to Figure 3-6. If Barney and Betty both specialize in the good in which they have a comparative advantage, what would the total production be?

Table 3-1 -Refer to Table 3-1. Which of the following is correct?

Table 3-1 -Refer to Table 3-1. Which of the following is correct?