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

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.Aruba should specialize in the production of

Figure 3-9 -Refer to Figure 3-9.If Uzbekistan and Azerbaijan each spends all its time producing the good in which it has a comparative advantage and trade takes place at a price of 12 bolts for 36 nails,then

Figure 3-7 -Refer to Figure 3-7.If the production possibilities frontiers shown are each for 4 hours of work,then which of the following combinations of bowls and cups could Bintu and Juba together not make in a given 4-hour production period?

Figure 3-8 -Refer to Figure 3-8.Chile has an absolute advantage in the production of

In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine?

What must be given up to obtain an item is called

Figure 3-9 -Refer to Figure 3-9.If the production possibilities frontiers shown are each for two days of production,then which of the following combinations of bolts and nails could Uzbekistan and Azerbaijan together make in a given 2-day production period?

The principle of comparative advantage does not provide answers to certain questions.One of those questions is

If he devotes all of his available resources to cantaloupe production,a farmer can produce 120 cantaloupes.If he sacrifices 1.5 watermelons for each cantaloupe that he produces,it follows that

If one producer has the absolute advantage in the production of all goods,then that same producer will have the comparative advantage in the production of all goods as well.

By definition,exports are

Total output in an economy increases when each person specializes because

Which of the following is not an example of the principle that trade can make everyone better off?

Figure 3-3 -Refer to Figure 3-3.If Arturo and Dina both spend all of their time producing tacos,then total production is

A production possibilities frontier is a straight line when

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's opportunity cost of one car is

Table 3-12 -Refer to Table 3-12.Assume that the farmer and the rancher each has 40 labor hours available.If each person divides his time equally between the production of meat and potatoes,then total production is

Table 3-12 -Refer to Table 3-1.For the rancher,the opportunity cost of 1 pound of meat is

Figure 3-5 -Refer to Figure 3-5.If Hosne and Merve both spend all of their time making wallets,then total production is