Exam 3: Interdependence and the Gains From Trade

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

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

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2.If the production possibilities frontier shown is for one month of production,then which of the following combinations of emeralds and rubies could Peru produce in a given month?

Which of the following is not correct?

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.Which of the following combinations of cheese and bread could Spain produce in 40 hours?

Table 3-16 Summary of the Gains from Trade -Refer to Table 3-16.The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade.What are Alice and Betty's gains from specialization and trade?

Tom Brady should pay someone else to mow his lawn instead of mowing it himself,unless

Table 3-12 -Refer to Table 3-1.Relative to the rancher,the farmer has

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 has an absolute advantage in the production of

Some countries win in international trade,while other countries lose.

Figure 3-9 -Refer to Figure 3-9.Azerbaijan has an absolute advantage in the production of

When an economist points out that you and millions of other people are interdependent,he or she is referring to the fact that we all

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.If each country divides its time equally between the production of cars and airplanes,then total production is

Travis can mow a lawn in two hours or he can trim a tree in one hour.Ricardo can mow a lawn in three hours or he can trim a tree in two hours.

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,then total production is

If a country has the comparative advantage in producing a product,then that country must also have the absolute advantage in producing that product.

Both Bill and Mary produce t-shirts and hats.If Bill's opportunity cost of 1 t-shirt is 4 hats and Mary's opportunity cost of 1 t-shirt is 3 hats,then

Consider two individuals - Howard and Mai - each of whom would like to wear sweaters and eat tasty food.The gains from trade between Howard and Mai are least obvious in which of the following cases?

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

Figure 3-11 The graph below represents the various combinations of ham and cheese (in pounds)that the nation of Bonovia could produce in a given month. -Refer to Figure 3-11.If the production possibilities frontier shown is for 240 hours of production,then which of the following combinations of ham and cheese could Bonovia produce in 240 hours?