Exam 3: Interdependence and the Gains From Trade

Suppose that a worker in Radioland can produce either 4 radios or 1 television per year and a worker in Teeveeland can produce either 2 radios or 5 televisions per year.Each nation has 100 workers,and each country specializes according to the principle of comparative advantage.If Radioland trades 100 televisions to Teeveeland in exchange for 100 radios each year,then each country's maximum consumption of new radios and televisions per year will be

Figure 3-9 -Refer to Figure 3-9.Azerbaijan's opportunity cost of one bolt is

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

Which of the following is not a reason people choose to depend on others for goods and services?

Table 3-12 -Refer to Table 3-1.For the farmer,the opportunity cost of 15 pounds of meat is

Figure 3-7 -Refer to Figure 3-7.If Bintu must work 2 hours to make each cup,then her production possibilities frontier is based on how many hours of work?

Table 3-1 Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-1.Which of the following combinations of wheat and beef could Zardia not produce in one 10-hour day?

Figure 3-6 -Refer to Figure 3-6.If Daisy must work 2.5 hours to make each pie,then her production possibilities frontier is based on how many hours of work?

Table 3-1 Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-1.Andia should specialize in the production of

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 has an absolute advantage in the production of

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

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.

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 opportunity cost of 1 pound of meat for the rancher is

Table 3-13 The following table contains some production possibilities for an economy for a given month. -Refer to Table 3-13.If the production possibilities frontier is bowed outward,then "?" could be

Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year,and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year.Each nation has 10 workers.Without trade,Freedonia produces and consumes 30 units of corn and 10 units of wheat per year.Sylvania produces and consumes 10 units of corn and 30 units of wheat.Suppose that trade is then initiated between the two countries,and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat.Sylvania will now be able to consume a maximum of

Table 3-10 Juanita and Shantala run a business that programs and tests cellular phones.Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate.The following table applies. -Refer to Table 3-10.Which of the following points would be on Juanita's production possibilities frontier,based on a 40-hour week?

Table 3-1 Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-1.At which of the following prices would both Andia and Zardia gain from trade with each other?

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2.The fact that the line slopes downward reflects the fact that

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