Exam 3: Interdependence and the Gains From Trade

A production possibilities frontier is bowed outward when

Table 3-8 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. -Refer to Table 3-8.At which of the following prices would both Huang and Min gain from trade with each other?

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 make in a given 4-hour production period?

Figure 3-4 -Refer to Figure 3-4.If Perry and Jordan each divides their time equally between writing novels and writing poems,then total production is

For a country producing two goods,the opportunity cost of one good will be the inverse of the opportunity cost of the other good.

Figure 3-9 -Refer to Figure 3-9.If Uzbekistan and Azerbaijan each divides its time equally between making bolts and making nails,then total production is

Trade allows a person to obtain goods at prices that are less than that person's opportunity cost because each person specializes in the activity for which he or she has the lower opportunity cost.

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 toasters along the horizontal axis,then

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.Which of the following combinations of meat and potatoes could the farmer produce in 24 hours?

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.At which of the following prices would both England and Spain gain from trade with each other?

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.If England and Spain each spends all its time producing the good in which it has a comparative advantage and the countries agree to trade 2 units of bread for 6 units of cheese,then England will consume

Which of the following would not result from all countries specializing according to the principle of comparative advantage?

Figure 3-6 -Refer to Figure 3-6.Maxine has an absolute advantage in the production of

Adam Smith developed the theory of comparative advantage as we know it today.

Table 3-17 US and French Production Opportunities -Refer to Table 3-17 France has an absolute advantage in the production of

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 4 televisions per year.Each nation has 100 workers.Also suppose that each country completely specializes in producing the good in which it has a comparative advantage.If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each year,then each country's maximum consumption of new radios and televisions per year will be

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.Iceland should export

Figure 3-8 -Refer to Figure 3-8.At which of the following prices would both Chile and Colombia gain from trade with each other?

For two individuals who engage in the same two productive activities,it is impossible for one of the two individuals to

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