Exam 3: Interdependence and the Gains From Trade

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

Figure 3-4 -Refer to Figure 3-4.If Perry and Jordan both spend all of their time writing poems,then total production is

Figure 3-8 -Refer to Figure 3-8.Chile's opportunity cost of one pound of coffee is

Tom Brady should probably not mow his own lawn because

Figure 3-5 -Refer to Figure 3-5.If Hosne must work 0.5 hour to make each purse,then her production possibilities frontier is based on how many hours of work?

In one month,Moira can knit 2 sweaters or 4 scarves.In one month,Tori can knit 1 sweater or 3 scarves.Together,they could produce more output in total if Moira knits only sweaters and Tori knits only scarves.

Figure 3-3 -Refer to Figure 3-3.Arturo and Dina would not be able to gain from trade if Dina's opportunity cost of one taco changed to

If labor in Mexico is less productive than labor in the United States in all areas of production,

Harry is a computer company executive,earning $200 per hour managing the company and promoting its products.His daughter Quinn is a high school student,earning $6 per hour helping her grandmother on the farm.Harry's computer is broken.He can repair it himself in one hour.Quinn can repair it in 10 hours.Harry's opportunity cost of repairing the computer is lower than Quinn's.

Figure 3-8 -Refer to Figure 3-8.If Chile and Colombia switch from each country dividing its time equally between the production of coffee and soybeans to each country spending all of its time producing the good in which it has a comparative advantage,then total production of soybeans will increase by

Figure 3-9 -Refer to Figure 3-9.Azerbaijan should specialize in the production of

Table 3-3 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-3.Zimbabwe and Portugal would not be able to gain from trade if Zimbabwe's opportunity cost of one toothbrush changed to

Henry can make a bird house in 3 hours and he can make a bird feeder in 1 hour.The opportunity cost to Henry of making a bird house is 1/3 bird feeder.

Assume a farmer has the ability to produce corn and/or beans.Whenever the farmer spends 1 hour less producing corn and 1 hour more producing beans,he reduces his output of corn by 2 bushels and raises his output of beans by 3 bushels.In view of these assumptions,the farmer's production possibilities frontier is bowed out.

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10.Which of the following prices would result in an mutually advantageous trade for Alice and Betty?

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.The opportunity cost of 1 mixer for Miguel is

The opportunity cost of an item is

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 England not produce in 40 hours?

Figure 3-8 -Refer to Figure 3-8.Colombia would incur an opportunity cost of 24 pounds of coffee if it increased its production of soybeans by

When describing the opportunity cost of two producers,economists use the term