Exam 3: Interdependence and the Gains From Trade

Trade between countries

Ellie and Brendan both produce apple pies and vanilla ice cream.If Ellie's opportunity cost of one apple pie is 1/2 gallon of ice cream and Brendan's opportunity cost of one apple pie is 1/4 gallon of ice cream,Ellie has a comparative advantage in the production of ice cream.

Goods produced abroad and sold domestically are called

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.Which of the following points would not be on Huang's production possibilities frontier,based on a 36-hour production period?

Canada and the U.S.both produce wheat and computer software.Canada is said to have the comparative advantage in producing wheat if

Figure 3-3 -Refer to Figure 3-3.If Arturo and Dina each divides his/her time equally between the production of tacos and burritos,then total production is

Figure 3-7 -Refer to Figure 3-7.The opportunity cost of 1 cup for Bintu is

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

Suppose a gardener produces both green beans and corn in her garden.If the opportunity cost of one bushel of corn is 3/5 bushel of green beans,then the opportunity cost of 1 bushel of green beans is

Table 3-11 Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate. -Refer to Table 3-11.Falda has a comparative advantage in the production of

Table 3-17 US and French Production Opportunities -Refer to Table 3-17 The opportunity costs for the US and France are as follows:

Figure 3-4 -Refer to Figure 3-4.Perry should specialize in the production of

David Ricardo was the author of the 1817 book Principles of Political Economy and Taxation.

Figure 3-5 -Refer to Figure 3-5.If Hosne and Merve each divides her time equally between making purses and making wallets,then total production is

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

Figure 3-5 -Refer to Figure 3-5.If the production possibilities frontier shown for Merve is for 8 hours of work,then how long does it take Merve to make one purse?

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.Assume that Andia and Zardia each has 360 minutes available.If each person divides his time equally between the production of wheat and beef,then total production is

Pocoyo bakes cookies and Pato grows vegetables.In which of the following cases is it impossible for both Pocoyo and Pato to benefit from trade?

If Shawn can produce more donuts in one day than Sue can produce in one day,then

Adam Smith