Exam 3: Interdependence and the Gains From Trade

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

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

Two countries can achieve gains from trade even if one country has an absolute advantage in the production of both goods.

Figure 3-7 -Refer to Figure 3-7.If the production possibilities frontier shown for Juba is for 2 hours of work,then how long does it take Juba to make one bowl?

By definition,imports are

A farmer has the ability to grow either corn or cotton or some combination of the two.Given no other information,it follows that the farmer's opportunity cost of a bushel of corn multiplied by his opportunity cost of a bushel of cotton

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 60 minutes available.If each person spends all his time producing the good in which he has a comparative advantage,then total production is

Trade allows a country to consume outside its production possibilities frontier.

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.What is Zardia's opportunity cost of producing one bushel of wheat?

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2.Suppose Madagascar is willing to trade 40 rubies to Peru for each emerald that Peru produces and sends to Madagascar.Which of the following combinations of emeralds and rubies could Peru then consume,assuming Peru specializes in emerald production?

Table 3-12 -Refer to Table 3-1.In 10 hours,

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.Which of the following combinations of toothbrushes and hairbrushes could Zimbabwe not produce in 120 minutes?

Figure 3-4 -Refer to Figure 3-4.Perry has an absolute advantage in the production of

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.The opportunity cost of 1 unit of cheese for England is

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.Juanita's opportunity cost of programming one cellular phone is testing

If US workers can produce everything in less time than Mexican workers,it is not possible for the US to gain from trade with Mexico.

An economy's production possibilities frontier is also its consumption possibilities frontier

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 potatoes for the rancher is

Which of the following statements about comparative advantage is not true?

A country that currently does not trade with other countries could benefit by