Exam 3: Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Figure 3-22 Alice and Betty's Production Possibilities in one 8-hour day. Alice's Production Possibilities Frontier Betty's Production Possibilities Frontier -Refer to Figure 3-22.What are Alice and Betty's opportunity costs of 1 pitcher of lemonade?

Total output in an economy increases when each person specializes because

Figure 3-21 Uzbekistan's Production Possibilities Frontier Azerbaijan's Production Possibilities Frontier -Refer to Figure 3-21.If Uzbekistan and Azerbaijan each spends all its time producing the good in which it has a comparative advantage and trade takes place at a price of 12 bolts for 36 nails,then

Figure 3-23 The graph below represents the various combinations of ham and cheese (in pounds)that the nation of Bonovia could produce in a given month. -Refer to Figure 3-23.For Bonovia,what is the opportunity cost of a pound of cheese?

Which of the following is not correct?

Figure 3-15 Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier -Refer to Figure 3-15.The opportunity cost of 1 poem for Jordan is

Two individuals engage in the same two productive activities.In which of the following circumstances would neither individual have a comparative advantage in either activity?

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14.Without trade,Arturo produced and consumed 240 tacos and 120 burritos and Dina produced and consumed 100 tacos and 150 burritos.Then,each person agreed to specialize in the production of the good in which they have a comparative advantage and trade 260 tacos for 156 burritos.As a result,Arturo gained

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19.Chile has an absolute advantage in the production of

Ken and Traci are two woodworkers who both make tables and chairs.In one month,Ken can make 3 tables or 18 chairs,whereas Traci can make 8 tables or 24 chairs.Given this,we know that the opportunity cost of 1 table is

Figure 3-22 Alice and Betty's Production Possibilities in one 8-hour day. Alice's Production Possibilities Frontier Betty's Production Possibilities Frontier -Refer to Figure 3-22.Which of the following statements is correct regarding comparative advantage?

Figure 3-24 The production possibilities frontiers below show how much Bob and Betty can each produce in 8 hours of time. -Refer to Figure 3-24.Betty has

Figure 3-13 Peru's Production Possibilities Frontier -Refer to Figure 3-13.Suppose Peru decides to increase its production of emeralds by 2.What is the opportunity cost of this decision?

Figure 3-15 Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier -Refer to Figure 3-15.The opportunity cost of 1 novel for Perry is

Figure 3-18 Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier -Refer to Figure 3-18.The opportunity cost of 1 bowl for Bintu is

Figure 3-21 Uzbekistan's Production Possibilities Frontier Azerbaijan's Production Possibilities Frontier -Refer to Figure 3-21.Azerbaijan has an absolute advantage in the production of

The producer that requires a smaller quantity of inputs to produce a certain amount of a good,relative to the quantities of inputs required by other producers to produce the same amount of that good,

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16.Hosne should specialize in the production of

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14.Arturo should specialize in the production of

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn,then