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

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14.At which of the following prices would both Arturo and Dina gain from trade with each other?

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16.If Hosne and Merve switch from each person dividing her time equally between the production of purses and wallets to each person spending all of her time producing the good in which she has a comparative advantage,then total production of purses will increase by

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

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

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

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.The nation of Cropitia has a comparative advantage over Bonovia in producing ham if

The opportunity cost of an item is

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19.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

Assume for the United States that the opportunity cost of each airplane is 50 cars.Which of these pairs of points could be on the United States' production possibilities frontier?

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16.Hosne has an absolute advantage in the production of

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19.Chile's opportunity cost of one pound of coffee is

Kelly and David are both capable of repairing cars and cooking meals.Which of the following scenarios is not possible?

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 Jordan 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 Juba is

What must be given up to obtain an item is called

Figure 3-13 Peru's Production Possibilities Frontier -Refer to Figure 3-13.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?

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 absolute advantage?

Absolute advantage is found by comparing different producers'

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14.Arturo has an absolute advantage in the production of

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