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

Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day,and a worker in Felinia can produce either 5 blankets or 1 meal per day.Each nation has 10 workers.For many years,the two countries traded,each completely specializing according to their respective comparative advantages.Now war has broken out between them and all trade has stopped.Without trade,Caninia produces and consumes 10 blankets and 40 meals per day and Felinia produces and consumes 25 blankets and 5 meals per day.The war has caused the combined daily output of the two countries to decline by

Figure 3-20 Canada's Production Possibilities Frontier Mexico's Production Possibilities Frontier -Refer to Figure 3-20.Canada's opportunity cost of one unit of Good Y is

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19.Chile would incur an opportunity cost of 36 pounds of coffee if it increased its production of soybeans by

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14.If Arturo and Dina switch from each person dividing their time equally between the production of tacos and burritos to each person spending all of their time producing the good in which they have a comparative advantage,then total production of burritos will increase by

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14.Arturo and Dina would not be able to gain from trade if Dina's opportunity cost of one taco changed to

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16.At which of the following prices would both Hosne and Merve gain from trade with each other?

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.In the nation of Cropitia,the opportunity cost of a pound of cheese is 1.5 pounds of ham.Bonovia and Cropitia both can gain from trading with one another if one pound of cheese trades for

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

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16.Hosne's opportunity cost of one purse is

Trade can make everybody better off because it

Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks.Which of the following is not possible?

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 Juba 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.Whenever Bonovia increases its production of ham by 1 pound per month,then it must decrease its production of cheese by

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

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

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14.Suppose Arturo is willing to trade 6 burritos to Dina for each 10 tacos that Dina produces and sends to Arturo.Which of the following combinations of tacos and burritos could Dina then consume,assuming Dina specializes in taco production and Arturo specializes in burrito production?

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19.At which of the following prices would both Chile and Colombia gain from trade with each other?

Suppose a gardener produces both tomatoes and squash in his garden.If he must give up 8 bushels of squash to get 5 bushels of tomatoes,then his opportunity cost of 1 bushel of tomatoes is

When each person specializes in producing the good in which he or she has a comparative advantage,total production in the economy

Figure 3-17 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier -Refer to Figure 3-17.Suppose Maxine decides to increase her production of tarts by 5.What is the opportunity cost of this decision?