Exam 3: Interdependence and the Gains From Trade: A Parable for the Modern Economy

Figure 3-6 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier -Refer to Figure 3-6.If the production possibilities frontiers shown are each for one day of work,then which of the following combinations of pies and tarts could Maxine and Daisy together not make in a given day?

The most obvious benefit of specialization and trade is that they allow us to

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

Figure 3-2 Brazil's Production Possibilities Frontier -Refer to Figure 3-2.If the production possibilities frontier shown is for two months of production,then which of the following combinations of peanuts and cashews could Brazil not produce in two months?

Which of the following is not a reason people choose to depend on others for goods and services?

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

As a student,Anne spends 40 hours per week writing term papers and completing homework assignments.On one axis of her production possibilities frontier is measured the number of term papers written per week.On the other axis is measured the number of homework assignments completed per week.Anne's production possibilities frontier is a straight line if

For a self-sufficient producer,the production possibilities frontier

Figure 3-3 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -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

A production possibilities frontier is bowed outward when

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 3-3 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-3.If Arturo and Dina both spend all of their time producing tacos,then total production is

A production possibilities frontier is a straight line when

Abby bakes brownies and Liam grows flowers.In which of the following cases is it impossible for both Abby and Liam to benefit from trade?

Figure 3-5 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-5.If Hosne must work 0.5 hour to make each purse,then her production possibilities frontier is based on how many hours of work?

Figure 3-4 Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier -Refer to Figure 3-4.If the production possibilities frontier shown for Lisa is for 4 months of work,then how long does it take Lisa to produce one jacket?

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. Alice's Production Possibilities Frontier Betty's Production Possibilities Frontier -Refer to Figure 3-10.If point A represents Alice's current production and point B represents Betty's current production,under what circumstances can both Alice and Betty benefit from specialization and trade?

Figure 3-4 Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier -Refer to Figure 3-4.If Lisa and Bryce each divides his or her time equally between producing jackets and producing sweaters,then total production is

Figure 3-3 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-3.If the production possibilities frontiers shown are each for one day of production,then which of the following combinations of tacos and burritos could Arturo and Dina together not produce in a given day?

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