Exam 3: Interdependence and the Gains From Trade

Figure 3-4 -Refer to Figure 3-4. Jordan should specialize in the production of

Table 3-6 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-6. Which of the following combinations of mixers and toasters could Miguel not produce in 90 hours?

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 3-8 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. -Refer to Table 3-8. Min has an absolute advantage in the production of

Figure 3-5 -Refer to Figure 3-5. Merve should specialize in the production of

Table 3-9 Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies. -Refer to Table 3-9. Barb has an absolute advantage in

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 pound of beef?

Table 3-6 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-6. Assume that Maya and Miguel each has 40 hours available. If each person divides his/her time equally between the production of mixers and toasters, then total production is

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

Trade can make everybody better off because it

Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix her meals? Explain.

Table 3-18 Chris and Tony's Production Opportunities -Trade between countries

Table 3-8 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. -Refer to Table 3-8. The opportunity cost of 1 plate for Huang is

Figure 3-9 -Refer to Figure 3-9. Suppose Azerbaijan is willing to trade 3 nails to Uzbekistan for every bolt that Uzbekistan makes and sends to Azerbaijan. Which of the following combinations of bolts and nails could Azerbaijan then consume, assuming Uzbekistan specializes in making bolts and Azerbaijan specializes in making nails?

Figure 3-5 -Refer to Figure 3-5. If the production possibilities frontier shown for Merve is for 8 hours of work, then how long does it take Merve to make one purse?

When each person specializes in producing the good in which he or she has a comparative advantage, each person can gain from trade but total production in the economy is unchanged.

Figure 3-8 -Refer to Figure 3-8. Colombia should specialize in the production of

When can two countries gain from trading two goods?

Table 3-12 -Refer to Table 3-12. Which of the following combinations of meat and potatoes could the farmer produce in 40 hours?

Table 3-11 Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate. -Refer to Table 3-11. Varick has an absolute advantage in the production of