Exam 3: Interdependence and the Gains From Trade

The gains from trade are

Suppose Jim and Tom can both produce baseball bats. If Jim's opportunity cost of producing baseball bats is lower than Tom's opportunity cost of producing baseball bats, then

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2. If the production possibilities frontier shown is for 40 hours of production, then how long does it take Peru to make one emerald?

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. Assume that Huang and Min each has 36 labor hours available. If each person divides his/her time equally between the production of parasols and plates, then total production is

Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, while Sandy can make 6 tables or 18 chairs. Given this, we know that

Table 3-18 Chris and Tony's Production Opportunities -Tom Brady should pay someone else to mow his lawn instead of mowing it himself, unless

Figure 3-3 -Refer to Figure 3-3. 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 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2. If the production possibilities frontier shown is for 40 hours of production, then how long does it take Peru to make one ruby?

Table 3-3 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-3. Assume that Zimbabwe and Portugal each has 180 machine minutes available. If each country divides its time equally between the production of toothbrushes and hairbrushes, then total production is

Which of the following is not correct?

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. Falda's opportunity cost of one bushel of wheat is

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?

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. Which of the following points would not be on Huang's production possibilities frontier, based on a 36-hour production period?

Table 3-18 Chris and Tony's Production Opportunities -Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to trade,

Table 3-10 Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies. -Refer to Table 3-10. Juanita's opportunity cost of programming one cellular phone is testing

Table 3-18 Chris and Tony's Production Opportunities -Adam Smith

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. The opportunity cost of 1 toaster for Miguel is

Assume for Namibia that the opportunity cost of each hut is 200 bowls. Which of these pairs of points could be on Namibia's production possibilities frontier?

Suppose a gardener produces both green beans and corn in her garden. If the opportunity cost of one bushel of corn is 3/5 bushel of green beans, then the opportunity cost of 1 bushel of green beans is

Table 3-18 Chris and Tony's Production Opportunities -Economists generally support