Exam 3: Interdependence and the Gains From Trade

Figure 3-8 -Refer to Figure 3-8. Colombia would incur an opportunity cost of 24 pounds of coffee if it increased its production of soybeans by

Figure 3-6 -Refer to Figure 3-6. Suppose Daisy decides to increase her production of pies by 6. What is the opportunity cost of this decision?

Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage.

Figure 3-9 -Refer to Figure 3-9. If Uzbekistan and Azerbaijan switch from each country dividing its time equally between the production of bolts and nails to each country spending all of its time producing the good in which it has a comparative advantage, then total production will increase by

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 Maya produce in 40 hours?

Figure 3-5 -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 3-6 -Refer to Figure 3-6. At which of the following prices would both Maxine and Daisy gain from trade with each other?

Figure 3-1 -Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches is constant in

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 yard of cloth is

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

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2. If the production possibilities frontier shown is for one month of production, then which of the following combinations of emeralds and rubies could Peru not produce in a given month?

Comparative advantage is related most closely to which of the following?

Figure 3-4 -Refer to Figure 3-4. If Perry and Jordan both spend all of their time writing poems, then total production is

Figure 3-4 -Refer to Figure 3-4. Perry has an absolute advantage in the production of

Figure 3-4 -Refer to Figure 3-4. If Perry and Jordan each spends all of his/her time producing the good in which s/he has a comparative advantage and trade takes place at a price of 1 novel for 7 poems, then

Ben bakes bread and Shawna knits sweaters. Ben and Shawna both like to eat bread and wear sweaters. In which of the following cases is it impossible for both Ben and Shawna to benefit from trade?

Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases, but Regan is better at producing both goods. In this case, trade could

Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. -Refer to Table 3-5. England should export

Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. -Refer to Table 3-5. The opportunity cost of 1 unit of bread for England is

Figure 3-8 -Refer to Figure 3-8. Chile would incur an opportunity cost of 36 pounds of coffee if it increased its production of soybeans by