Exam 3: Interdependence and the Gains From Trade

Figure 3-9 -Refer to Figure 3-9. If the production possibilities frontiers shown are each for two days of production, then which of the following combinations of bolts and nails could Uzbekistan and Azerbaijan together not make in a given 2-day production period?

Figure 3-7 -Refer to Figure 3-7. The opportunity cost of 1 bowl for Juba is

Table 3-2 Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. -Refer to Table 3-2. Aruba has an absolute advantage in the production of

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

Table 3-18 Chris and Tony's Production Opportunities -Refer to Table 3-18 Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. Which of the following prices would result in a mutually advantageous trade between Chris and Tony?

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10. Both Alice and Betty

Table 3-7 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. -Refer to Table 3-7. Korea should specialize in the production of

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. If England and Spain each spends all its time producing the good in which it has a comparative advantage and the countries agree to trade 2 units of bread for 6 units of cheese, then England will consume

Figure 3-8 -Refer to Figure 3-8. At which of the following prices would both Chile and Colombia gain from trade with each other?

David Ricardo was the author of the 1817 book Principles of Political Economy and Taxation.

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. Shantala has an absolute advantage in

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 parasol for Huang is

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then

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's opportunity cost of setting up one computer is testing

Table 3-4 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. -Refer to Table 3-4. The opportunity cost of 1 pound of meat for the farmer is

Henry can make a bird house in 3 hours and he can make a bird feeder in 1 hour. The opportunity cost to Henry of making a bird house is 1/3 bird feeder.

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. Andia has an absolute advantage in the production of

If labor in Mexico is less productive than labor in the United States in all areas of production,

Absolute advantage is found by comparing different producers'

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