Exam 3: Interdependence and the Gains From Trade

For two individuals who engage in the same two productive activities, it is impossible for one of the two individuals to

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. Maya has an absolute advantage in the production of

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. Huang has an absolute advantage in the production of

Table 3-18 Chris and Tony's Production Opportunities -Which of the following is not correct?

Figure 3-5 -Refer to Figure 3-5. Hosne has an absolute advantage in the production of

In an economy consisting of two people producing two goods, it is possible for one person to have the absolute advantage and the comparative advantage in both goods.

Table 3-18 Chris and Tony's Production Opportunities -Suppose that a worker in Boatland can produce either 5 units of wheat or 25 units of fish per year, and a worker in Farmland can produce either 25 units of wheat or 5 units of fish per year. There are 30 workers in each country. No trade occurs between the two countries. Boatland produces and consumes 75 units of wheat and 375 units of fish per year while Farmland produces and consumes 375 units of wheat and 75 units of fish per year. If trade were to occur, Boatland would trade 90 units of fish to Farmland in exchange for 80 units of wheat. If Boatland now completely specializes in fish production, how many units of fish could it now consume along with the 80 units of imported wheat?

In one month, Moira can knit 2 sweaters or 4 scarves. In one month, Tori can knit 1 sweater or 3 scarves. Moira's opportunity cost of knitting scarves is lower than Tori's opportunity cost of knitting scarves.

Suppose there are only two people in the world. Each person's production possibilities frontier also represents his or her consumption possibilities when

Interdependence among individuals and interdependence among nations are both based on the gains from trade.

Table 3-17 US and French Production Opportunities -Refer to Table 3-17 The US has a comparative advantage in the production of

Figure 3-6 -Refer to Figure 3-6. If Maxine and Daisy each divides her time equally between making pies and making tarts, then total production is

Figure 3-8 -Refer to Figure 3-8. Chile has an absolute advantage in the production of

Table 3-16 Summary of the Gains from Trade -Refer to Table 3-16. The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade. What are Alice and Betty's gains from specialization and trade?

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. Portugal has an absolute advantage in the production of

A certain cowboy spends 10 hours per day mending fences and herding cattle. For the cowboy, a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day) is called his

Figure 3-7 -Refer to Figure 3-7. If Bintu and Juba switch from each person dividing her time equally between the production of cups and bowls to each person spending all of her time producing the good in which she has a comparative advantage, then total production will increase by

Figure 3-6 -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?

Which of the following is not an example of the principle that trade can make everyone better off?

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 Andia's opportunity cost of producing one pound of beef?