Exam 3: Interdependence and the Gains From Trade

Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible?

The most obvious benefit of specialization and trade is that they allow us to

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. Which of the following combinations of wheat and beef could Andia produce in one 8-hour day?

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. Japan has an absolute advantage in the production of

Figure 3-5 -Refer to Figure 3-5. Hosne has a comparative advantage in the production of

Figure 3-3 -Refer to Figure 3-3. If Arturo and Dina each divides his/her time equally between the production of tacos and burritos, then total production is

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. At which of the following prices would both Huang and Min gain from trade with each other?

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 bushel of wheat?

Table 3-12 -Refer to Table 3-12. Which of the following combinations of meat and potatoes could the rancher not produce in 40 hours?

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. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Spain. If we were to do this, measuring bread along the horizontal axis, then

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. Which of the following combinations of toothbrushes and hairbrushes could Portugal produce in 30 minutes?

Table 3-12 -Refer to Table 3-1. For the farmer, 12.8 pounds of

As a student, Anne spends 40 hours per week writing term papers and completing homework assignments. On one axis of her production possibilities frontier is measured the number of term papers written per week. On the other axis is measured the number of homework assignments completed per week. Anne's production possibilities frontier is a straight line if

Figure 3-3 -Refer to Figure 3-3. Arturo's opportunity cost of one burrito is

Figure 3-4 -Refer to Figure 3-4. If Perry and Jordan each divides their time equally between writing novels and writing poems, then total production 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. Iceland should export

Adam Smith was the author of the 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations.

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10. If point A represents Alice's current production and point B represents Betty's current production, under what circumstances can both Alice and Betty benefit from specialization and trade?

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 Spain is

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. Which of the following combinations of cheese and bread could Spain produce in 40 hours?