Exam 3: Interdependence and the Gains From Trade

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Figure 3-4 Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier Figure 3-4 Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier    -Refer to Figure 3-4. If the production possibilities frontier shown for Lisa is for 4 months of work, then how long does it take Lisa to produce one jacket? -Refer to Figure 3-4. If the production possibilities frontier shown for Lisa is for 4 months of work, then how long does it take Lisa to produce one jacket?

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A

Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce either 2 radios or 4 televisions per year. Each nation has 100 workers. Also suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each year, then each country's maximum consumption of new radios and televisions per year will be

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B

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

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D

Economists use the term to refer to the ability to produce a good using fewer inputs than another producer.

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Table 3-31 Table 3-31    -Refer to Table 3-31. For the farmer, the opportunity cost of 1 pound of potatoes is -Refer to Table 3-31. For the farmer, the opportunity cost of 1 pound of potatoes is

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Table 3-15 Table 3-15    -Refer to Table 3-15. Which of the following combinations of meat and potatoes could the farmer produce in 40 hours? -Refer to Table 3-15. Which of the following combinations of meat and potatoes could the farmer produce in 40 hours?

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Table 3-12 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. Table 3-12 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 3-12. Which of the following points would not be on Jim's production possibilities frontier, based on a 40-hour week? -Refer to Table 3-12. Which of the following points would not be on Jim's production possibilities frontier, based on a 40-hour week?

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Table 3-3 Production Opportunities Table 3-3 Production Opportunities    -Refer to Table 3-3. Assume that England and France each has 40 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is -Refer to Table 3-3. Assume that England and France each has 40 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is

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Table 3-31 Table 3-31    -Refer to Table 3-31. For the farmer, 12.8 pounds of -Refer to Table 3-31. For the farmer, 12.8 pounds of

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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?

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If Korea is capable of producing either shoes or soccer balls or some combination of the two, then

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

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Figure 3-21 Uzbekistan's Production Possibilities Frontier Azerbaijan's Production Possibilities Frontier Figure 3-21 Uzbekistan's Production Possibilities Frontier Azerbaijan's Production Possibilities Frontier   -Refer to Figure 3-21. Suppose Azerbaijan is willing to trade 3 nails to Uzbekistan for every bolt that Uzbekistan makes and sends to Azerbaijan. Which of the following combinations of bolts and nails could Uzbekistan then consume, assuming Uzbekistan specializes in making bolts and Azerbaijan specializes in making nails? -Refer to Figure 3-21. Suppose Azerbaijan is willing to trade 3 nails to Uzbekistan for every bolt that Uzbekistan makes and sends to Azerbaijan. Which of the following combinations of bolts and nails could Uzbekistan then consume, assuming Uzbekistan specializes in making bolts and Azerbaijan specializes in making nails?

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Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Sylvania will now be able to consume a maximum of

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Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier    -Refer to Figure 3-14. Arturo's opportunity cost of one burrito is -Refer to Figure 3-14. Arturo's opportunity cost of one burrito is

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Consider two individuals - Howard and Mai - each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases?

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Table 3-29 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. Table 3-29 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 3-29. Juanita has an absolute advantage in -Refer to Table 3-29. Juanita has an absolute advantage in

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Table 3-24 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Table 3-24 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.    -Refer to Table 3-24. England has a comparative advantage in the production of -Refer to Table 3-24. England has a comparative advantage in the production of

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Figure 3-7 Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier Figure 3-7 Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier   -Refer to Figure 3-7. If Bintu and Juba each divides her time equally between making bowls and making cups, then total production is -Refer to Figure 3-7. If Bintu and Juba each divides her time equally between making bowls and making cups, then total production is

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Figure 3-6 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier Figure 3-6 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier    -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? -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?

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