Question 1

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 cheese for England is

Accepted Answer

A)  1/4 unit of bread. 
B)  1 hour of labor. 
C)  4 units of bread. 
D)  4 hours of labor.

Question 2

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.The opportunity cost of 1 toaster for Maya is

Accepted Answer

A)  0.625 mixers. 
B)  1.6 hours of labor. 
C)  1.6 mixers. 
D)  8 hours of labor.

Question 3

Figure 3-11
The graph below represents the various combinations of ham and cheese (in pounds)that the nation of Bonovia could produce in a given month. 
-Refer to Figure 3-11.If the production possibilities frontier shown is for 240 hours of production,then how long does it take Bonovia to make one pound of cheese?

Accepted Answer

A)  3/5 hour 
B)  3/4 hour 
C)  4/3 hours 
D)  5/3 hours

Exam 3: Interdependence and the Gains From 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 cheese for England is

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.The opportunity cost of 1 toaster for Maya is