Deck 3: Interdependence and the Gains From Trade

Question 1

Refer to Table 3-1. What does each producer have an absolute or comparative advantage in?

A) The rancher has an absolute advantage in both goods, and the farmer has a comparative advantage in meat.
B) The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in potatoes.
C) The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in neither good.
D) The rancher has an absolute advantage in both goods, and the farmer has a comparative advantage in potatoes.

Answer 1

The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in potatoes.

Question 2

Refer to Table 3-1. What is the opportunity cost of 1 kg of potatoes for the farmer?

A) 3 hours of labour
B) 9 hours of labour
C) 1/3 kg of meat
D) 3kg of meat

Answer 2

1/3 kg of meat

Question 3

Refer to Table 3-1. What is the opportunity cost of 1 kg of meat for the rancher?

A) 3/4 kg of potatoes
B) 4/3 kg of potatoes
C) 3 hours of labour
D) 4 hours of labour

Answer 3

3/4 kg of potatoes

Question 4

If there is trade, which of the following is most likely?

A) A country is worse off because it becomes dependent on other countries.
B) A country will produce a greater variety of goods and services to trade.
C) A country's consumption possibilities frontier can be outside its production possibilities frontier.
D) A country will experience a lower unemployment rate.

Question 5

Refer to Table 3-1. What does each producer have an absolute or comparative advantage in?

A) The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat.
B) The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes.
C) The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes.
D) The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat.

Question 6

Suppose labour in Belize is less productive than labour in Canada. What can we conclude from this information?

A) that neither nation can benefit from trade
B) that Belize can benefit from trade, but Canada cannot
C) that Belize will not have a comparative advantage in any good
D) that both nations can benefit from trade

Question 7

If there is no trade, which of the following is most likely?

A) A country is better off because it will become self-sufficient.
B) A country's production possibilities frontier is also its consumption possibilities frontier.
C) A country can still benefit from international specialization.
D) A country has more product variety available.

Question 8

A baker can produce only bread, while a butcher can produce only sliced deli meats. If the baker and the butcher like both foods, which of the following is most likely?

A) They cannot gain from trade.
B) They could gain from trade under certain circumstances, but not always.
C) They could gain from trade because each would enjoy a greater variety of food.
D) They could gain from trade only if each were indifferent between bread and sliced deli meats.

Question 9

What is the difference between production possibilities frontiers that are bowed out and those that are linear?

A) Bowed out production possibilities frontiers illustrate tradeoffs, whereas linear production possibilities frontiers do not.
B) Bowed out production possibilities frontiers show increasing opportunity cost, whereas linear ones show constant opportunity cost.
C) Bowed out production possibilities frontiers are the result of perfectly adaptable resources whereas linear production possibilities frontiers are not.
D) Bowed out production possibilities frontiers illustrate real world conditions less than linear production possibilities frontiers.

Question 10

When can a country's consumption possibilities frontier be outside its production possibilities frontier?

A) if additional resources become available
B) if there is an increase in the level of technology
C) if the country engages in trade
D) if resources are adaptable.

Question 11

Deb grows flowers and makes vases. D'Arcy also grows flowers and makes vases, but Deb is better at producing both. Who has an absolute or comparative advantage in what activity?

A) Deb has an absolute advantage in both activities.
B) D'Arcy has an absolute advantage in both activities.
C) Deb has a comparative advantage in growing flowers.
D) D'Arcy has a comparative advantage in growing flowers.

Question 12

Refer to Table 3-1. How could the farmer and rancher both benefit?

A) by the farmer specializing in meat and the rancher specializing in potatoes
B) by the farmer specializing in potatoes and the rancher specializing in meat
C) by the farmer specializing in neither good and the rancher specializing in both goods
D) by the farmer specializing in both goods and the rancher specializing in neither good

Question 13

Refer to Table 3-1. What does each producer have a comparative advantage in?

A) The rancher has a comparative advantage in neither good, and the farmer has a comparative advantage in both goods.
B) The rancher has a comparative advantage in both goods, and the farmer has a comparative advantage in neither good.
C) The rancher has a comparative advantage in meat, and the farmer has a comparative advantage in potatoes.
D) The rancher has a comparative advantage in potatoes, and the farmer has a comparative advantage in meat.

Question 14

Refer to Table 3-2. What is the opportunity cost of 1 kilogram of meat for the farmer?

A) 1/4 hour of labour
B) 1 hour of labour
C) 1/4 kilograms of potatoes
D) 4 kilogram of potatoes

Question 15

When will a production possibilities frontier be linear and not bowed out?

A) if no tradeoffs exist
B) if the tradeoff between the two goods is always at a constant rate
C) if unemployment is zero
D) if resources are allocated efficiently

Question 16

Refer to Table 3-1. What does each producer have an absolute advantage in?

A) The farmer has an absolute advantage in meat, and the rancher has an absolute advantage in potatoes.
B) The farmer has an absolute advantage in potatoes, and the rancher has an absolute advantage in meat.
C) The rancher has an absolute advantage in neither good, and the farmer has an absolute advantage in both goods.
D) The farmer has an absolute advantage in neither good, and the rancher has an absolute advantage in both goods.

Question 17

Refer to Table 3-1. What is the opportunity cost of 1 kg of potatoes for the rancher?

A) 3 hours of labour
B) 4 hours of labour
C) 3/4 kg of meat
D) 4/3kg of meat

Question 18

Which of the following is NOT an implication of our model of trade?

A) Trade allows for specialization.
B) Trade is good for nations.
C) Trade is based on absolute advantage.
D) Trade allows individuals to consume more than otherwise.

Question 19

Refer to Table 3-1. What is the opportunity cost of 1 kg of meat for the farmer?

A) 1/3 hour of labour
B) 3 hours of labour
C) 1/3 kg of potatoes
D) 3 kg of potatoes

Question 20

What is the best reason for people to provide you with goods and services?

A) They are acting out of generosity.
B) They are acting out of fairness.
C) They do so because they get something in return.
D) They are required to do so by the government.

Question 21

Figure 3-1
Refer to Figure 3-1. Assume that Cliff and Paul were both producing wheat and corn, and each was dividing their time equally between the two. Then they decide to specialize in the product they have a comparative advantage in and trade 3 bushels of wheat for 3 bushels of corn. What would Cliff now be able to consume?

A) 2 bushels of wheat and 3 bushels of corn
B) 3 bushels of wheat and 3 bushels of corn
C) 3 bushels of wheat and 4 bushels of corn
D) 4 bushels of wheat and 3 bushels of corn

Question 22

Figure 3-1
Refer to Figure 3-1. Assume that both Paul and Cliff divide their time equally between the production of corn and wheat, and they do not trade. If they were the only producers of corn and wheat, what would the total production of wheat and corn be?

A) 8 bushels of wheat and 7 bushels of corn
B) 7 bushels of wheat and 6 bushels of corn
C) 6 bushels of wheat and 8 bushels of corn
D) 7 bushels of wheat and 7 bushels of corn

Question 23

Refer to Table 3-2. What does each producer have an absolute or comparative advantage in?

A) The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat.
B) The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes.
C) The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat.
D) The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes.

Question 24

Figure 3-1
Refer to Figure 3-1. If Paul divides his time equally between corn and wheat, what will he be able to produce?

A) 2 bushels of wheat and 2 bushels of corn
B) 3 bushels of wheat and 3 bushels of corn
C) 4 bushels of wheat and 5 bushels of corn
D) 4 bushels of wheat and 6 bushels of corn

Question 25

Refer to Table 3-2. How could the farmer and rancher both benefit?

A) by the farmer specializing in meat and the rancher specializing in potatoes
B) by the farmer specializing in potatoes and the rancher specializing in meat
C) by the farmer specializing in neither good and the rancher specializing in both goods
D) by the farmer specializing in both goods and the rancher specializing in neither good

Question 26

Refer to Table 3-2. What is the opportunity cost of 1 kilogram of meat for the rancher?

A) 4 hours of labour
B) 6 hours of labour
C) 2/3 kilograms of potatoes
D) 3/2 kilogram of potatoes

Question 27

Refer to Table 3-2. What does each producer have a comparative advantage in?

A) The rancher has a comparative advantage in neither good, and the farmer has a comparative advantage in both goods.
B) The rancher has a comparative advantage in both goods, and the farmer has a comparative advantage in neither good.
C) The rancher has a comparative advantage in meat, and the farmer has a comparative advantage in potatoes.
D) The rancher has a comparative advantage in potatoes, and the farmer has a comparative advantage in meat.

Question 28

Figure 3-2
Refer to Figure 3-2. Assume that both Paul and Cliff divide their time equally between the production of corn and wheat, and they do not trade. If they were the only producers of corn and wheat, what would the total production of wheat and corn be?

A) 7 bushels of wheat and 8 bushels of corn
B) 8 bushels of wheat and 7 bushels of corn
C) 9 bushels of wheat and 6 bushels of corn
D) 18 bushels of wheat and 12 bushels of corn

Question 29

Figure 3-2
Refer to Figure 3-2. Assume that Cliff and Paul were both producing wheat and corn, and both were dividing their time equally between the two. Then they decide to specialize in the product for which they have a comparative advantage. What would happen to the production of corn?

A) It would increase by 1 bushel.
B) It would increase by 2 bushels.
C) It would increase by 3 bushels.
D) It would increase by 4 bushels.

Question 30

Refer to Table 3-2. What does each producer have an absolute advantage in?

A) The farmer has an absolute advantage in meat, and the rancher has an absolute advantage in potatoes.
B) The farmer has an absolute advantage in neither, and the rancher has an absolute advantage in meat.
C) The farmer has an absolute advantage in potatoes good, and the rancher has an absolute advantage in both goods.
D) The farmer has an absolute advantage in potatoes, and the rancher has an absolute advantage in neither good.

Question 31

Refer to Table 3-2. What is the opportunity cost of 1 kilogram of potatoes for the rancher?

A) 4 hours of labour
B) 5 hours of labour
C) 2-3 pounds of meat
D) 3/2 pound of meat

Question 32

Refer to Table 3-2. What is the opportunity cost of 1 kilogram of potatoes for the farmer?

A) 1 hours of labour
B) 4 hours of labour
C) 1/4 kilogram of meat
D) 4 kilograms of meat

Question 33

Figure 3-2
Refer to Figure 3-2. Assume that Cliff and Paul were both producing wheat and corn, and both were dividing their time equally between the two. Then they decide to specialize in the product for which they have a comparative advantage and trade 3 bushels of wheat for 3 bushels of corn. What would Cliff now be able to consume?

A) 3 bushels of wheat and 3 bushels of corn
B) 3 bushels of wheat and 5 bushels of corn
C) 4 bushels of wheat and 3 bushels of corn
D) 5 bushels of wheat and 3 bushels of corn

Question 34

Figure 3-1
Refer to Figure 3-1. What do the two producers have a comparative advantage in?

A) Paul has a comparative advantage in both wheat and corn.
B) Paul has a comparative advantage in wheat, and Cliff has a comparative advantage in corn.
C) Cliff has a comparative advantage in wheat, and Paul has a comparative advantage in corn.
D) Cliff has a comparative advantage in both wheat and corn.

Question 35

Figure 3-1
Refer to Figure 3-1. What do the two producers have an absolute advantage in?

A) Paul has an absolute advantage in both wheat and corn.
B) Paul has an absolute advantage in wheat, and Cliff has an absolute advantage in corn.
C) Cliff has an absolute advantage in wheat, and Paul has an absolute advantage in corn.
D) Cliff has an absolute advantage in both wheat and corn.

Question 36

Figure 3-2
Refer to Figure 3-2. If Paul divides his time equally between corn and wheat, what will he be able to produce?

A) 4 bushels of wheat and 1 bushel of corn
B) 4 bushels of wheat and 5 bushels of corn
C) 5 bushels of wheat and 4 bushels of corn
D) 5 bushels of wheat and 5 bushels of corn

Question 37

Figure 3-2
Refer to Figure 3-2. What is the opportunity cost of 1 bushel of wheat for Cliff?

A) 1/4 bushel of corn
B) 1/2 bushel of corn
C) 1 bushel of corn
D) 4 bushels of corn

Question 38

Figure 3-1
Refer to Figure 3-1. What is the opportunity cost of 1 bushel of wheat for Cliff?

A) 1/3 bushel of corn
B) 2/3 bushel of corn
C) 1 bushel of corn
D) 3/2 bushels of corn

Question 39

Figure 3-1
Refer to Figure 3-1. Assume that Cliff and Paul were both producing wheat and corn, and each was dividing their time equally between the two. Then they decide to specialize in the product they have a comparative advantage in. What would happen to the total production of corn?

A) It would increase by 1 bushel.
B) It would increase by 3 bushels.
C) It would increase by 5 bushels.
D) It would increase by 7 bushels.

Question 40

Refer to Table 3-2. What does each producer have an absolute or comparative advantage in?

A) The rancher has an absolute advantage in both goods, and the farmer has a comparative advantage in meat.
B) The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in potatoes.
C) The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in neither good.
D) The rancher has an absolute advantage in neither good, and the farmer has a comparative advantage in potatoes.

Question 41

Figure 3-4
Refer to Figure 3-4. For Ben, what is the opportunity cost of one bottle of beer?

A) 1/2 bottle of wine
B) 1/4 bottle of wine
C) 2 bottles of wine
D) 4 bottles of wine

Question 42

Figure 3-4
Refer to Figure 3-4. What does each of the two producers have a comparative or absolute advantage in?

A) Ben has a comparative advantage in wine, and Jerry has an absolute advantage in both goods.
B) Ben has a comparative advantage in beer, and Jerry has an absolute advantage in both goods.
C) Ben has a comparative advantage in beer, and Jerry has an absolute advantage in wine.
D) Ben has a comparative advantage in wine, and Jerry has an absolute advantage in beer.

Question 43

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. What does each of the two producers have a comparative or absolute advantage in?

A) Ben has a comparative advantage in ice cream, and Jerry has an absolute advantage in both goods.
B) Ben has a comparative advantage in cones, and Jerry has an absolute advantage in ice cream.
C) Ben has a comparative advantage in ice cream, and Jerry has an absolute advantage in neither good.
D) Ben has a comparative advantage in ice cream, and Jerry has an absolute advantage in cones.

Question 44

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. What does each of the two producers have a comparative or absolute advantage in?

A) Ben has an absolute advantage in cones, and Jerry has a comparative advantage in ice cream.
B) Ben has an absolute advantage in both goods, and Jerry has a comparative advantage in cones.
C) Ben has an absolute advantage in ice cream, and Jerry has a comparative advantage in cones.
D) Ben has an absolute advantage in neither good, and Jerry has a comparative advantage in ice cream.

Question 45

Figure 3-4
Refer to Figure 3-4. For Jerry, what is the opportunity cost of one bottle of beer?

A) 1/3 bottle of wine
B) 1/2 bottle of wine
C) 1 bottle of wine
D) 3 bottles of wine

Question 46

Figure 3-4
Refer to Figure 3-4. For Ben, what is the opportunity cost of one bottle of wine?

A) 1/4 bottle of beer
B) 1/2 bottle of beer
C) 2 bottles of beer
D) 4 bottles of beer

Question 47

Figure 3-2
Refer to Figure 3-2. What do the two producers have an absolute advantage in?

A) Paul has an absolute advantage in both wheat and corn.
B) Paul has an absolute advantage in wheat, and Cliff has an absolute advantage in corn.
C) Cliff has an absolute advantage in wheat, and Paul has an absolute advantage in corn.
D) Cliff has an absolute advantage in both wheat and corn.

Question 48

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. For Jerry, what is the opportunity cost of 1 kg of ice cream?

A) 1/3 kg of cones
B) 1 kg of cones
C) 3/2 kg of cones
D) 2 kg of cones

Question 49

Figure 3-4
Refer to Figure 3-4. What does each of the two producers have a comparative or absolute advantage in?

A) Ben has an absolute advantage in wine, and Jerry has a comparative advantage in neither good.
B) Ben has an absolute advantage in both goods, and Jerry has a comparative advantage in beer.
C) Ben has an absolute advantage in wine, and Jerry has a comparative advantage in beer.
D) Ben has an absolute advantage in beer, and Jerry has a comparative advantage in wine.

Question 50

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. What does each of the two producers have a comparative advantage in?

A) Ben has a comparative advantage in cones, and Jerry has a comparative advantage in ice cream.
B) Ben has a comparative advantage in ice cream, and Jerry has a comparative advantage in cones.
C) Ben has a comparative advantage in neither good, and Jerry has a comparative advantage in both goods.
D) Ben has a comparative advantage in both goods, and Jerry has a comparative advantage in neither good.

Question 51

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. Suppose Ben and Jerry were both producing at point A on their production possibilities frontier and then Ben decided he would be willing to trade 4 kg of cones to get 2 kg of ice cream from Jerry. If both decided to specialize in what they had a comparative advantage in and trade, what would be the gains from trade?

A) 1 kg of cones for Ben and 1 kg of ice cream for Jerry
B) 1 kg of ice cream for Ben and 1 kg of cones for Jerry
C) 2 kg of ice cream for Ben and 2 kg of cones for Jerry
D) 2 kg of ice cream for Ben and 1 kg of cones for Jerry

Question 52

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. Suppose that Ben and Jerry have both decided to produce at point A on their production possibilities frontiers. What can we infer from this information?

A) that this is not an efficient combination for neither Ben nor Jerry
B) that Ben and Jerry are both allocating 1/2 their time to the production of each good
C) that no other production point is as efficient for both Ben and Jerry to produce as point A
D) that the two must be trading with each other

Question 53

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. For Ben, what is the opportunity cost of 1 kg of ice cream?

A) 1/4 kg of cones
B) 1/2 kg of cones
C) 2 kg of cones
D) 4 kg of cones

Question 54

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. For Ben, what is the opportunity cost of 1 kg of cones?

A) 1/4 kg of ice cream
B) 1/2 kg of ice cream
C) 2 kg of ice cream
D) 4 kg of ice cream

Question 55

Figure 3-4
Refer to Figure 3-4. For Jerry, what is the opportunity cost of one bottle of wine?

A) 1/3 bottle of beer
B) 1/2 bottle of beer
C) 1 bottle of beer
D) 3 bottles of beer

Question 56

Figure 3-4
Refer to Figure 3-4. What does each of the two producers have a comparative advantage in?

A) Ben has a comparative advantage in beer, and Jerry has a comparative advantage in wine.
B) Ben has a comparative advantage in wine, and Jerry has a comparative advantage in beer.
C) Ben has a comparative advantage in neither good, and Jerry has a comparative advantage in wine.
D) Ben has a comparative advantage in both goods, and Jerry has a comparative advantage in neither.

Question 57

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. What does each of the two producers have an absolute advantage in?

A) Ben has an absolute advantage in ice cream, and Jerry has an absolute advantage in cones.
B) Ben has an absolute advantage in cones, and Jerry has an absolute advantage in ice cream.
C) Ben has an absolute advantage in neither good, and Jerry has an absolute advantage in both goods.
D) Ben has an absolute advantage in both goods, and Jerry has an absolute advantage in neither good.

Question 58

Figure 3-4
Refer to Figure 3-4. What does each of the two producers have an absolute advantage in?

A) Ben has an absolute advantage in wine, and Jerry has an absolute advantage in neither good.
B) Ben has an absolute advantage in beer, and Jerry has an absolute advantage in wine.
C) Ben has an absolute advantage in wine, and Jerry has an absolute advantage in beer.
D) Ben has an absolute advantage in neither good, and Jerry has an absolute advantage in both goods.

Question 59

Figure 3-3
Ice cream and cones are measured in kilograms.
Refer to Figure 3-3. For Jerry, what is the opportunity cost of 1 kg of cones?

A) 2/3 kg of ice cream
B) 1 kg of ice cream
C) 2 kg of ice cream
D) 3 kg of ice cream

Question 60

Figure 3-2
Refer to Figure 3-2. What do the two producers have an absolute or comparative advantage in?

A) Paul has a comparative advantage in both wheat and corn.
B) Paul has an absolute advantage in wheat, and Cliff has a comparative advantage in corn.
C) Cliff has a comparative advantage in wheat, and Paul has a comparative advantage in corn.
D) Cliff has a comparative advantage in both wheat and corn.

Question 61

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. What should Fred and Ginger produce?

A) Fred should produce tap shoes, and Ginger should produce ballet slippers.
B) Fred should produce tap shoes and ballet slippers, and Ginger should produce ballet slippers.
C) Fred should produce tap shoes, and Ginger should produce ballet slippers and tap shoes.
D) Fred should produce ballet slippers, and Ginger should produce tap shoes.

Question 62

Refer to Table 3-3. What does each of the two producers have a comparative or absolute advantage in?

A) Maria has a comparative advantage in sweaters, and Courtney has an absolute advantage in neither good.
B) Maria has a comparative advantage in coats, and Courtney has an absolute advantage in sweaters.
C) Maria has a comparative advantage in sweaters, and Courtney has an absolute advantage in coats.
D) Maria has a comparative advantage in coats, and Courtney has an absolute advantage in both goods.

Question 63

Figure 3-4
Refer to Figure 3-4. Suppose Ben and Jerry both spend half their time producing beer and half their time producing wine. How much wine and beer does each produce?

A) Ben will produce 4 bottles of beer and 2 bottles of wine.
B) Ben will produce 4 bottles of beer and 4 bottles of wine.
C) Jerry will produce 1.5 bottles of beer and 4.5 bottles of wine.
D) Jerry will produce 8 bottles of beer and 4 bottles of wine.

Question 64

Refer to Table 3-3. How could Maria and Courtney both benefit?

A) by Maria specializing in coats and Courtney specializing in sweaters
B) by Maria specializing in neither good and Courtney specializing in both goods
C) by Maria specializing in sweaters and Courtney specializing in coats
D) by Maria specializing in both goods and Courtney specializing in neither good

Question 65

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. If Fred and Ginger devote half of their time (20 hours) to the production of each good, what would the total production be?

A) 7 ballet slippers and 8 tap shoes
B) 8 ballet slippers and 8 tap shoes
C) 9 ballet slippers and 6 tap shoes
D) 10 ballet slippers and 8 tap shoes

Question 66

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. What should Ginger and Fred specialize in?

A) Ginger should specialize in tap shoes, and Fred should specialize in ballet slippers.
B) Ginger should specialize in both goods, and Fred should specialize in neither good.
C) Ginger should specialize in ballet slippers, and Fred should specialize in tap shoes.
D) Ginger should specialize in neither good, and Fred should specialize in both goods.

Question 67

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. What is the opportunity cost of one pair of tap shoes for Fred?

A) 1/5 pair of ballet slippers
B) 1/3 pair of ballet slippers
C) 3/5 pair of ballet slippers
D) 5/3 pairs of ballet slippers

Question 68

Refer to Table 3-3. What is the opportunity cost of one sweater for Maria?

A) 2 coats
B) 3 coats
C) 4 coats
D) 5 coats

Question 69

Refer to Table 3-3. What does each of the two producers have a comparative advantage in?

A) Maria has a comparative advantage in coats, and Courtney has a comparative advantage in sweaters.
B) Maria has a comparative advantage in sweaters, and Courtney has a comparative advantage in coats.
C) Maria has a comparative advantage in neither good, and Courtney has a comparative advantage in both goods.
D) Maria has a comparative advantage in both goods, and Courtney has a comparative advantage in neither good.

Question 70

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. What is the opportunity cost of one pair of tap shoes for Ginger?

A) 1/4 pair of ballet slippers
B) 1/3 pair of ballet slippers
C) 3/4 pair of ballet slippers
D) 4/3 pairs of ballet slippers

Question 71

Refer to Table 3-3. What is the opportunity cost of one sweater for Courtney?

A) 2 coats
B) 3 coats
C) 4 coats
D) 5 coats

Question 72

Refer to Table 3-3. What is the opportunity cost of one coat for Courtney?

A) 1/4 sweater
B) 1 sweater
C) 4 sweaters
D) 5 sweaters

Question 73

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. Who has a comparative or absolute advantage in what product?

A) Ginger has an absolute advantage in tap shoes, and Fred has a comparative advantage in ballet slippers.
B) Ginger has an absolute advantage in both goods, and Fred has a comparative advantage in neither good.
C) Ginger has an absolute advantage in ballet slippers, and Fred has a comparative advantage in tap shoes.
D) Ginger has an absolute advantage in neither good, and Fred has a comparative advantage in both goods.

Question 74

Refer to Table 3-3. What does each of the two producers have a comparative or absolute advantage in?

A) Maria has an absolute advantage in coats, and Courtney has a comparative advantage in sweaters.
B) Maria has an absolute advantage in both goods, and Courtney has a comparative advantage in coats.
C) Maria has an absolute advantage in sweaters, and Courtney has a comparative advantage in sweaters.
D) Maria has an absolute advantage in neither good, and Courtney has a comparative advantage in sweaters.

Question 75

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. What does each of the two producers have an absolute advantage in?

A) Ginger has an absolute advantage in ballet slippers, and Fred has an absolute advantage in tap shoes.
B) Ginger has an absolute advantage in tap shoes, and Fred has an absolute advantage in ballet slippers.
C) Ginger has an absolute advantage in neither good, and Fred has an absolute advantage in both goods.
D) Ginger has an absolute advantage in both goods, and Fred has an absolute advantage in neither good.

Question 76

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. Who has a comparative advantage in each good?

A) Ginger has a comparative advantage in tap shoes, and Fred has a comparative advantage in ballet slippers.
B) Ginger has a comparative advantage in both goods, and Fred has a comparative advantage in neither good.
C) Ginger has a comparative advantage in ballet slippers, and Fred has a comparative advantage in tap shoes.
D) Ginger has a comparative advantage in neither good, and Fred has a comparative advantage in both goods.

Question 77

Refer to Table 3-3. What does each of the two producers have an absolute advantage in?

A) Maria has an absolute advantage in coats, and Courtney has an absolute advantage in sweaters.
B) Maria has an absolute advantage in sweaters, and Courtney has an absolute advantage in coats.
C) Maria has an absolute advantage in neither good, and Courtney has an absolute advantage in both goods.
D) Maria has an absolute advantage in both goods, and Courtney has an absolute advantage in neither good.

Question 78

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. What is the opportunity cost of one pair of ballet slippers for Ginger?

A) 1/4 pair of tap shoes
B) 1/3 pair of tap shoes
C) 3/4 pair of tap shoes
D) 4/3 pairs of tap shoes

Question 79

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
Refer to Figure 3-5. What is the opportunity cost of one pair of ballet slippers for Fred?

A) 1/5 pair of tap shoes
B) 1/3 pair of tap shoes
C) 3/5 pair of tap shoes
D) 5/3 pairs of tap shoes

Question 80

Refer to Table 3-3. What is the opportunity cost of one coat for Maria?

A) 1/5 sweater
B) 1/4 sweater
C) 1 sweater
D) 5 sweaters