Question 1

Figure 3-17
Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier
 
-Refer to Figure 3-17. Maxine has an absolute advantage in the production of

Accepted Answer

A)   both goods and a comparative advantage in the production of pies.
B)   both goods and a comparative advantage in the production of tarts.
C)   neither good and a comparative advantage in the production of pies.
D)   neither good and a comparative advantage in the production of tarts.E) A) and C)
F) A) and B)

Question 2

Table 3-36
 
-Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is

Accepted Answer

A)   4 towels and 3 umbrellas.
B)   5 towels and 6 umbrellas.
C)   8 towels and 10 umbrellas.
D)   9 towels and 9 umbrellas.E) A) and B)
F) A) and C)

Question 3

Table 3-9
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
 
-Refer to Table 3-9. Assume that Maya and Miguel each has 60 hours available. If each person divides his/her time equally between the production of mixers and toasters, then total production is

Accepted Answer

A)   8 mixers and 16 toasters.
B)   3.5 mixers and 6 toasters.
C)   15 mixers and 9 toasters.
D)   20 mixers and 12 toasters.E) A) and D)
F) None of the above

Question 4

International trade can make some individuals within a country worse off, even as it makes the country as a whole better off.

Accepted Answer

A) True 
 B)False

Question 5

Table 3-7
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.
 
-Refer to Table 3-7. Assume that the farmer and the rancher each has 24 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is

Accepted Answer

A)   6 pounds of meat and 4.5 pounds of potatoes.
B)   5.5 pounds of meat and 8 pounds of potatoes.
C)   12 pounds of meat and 9 pounds of potatoes.
D)   5 pounds of meat and 5.5 pounds of potatoes.E) All of the above
F) C) and D)

Question 6

Table 3-31
   -Refer to Table 3-31. Relative to the farmer, the rancher has an absolute advantage in the production of A)  meat, but not in the production of potatoes. B)  potatoes, but not in the production of meat. C)  both meat and potatoes. D)  neither meat nor potatoes." class="answers-bank-image d-inline" rel="preload" >  
-Refer to Table 3-31. Relative to the farmer, the rancher has an absolute advantage in the production of

Accepted Answer

A)   meat, but not in the production of potatoes.
B)   potatoes, but not in the production of meat.
C)   both meat and potatoes.
D)   neither meat nor potatoes.E) None of the above
F) All of the above

Question 7

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's opportunity cost of testing one cellular phone is programming

Accepted Answer

A)   0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones.
B)   0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones.
C)   7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones.
D)   7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones.E) A) and B)
F) A) and C)

Question 8

Country A and country B both produce shirts and shorts. Country B has an absolute advantage producing both shirts and shorts. Is there any condition under which the two countries could gain from trade?

Accepted Answer

Yes, if each has a c...

Question 9

When an economist points out that you and millions of other people are interdependent, he or she is referring to the fact that we all

Accepted Answer

A)   rely upon the government to provide us with the basic necessities of life.
B)   rely upon one another for the goods and services we consume.
C)   have similar tastes and abilities.
D)   are concerned about one another's well­being.E) C) and D)
F) None of the above

Question 10

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. Which of the following statements is true?

Accepted Answer

A)   Both countries could gain from trade with each other.
B)   Neither country could gain from trade with each other because Cornland has an absolute advantage in both goods.
C)   Neither country could gain from trade with each other because neither one has a comparative advantage.
D)   Oatland could gain from trade between the two countries, but Cornland definitively would lose.E) B) and C)
F) A) and B)

Question 11

Figure 3-23
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 3-23. Whenever Bonovia increases its production of ham by 1 pound per month, then it must decrease its production of cheese by

Accepted Answer

A)   0.75 pound.
B)   0.80 pound.
C)   1.00 pounds.
D)   1.25 pounds.E) A) and D)
F) A) and C)

Question 12

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

Accepted Answer

A)   programming cellular phones and a comparative advantage in programming cellular phones.
B)   programming cellular phones and a comparative advantage in testing cellular phones.
C)   testing cellular phones and a comparative advantage in programming cellular phones.
D)   testing cellular phones and a comparative advantage in testing cellular phones.E) A) and B)
F) A) and D)

Question 13

Figure 3-4
Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier
 
-Refer to Figure 3-4. If the production possibilities frontiers shown are each for one year of working, then which of the following combinations of jackets and sweaters could Lisa and Bryce together produce in a given year?

Accepted Answer

A)   1 sweater and 22 jackets
B)   2 sweaters and 20 jackets
C)   4 sweaters and 12 jackets
D)   5 sweaters and 7 jacketsE) A) and B)
F) A) and C)

Question 14

Table 3-25
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
 
-Refer to Table 3-25. At which of the following prices would both Maya and Miguel gain from trade with each other?

Accepted Answer

A)   4 mixers for 7 toasters
B)   8 mixers for 10 toasters
C)   12 mixers for 18 toasters
D)   Maya and Miguel could not both gain from trade with each other at any price.E) B) and C)
F) A) and B)

Question 15

Table 3-41
 
-Refer to Table 3-41. Which country has an absolute advantage in producing radios?

Accepted Answer

The answer of Table 3-41
 
-Refer to Table 3-41. Which...

Question 16

By definition, exports are

Accepted Answer

A)   limits placed on the quantity of goods brought into a country.
B)   goods in which a country has an absolute advantage.
C)   people who work in foreign countries.
D)   goods produced domestically and sold abroad.E) None of the above
F) B) and C)

Question 17

Table 3-36
 
-Refer to Table 3-36. Antigua has a comparative advantage in the production of

Accepted Answer

A)   towels and Barbuda has a comparative advantage in the production of umbrellas.
B)   umbrellas and Barbuda has a comparative advantage in the production of towels.
C)   both goods and Barbuda has a comparative advantage in the production of neither good.
D)   neither good and Barbuda has a comparative advantage in the production of both goods.E) B) and C)
F) A) and D)

Question 18

If a person chooses self-sufficiency, then she can only consume what she produces.

Accepted Answer

A) True 
 B)False

Question 19

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. The opportunity cost of 1 unit of cheese for Spain is

Accepted Answer

A)   1/2 unit of bread.
B)   2 hours of labor.
C)   2 units of bread.
D)   4 hours of labor.E) A) and D)
F) B) and C)

Question 20

Some countries win in international trade, while other countries lose.

Accepted Answer

A) True 
 B)False

Exam 3: Interdependence and the Gains From Trade

Country A and country B both produce shirts and shorts. Country B has an absolute advantage producing both shirts and shorts. Is there any condition under which the two countries could gain from trade?

Correct Answer
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Yes, if each has a c...
View Answer

Table 3-25 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-25. At which of the following prices would both Maya and Miguel gain from trade with each other?

Correct Answer
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By definition, exports are

Correct Answer
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Figure 3-23 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 3-23. Whenever Bonovia increases its production of ham by 1 pound per month, then it must decrease its production of cheese by

Correct Answer
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If a person chooses self-sufficiency, then she can only consume what she produces.

Correct Answer
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Table 3-41 -Refer to Table 3-41. Which country has an absolute advantage in producing radios?

Correct Answer
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Correct Answer
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When an economist points out that you and millions of other people are interdependent, he or she is referring to the fact that we all

Correct Answer
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Table 3-31 -Refer to Table 3-31. Relative to the farmer, the rancher has an absolute advantage in the production of

Correct Answer
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Correct Answer
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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. The opportunity cost of 1 unit of cheese for Spain is

Correct Answer
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Table 3-36 -Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is

Correct Answer
verified

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

Correct Answer
verified

Some countries win in international trade, while other countries lose.

Correct Answer
verified

International trade can make some individuals within a country worse off, even as it makes the country as a whole better off.

Correct Answer
verified

Figure 3-17 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier -Refer to Figure 3-17. Maxine has an absolute advantage in the production of

Correct Answer
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Table 3-36 -Refer to Table 3-36. Antigua has a comparative advantage in the production of

Correct Answer
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Correct Answer
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Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. Which of the following statements is true?

Correct Answer
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Correct Answer
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Exam 3: Interdependence and the Gains From Trade

Country A and country B both produce shirts and shorts. Country B has an absolute advantage producing both shirts and shorts. Is there any condition under which the two countries could gain from trade?

Correct AnswerverifiedYes, if each has a c...View AnswerShow Answer

Table 3-25 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-25. At which of the following prices would both Maya and Miguel gain from trade with each other?

Correct AnswerverifiedShow Answer

By definition, exports are

Correct AnswerverifiedShow Answer

Figure 3-23 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 3-23. Whenever Bonovia increases its production of ham by 1 pound per month, then it must decrease its production of cheese by

Correct AnswerverifiedShow Answer

If a person chooses self-sufficiency, then she can only consume what she produces.

Correct AnswerverifiedShow Answer

Table 3-41 -Refer to Table 3-41. Which country has an absolute advantage in producing radios?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When an economist points out that you and millions of other people are interdependent, he or she is referring to the fact that we all

Correct AnswerverifiedShow Answer

Table 3-31 -Refer to Table 3-31. Relative to the farmer, the rancher has an absolute advantage in the production of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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. The opportunity cost of 1 unit of cheese for Spain is

Correct AnswerverifiedShow Answer

Table 3-36 -Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Some countries win in international trade, while other countries lose.

Correct AnswerverifiedShow Answer

International trade can make some individuals within a country worse off, even as it makes the country as a whole better off.

Correct AnswerverifiedShow Answer

Figure 3-17 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier -Refer to Figure 3-17. Maxine has an absolute advantage in the production of

Correct AnswerverifiedShow Answer

Table 3-36 -Refer to Table 3-36. Antigua has a comparative advantage in the production of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. Which of the following statements is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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Yes, if each has a c...
View Answer

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