Question 1

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

Accepted Answer

A)   meat is the opportunity cost of 10.6 pounds of potatoes.
B)   meat is the opportunity cost of 16.0 pounds of potatoes.
C)   potatoes is the opportunity cost of 6.8 pounds of meat.
D)   potatoes is the opportunity cost of 8.0 pounds of meat.E) A) and D)
F) None of the above

Question 2

Figure 3-18
Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier 
-Refer to Figure 3-18. Suppose Juba is willing to trade one bowl to Bintu for every two cups that Bintu makes and sends to Juba. Which of the following combinations of bowls and cups could Bintu then consume, assuming Bintu specializes in making cups and Juba specializes in making bowls?

Accepted Answer

A)   1 bowl and 7 cups
B)   2 bowls and 4 cups
C)   3 bowls and 3 cups
D)   4 bowls and 1 cupE) A) and B)
F) None of the above

Question 3

Figure 3-25
Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier 
-Refer to Figure 3-25. Chile should specialize in the production of

Accepted Answer

A)   coffee and import soybeans.
B)   soybeans and import coffee.
C)   both goods and import neither good.
D)   neither good and import both goods.E) A) and D)
F) B) and C)

Question 4

People who provide you with goods and services

Accepted Answer

A)   are acting out of generosity.
B)   do so because they get something in return.
C)   have chosen not to become interdependent.
D)   are required to do so by the government.E) None of the above
F) C) and D)

Question 5

Figure 3-19
Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier 
-Refer to Figure 3-19. Chile and Colombia would not be able to gain from trade if Colombia's opportunity cost of one pound of soybeans changed to

Accepted Answer

A)   1/2 pound of coffee.
B)   3/4 pound of coffee.
C)   4/3 pounds of coffee.
D)   2 pounds of coffee.E) A) and C)
F) C) and D)

Question 6

Mark can produce 24 footballs or 48 basketballs in 8 hours. Maria can produce 64 basketballs in 8 hours. In order for Maria to have a comparative advantage producing basketballs, the number of footballs she can produce in 8 hours has to be less than .

Accepted Answer

The answer of Mark can produce 24 footballs or 48...

Question 7

Table 3-27
Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.
 
-Refer to Table 3-27. The opportunity cost of 1 parasol for Huang is

Accepted Answer

A)   1/3 plate.
B)   1/2 plate.
C)   3 plates.
D)   6 plates.E) A) and B)
F) C) and D)

Question 8

Figure 3-14
Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier
 
-Refer to Figure 3-14. Arturo would incur an opportunity cost of 36 burritos if he increased his production of tacos by

Accepted Answer

A)   27.
B)   48.
C)   108.
D)   144.E) None of the above
F) A) and B)

Question 9

What does a production possibilities frontier represent?

Accepted Answer

The combinations of ...

Question 10

If the U.S. could produce 5 televisions per hour of labor and China could produce 3 televisions per hour of labor, would it necessarily follow that the U.S. should specialize in television production? Explain your answer using the concepts of comparative and or absolute advantage.

Accepted Answer

No. Although the U.S...

Question 11

What does a consumption possibilities frontier represent?

Accepted Answer

The combinations of ...

Question 12

Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 chair is

Accepted Answer

A)   1/6 table for Ken and 1/3 table for Traci.
B)   1/6 table for Ken and 3 tables for Traci.
C)   6 tables for Ken and 1/3 table for Traci.
D)   6 tables for Ken and 3 tables for Traci.E) A) and D)
F) C) and D)

Question 13

Tom's opportunity cost of mowing a lawn is 2 loads of laundry. Jen's opportunity cost of mowing a lawn is 1.5 loads of laundry. What is the range of prices for mowing a lawn at which Tom and Jen could both benefit from trade?

Accepted Answer

Less than 2 loads of...

Question 14

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. Which of the following combinations of mixers and toasters could Miguel not produce in 80 hours?

Accepted Answer

A)   5 mixers and 6 toasters.
B)   6 mixers and 5 toasters.
C)   7 mixers and 2 toasters.
D)   4 mixers and 8 toasters.E) A) and B)
F) A) and C)

Question 15

Suppose the U.S. and Japan both produce airplanes and televisions and the U.S. has a comparative advantage in the production of airplanes while Japan has a comparative advantage in the production of televisions. If the U.S. exports airplanes to Japan and imports televisions from Japan,

Accepted Answer

A)   both countries, as a whole, will be better off.
B)   all individuals in both countries will be better off.
C)   both countries, as a whole, will be worse off.
D)   all individuals in both countries will be worse off.E) A) and C)
F) A) and D)

Question 16

Figure 3-18
Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier 
-Refer to Figure 3-18. The opportunity cost of 1 cup for Bintu is

Accepted Answer

A)   1/8 bowl.
B)   1/4 bowl.
C)   4 bowls.
D)   8 bowls.E) A) and C)
F) None of the above

Question 17

Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies. Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies. Who, if either, has an absolute advantage baking bread? Who, if either, has an absolute advantage making cookies?

Accepted Answer

Jennifer has an abso...

Question 18

If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.

Accepted Answer

A) True 
 B)False

Question 19

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. Miguel has an absolute advantage in the production of

Accepted Answer

A)   both goods and a comparative advantage in the production of mixers.
B)   both goods and a comparative advantage in the production of toasters.
C)   neither good and a comparative advantage in the production of mixers.
D)   neither good and a comparative advantage in the production of toasters.E) None of the above
F) B) and C)

Question 20

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour. Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour. Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Accepted Answer

Frank has the comparative adva...

Exam 3: Interdependence and the Gains From Trade

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour. Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour. Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Correct Answer
verified
Frank has the comparative adva...
View Answer

Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies. Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies. Who, if either, has an absolute advantage baking bread? Who, if either, has an absolute advantage making cookies?

Correct Answer
verified
Jennifer has an abso...
View Answer

What does a consumption possibilities frontier represent?

Correct Answer
verified
The combinations of ...
View Answer

Table 3-27 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. -Refer to Table 3-27. The opportunity cost of 1 parasol for Huang is

Correct Answer
verified

Mark can produce 24 footballs or 48 basketballs in 8 hours. Maria can produce 64 basketballs in 8 hours. In order for Maria to have a comparative advantage producing basketballs, the number of footballs she can produce in 8 hours has to be less than .

Correct Answer
verified

If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.

Correct Answer
verified

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19. Chile and Colombia would not be able to gain from trade if Colombia's opportunity cost of one pound of soybeans changed to

Correct Answer
verified

Suppose the U.S. and Japan both produce airplanes and televisions and the U.S. has a comparative advantage in the production of airplanes while Japan has a comparative advantage in the production of televisions. If the U.S. exports airplanes to Japan and imports televisions from Japan,

Correct Answer
verified

Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 chair is

Correct Answer
verified

What does a production possibilities frontier represent?

Correct Answer
verified
The combinations of ...
View Answer

Figure 3-25 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-25. Chile should specialize in the production of

Correct Answer
verified

If the U.S. could produce 5 televisions per hour of labor and China could produce 3 televisions per hour of labor, would it necessarily follow that the U.S. should specialize in television production? Explain your answer using the concepts of comparative and or absolute advantage.

Correct Answer
verified
No. Although the U.S...
View Answer

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

Correct Answer
verified

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14. Arturo would incur an opportunity cost of 36 burritos if he increased his production of tacos by

Correct Answer
verified

Tom's opportunity cost of mowing a lawn is 2 loads of laundry. Jen's opportunity cost of mowing a lawn is 1.5 loads of laundry. What is the range of prices for mowing a lawn at which Tom and Jen could both benefit from trade?

Correct Answer
verified
Less than 2 loads of...
View Answer

Figure 3-18 Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier -Refer to Figure 3-18. The opportunity cost of 1 cup for Bintu is

Correct Answer
verified

Correct Answer
verified

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. Which of the following combinations of mixers and toasters could Miguel not produce in 80 hours?

Correct Answer
verified

People who provide you with goods and services

Correct Answer
verified

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. Miguel has an absolute advantage in the production of

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour. Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour. Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Correct AnswerverifiedFrank has the comparative adva...View AnswerShow Answer

Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies. Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies. Who, if either, has an absolute advantage baking bread? Who, if either, has an absolute advantage making cookies?

Correct AnswerverifiedJennifer has an abso...View AnswerShow Answer

What does a consumption possibilities frontier represent?

Correct AnswerverifiedThe combinations of ...View AnswerShow Answer

Table 3-27 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. -Refer to Table 3-27. The opportunity cost of 1 parasol for Huang is

Correct AnswerverifiedShow Answer

Mark can produce 24 footballs or 48 basketballs in 8 hours. Maria can produce 64 basketballs in 8 hours. In order for Maria to have a comparative advantage producing basketballs, the number of footballs she can produce in 8 hours has to be less than .

Correct AnswerverifiedShow Answer

If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.

Correct AnswerverifiedShow Answer

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19. Chile and Colombia would not be able to gain from trade if Colombia's opportunity cost of one pound of soybeans changed to

Correct AnswerverifiedShow Answer

Suppose the U.S. and Japan both produce airplanes and televisions and the U.S. has a comparative advantage in the production of airplanes while Japan has a comparative advantage in the production of televisions. If the U.S. exports airplanes to Japan and imports televisions from Japan,

Correct AnswerverifiedShow Answer

Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 chair is

Correct AnswerverifiedShow Answer

What does a production possibilities frontier represent?

Correct AnswerverifiedThe combinations of ...View AnswerShow Answer

Figure 3-25 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-25. Chile should specialize in the production of

Correct AnswerverifiedShow Answer

If the U.S. could produce 5 televisions per hour of labor and China could produce 3 televisions per hour of labor, would it necessarily follow that the U.S. should specialize in television production? Explain your answer using the concepts of comparative and or absolute advantage.

Correct AnswerverifiedNo. Although the U.S...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14. Arturo would incur an opportunity cost of 36 burritos if he increased his production of tacos by

Correct AnswerverifiedShow Answer

Tom's opportunity cost of mowing a lawn is 2 loads of laundry. Jen's opportunity cost of mowing a lawn is 1.5 loads of laundry. What is the range of prices for mowing a lawn at which Tom and Jen could both benefit from trade?

Correct AnswerverifiedLess than 2 loads of...View AnswerShow Answer

Figure 3-18 Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier -Refer to Figure 3-18. The opportunity cost of 1 cup for Bintu is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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. Which of the following combinations of mixers and toasters could Miguel not produce in 80 hours?

Correct AnswerverifiedShow Answer

People who provide you with goods and services

Correct AnswerverifiedShow 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. Miguel has an absolute advantage in the production of

Correct AnswerverifiedShow Answer

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Frank has the comparative adva...
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Jennifer has an abso...
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The combinations of ...
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The combinations of ...
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No. Although the U.S...
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Less than 2 loads of...
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