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Exam 3: Interdependence and the Gains From Trade

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Question 141

Multiple Choice

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Figure 3-8 -Refer to Figure 3-8.Chile has a comparative advantage in the production of

A) coffee and Colombia has a comparative advantage in the production of soybeans.
B) soybeans and Colombia has a comparative advantage in the production of coffee.
C) both goods and Colombia has a comparative advantage in the production of neither good.
D) neither good and Colombia has a comparative advantage in the production of both goods.

E) All of the above
F) None of the above

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Question 142

Multiple Choice

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A person can benefit from specialization and trade by obtaining a good at a price that is

A) lower than his or her opportunity cost of that good.
B) the same as his or her opportunity cost of that good.
C) higher than his or her opportunity cost of that good.
D) different than his or her opportunity cost of that good.

E) A) and B)
F) B) and C)

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Question 143

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Jake can complete an oil change in 45 minutes and he can write a poem in 90 minutes.Ming-la can complete an oil change in 30 minutes and she can write a poem in 90 minutes.Jake's opportunity cost of writing a poem is lower than Ming-la's opportunity cost of writing a poem.

Figure 3-4 -Refer to Figure 3-4.If Perry and Jordan each spends all of his/her time producing the good in which s/he has a comparative advantage and trade takes place at a price of 1 novel for 7 poems,then

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.England has an absolute advantage in the production of

Figure 3-7 -Refer to Figure 3-7.The opportunity cost of 1 bowl for Bintu is

Table 3-9 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 3-9.Which of the following points would not be on Barb's production possibilities frontier,based on a 40-hour week?

If a country has a lower opportunity cost than its potential trading partner,the country should decide to be self-sufficient.

For international trade to benefit a country,it must benefit all citizens of that country.

Table 3-12 -Refer to Table 3-12.For the farmer,the opportunity cost of 1 pound of meat is

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.England should specialize in the production of

International trade may make some individuals in a nation better off,while other individuals are made worse off.

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

Table 3-2 Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. -Refer to Table 3-2.Aruba should export

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.England should export

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2.If the production possibilities frontier shown is for 40 hours of production,then how long does it take Peru to make one emerald?

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 bread for England is

Suppose Susan can wash three windows per hour or she can iron six shirts per hour.Paul can wash two windows per hour or he can iron five shirts per hour.

Figure 3-2 Peru's Production Possibilities Frontier -Refer to Figure 3-2.Suppose Peru decides to increase its production of rubies by 30.What is the opportunity cost of this decision?

In one month,Moira can knit 2 sweaters or 4 scarves.In one month,Tori can knit 1 sweater or 3 scarves.Moira's opportunity cost of knitting scarves is lower than Tori's opportunity cost of knitting scarves.