Question 1

Figure 3-16
Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier 
-Refer to Figure 3-16. At which of the following prices would both Hosne and Merve gain from trade with each other?

Accepted Answer

A)   5 wallets for 1.25 purses
B)   5 wallets for 2.5 purses
C)   5 wallets for 3.75 purses
D)   Hosne and Merve could not both gain from trade with each other at any price.E) All of the above
F) None of the above

Question 2

Figure 3-26
Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier 
-Refer to Figure 3-26. Who has a comparative advantage in making muffins?

Accepted Answer

The answer of Figure 3-26
Mary's Production Possibilities Frontier Kate's Production...

Question 3

Table 3-6
Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.
 
-Refer to Table 3-6. Which of the following combinations of toothbrushes and hairbrushes could Portugal produce in 30 minutes?

Accepted Answer

A)   1 toothbrush and 4 hairbrushes
B)   4 toothbrushes and 2 hairbrushes
C)   5 toothbrushes and 6 hairbrushes
D)   6 toothbrushes and 5 hairbrushesE) A) and B)
F) A) and C)

Question 4

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 plate for Huang is

Accepted Answer

A)   1/3 parasol.
B)   1/2 parasol.
C)   3 parasols.
D)   4 parasols.E) A) and B)
F) All of the above

Question 5

Table 3-4
Assume that Andrea and Paul can switch between producing wheat and producing beef at a constant rate.
 
-Refer to Table 3-4. Which of the following combinations of wheat and beef could Andrea produce in one 8-hour day?

Accepted Answer

A)   16 bushels of wheat and 32 pounds of beef
B)   9 bushels of wheat and 25 pounds of beef
C)   7 bushels of wheat and 15 pounds of beef
D)   10 bushels of wheat and 13 pounds of beefE) A) and D)
F) B) and D)

Question 6

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

Question 7

Table 3-1
Assume that John and Jane can switch between producing bread and wine at a constant rate.
 
-Refer to Table 3-1. Assume that John and Jane each work 24 hours. What happens to total production if instead of each person spending 12 hours producing each good, Jane spends 21 hours producing wine and 3 hours producing bread and John spends 3 hours producing wine and 21 hours producing bread?

Accepted Answer

A)   The total production of bread and wine each rise.
B)   The total production of bread rises and the total production of wine falls.
C)   The total production of bread falls and the total production of wine rises.
D)   The total production of bread and wine each fall.E) A) and B)
F) A) and C)

Question 8

In an economy consisting of two people producing two goods, it is possible for one person to have the absolute advantage and the comparative advantage in both goods.

Accepted Answer

A) True 
 B)False

Question 9

What must be given up to obtain an item is called

Accepted Answer

A)   out-of-pocket cost.
B)   comparative worth.
C)   opportunity cost.
D)   absolute value.E) None of the above
F) A) and D)

Question 10

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) A) and C)
F) All of the above

Question 11

Figure 3-16
Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier 
-Refer to Figure 3-16. Hosne's opportunity cost of one purse is

Accepted Answer

A)   4/5 wallet and Merve's opportunity cost of one purse is 2/3 wallet.
B)   4/5 wallet and Merve's opportunity cost of one purse is 3/2 wallets.
C)   5/4 wallets and Merve's opportunity cost of one purse is 2/3 wallet.
D)   5/4 wallets and Merve's opportunity cost of one purse is 3/2 wallets.E) None of the above
F) B) and D)

Question 12

Table 3-41
 
-Refer to Table 3-41. What is England's opportunity cost of one compass?

Accepted Answer

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

Question 13

It takes Heather 1 hour to change the oil in the car and 20 minutes to do the dishes. It takes Zach 1.5 hours to change the oil in the car. For Zach to have a comparative advantage changing the oil it must take him more than minutes to do the dishes.

Accepted Answer

The answer of It takes Heather 1 hour to change...

Question 14

Table 3-6
Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.
 
-Refer to Table 3-6. Which of the following combinations of toothbrushes and hairbrushes could Zimbabwe not produce in 120 minutes?

Accepted Answer

A)   5 toothbrushes and 11 hairbrushes
B)   10 toothbrushes and 9 hairbrushes
C)   20 toothbrushes and 6 hairbrushes
D)   30 toothbrushes and 3 hairbrushesE) All of the above
F) None of the above

Question 15

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

Accepted Answer

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) B) and D)
F) B) and C)

Question 16

When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods.

Accepted Answer

A) True 
 B)False

Question 17

Interdependence among individuals and interdependence among nations are both based on the gains from trade.

Accepted Answer

A) True 
 B)False

Question 18

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. Which of the following combinations of meat and potatoes could the rancher not produce in 24 hours?

Accepted Answer

A)   5 pounds of meat and 1 pounds of potatoes.
B)   2 pounds of meat and 2 pounds of potatoes.
C)   1 pounds of meat and 3 pounds of potatoes.
D)   4 pounds of meat and 1 pound of potatoes.E) B) and D)
F) A) and C)

Question 19

Figure 3-19
Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier 
-Refer to Figure 3-19. If Chile and Colombia each spends all of its time producing the good in which it has a comparative advantage and the countries agree to trade 7 pounds of coffee for 5 pounds of soybeans, then Chile will consume

Accepted Answer

A)   7 pounds of coffee and 7 pounds of soybeans and Colombia will consume 5 pounds of coffee and 5 pounds of soybeans.
B)   7 pounds of coffee and 7 pounds of soybeans and Colombia will consume 5 pounds of coffee and 11 pounds of soybeans.
C)   23 pounds of coffee and 7 pounds of soybeans and Colombia will consume 5 pounds of coffee and 5 pounds of soybeans.
D)   23 pounds of coffee and 7 pounds of soybeans and Colombia will consume 5 pounds of coffee and 11 pounds of soybeans.E) B) and C)
F) A) and D)

Question 20

Assume for Brazil that the opportunity cost of each cashew is 100 peanuts. Which of these pairs of points could be on Brazil's production possibilities frontier?

Accepted Answer

A)   200 cashews, 30,000 peanuts)  and 150 cashews, 35,000 peanuts) 
B)   200 cashews, 40,000 peanuts)  and 150 cashews, 30,000 peanuts) 
C)   300 cashews, 60,000 peanut)  and 200 cashews, 50,000 peanuts) 
D)   300 cashews, 60,000 peanuts)  and 200 cashews, 80,000 peanuts) E) B) and C)
F) B) and D)

Exam 3: Interdependence and the Gains From Trade

When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods.

Correct Answer
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In an economy consisting of two people producing two goods, it is possible for one person to have the absolute advantage and the comparative advantage in both goods.

Correct Answer
verified

Figure 3-26 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-26. Who has a comparative advantage in making muffins?

Correct Answer
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It takes Heather 1 hour to change the oil in the car and 20 minutes to do the dishes. It takes Zach 1.5 hours to change the oil in the car. For Zach to have a comparative advantage changing the oil it must take him more than minutes to do the dishes.

Correct Answer
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Correct Answer
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Table 3-4 Assume that Andrea and Paul can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-4. Which of the following combinations of wheat and beef could Andrea produce in one 8-hour day?

Correct Answer
verified

Assume for Brazil that the opportunity cost of each cashew is 100 peanuts. Which of these pairs of points could be on Brazil's production possibilities frontier?

Correct Answer
verified

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16. At which of the following prices would both Hosne and Merve gain from trade with each other?

Correct Answer
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Interdependence among individuals and interdependence among nations are both based on the gains from trade.

Correct Answer
verified

What must be given up to obtain an item is called

Correct Answer
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Table 3-6 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-6. Which of the following combinations of toothbrushes and hairbrushes could Portugal produce in 30 minutes?

Correct Answer
verified

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 plate for Huang is

Correct Answer
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Correct Answer
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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. Which of the following combinations of meat and potatoes could the rancher not produce in 24 hours?

Correct Answer
verified

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 England is

Correct Answer
verified

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

Correct Answer
verified

Table 3-41 -Refer to Table 3-41. What is England's opportunity cost of one compass?

Correct Answer
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Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16. Hosne's opportunity cost of one purse is

Correct Answer
verified

Table 3-6 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-6. Which of the following combinations of toothbrushes and hairbrushes could Zimbabwe not produce in 120 minutes?

Correct Answer
verified

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

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods.

Correct AnswerverifiedShow Answer

In an economy consisting of two people producing two goods, it is possible for one person to have the absolute advantage and the comparative advantage in both goods.

Correct AnswerverifiedShow Answer

Figure 3-26 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-26. Who has a comparative advantage in making muffins?

Correct AnswerverifiedShow Answer

It takes Heather 1 hour to change the oil in the car and 20 minutes to do the dishes. It takes Zach 1.5 hours to change the oil in the car. For Zach to have a comparative advantage changing the oil it must take him more than minutes to do the dishes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 3-4 Assume that Andrea and Paul can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-4. Which of the following combinations of wheat and beef could Andrea produce in one 8-hour day?

Correct AnswerverifiedShow Answer

Assume for Brazil that the opportunity cost of each cashew is 100 peanuts. Which of these pairs of points could be on Brazil's production possibilities frontier?

Correct AnswerverifiedShow Answer

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16. At which of the following prices would both Hosne and Merve gain from trade with each other?

Correct AnswerverifiedShow Answer

Interdependence among individuals and interdependence among nations are both based on the gains from trade.

Correct AnswerverifiedShow Answer

What must be given up to obtain an item is called

Correct AnswerverifiedShow Answer

Table 3-6 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-6. Which of the following combinations of toothbrushes and hairbrushes could Portugal produce in 30 minutes?

Correct AnswerverifiedShow 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 plate for Huang is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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. Which of the following combinations of meat and potatoes could the rancher not produce in 24 hours?

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 England is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 3-41 -Refer to Table 3-41. What is England's opportunity cost of one compass?

Correct AnswerverifiedShow Answer

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16. Hosne's opportunity cost of one purse is

Correct AnswerverifiedShow Answer

Table 3-6 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-6. Which of the following combinations of toothbrushes and hairbrushes could Zimbabwe not produce in 120 minutes?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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