Question 1

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 Jim's production possibilities frontier,based on a 40-hour week?

Accepted Answer

A)   (0 computers set up,60 computers tested) 
B)   (40 computers set up,30 computers tested) 
C)   (60 computers set up,12 computers tested) 
D)   (72 computers set up,6 computers tested) E) B) and C)
F) None of the above

Question 2

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.Assume that England and Spain each has 40 labor hours available.If each country divides its time equally between the production of cheese and bread,then total production is

Accepted Answer

A)   20 units of cheese and 5 units of bread.
B)   25 units of cheese and 7.5 units of bread.
C)   40 units of cheese and 10 units of bread.
D)   50 units of cheese and 15 units of bread.E) A) and D)
F) All of the above

Question 3

Figure 3-7
Bintu’s Production Possibilities Frontier	
 Juba’s Production Possibilities Frontier
-Refer to Figure 3-7.If the production possibilities frontiers shown are each for 4 hours of work,then which of the following combinations of bowls and cups could Bintu and Juba together not make in a given 4-hour production period?

Accepted Answer

A)   3 bowls and 9.5 cups
B)   4.5 bowls and 6 cups
C)   5 bowls and 4 cups
D)   6 bowls and 1 cupsE) A) and B)
F) None of the above

Question 4

Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks.Which of the following is not possible?

Accepted Answer

A)   Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks.
B)   Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks.
C)   Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats.
D)   Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.E) B) and C)
F) A) and C)

Question 5

Trade can make everybody better off because it

Accepted Answer

A)   increases cooperation among nations.
B)   allows people to specialize according to comparative advantage.
C)   requires some workers in an economy to be retrained.
D)   reduces competition among domestic companies.E) None of the above
F) C) and D)

Question 6

Table 3-8
Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.
 
-Refer to Table 3-8.The opportunity cost of 1 parasol for Min is

Accepted Answer

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

Question 7

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 8

The gains from specialization and trade are based on absolute advantage.

Accepted Answer

A) True 
 B)False

Question 9

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.Barb's opportunity cost of testing one computer is setting up

Accepted Answer

A)   4/5 computer and Jim's opportunity cost of testing one computer is setting up 3/4 computer.
B)   4/5 computer and Jim's opportunity cost of testing one computer is setting up 4/3 computers.
C)   5/4 computers and Jim's opportunity cost of testing one computer is setting up 3/4 computer.
D)   5/4 computers and Jim's opportunity cost of testing one computer is setting up 4/3 computers.E) All of the above
F) C) and D)

Question 10

Figure 3-5
Hosne’s Production Possibilities Frontier
 
Merve’s Production Possibilities Frontier

-Refer to Figure 3-5.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) A) and B)
F) None of the above

Question 11

Table 3-17
US and French Production Opportunities
 
-Refer to Table 3-17 The opportunity costs for the US and France are as follows:

Accepted Answer

A)   In the US 1 million gallons of wine costs 1/2 million pounds of cheese and in France 1 million gallons of wine costs 2 million pounds of cheese.
B)   In the US 1 million gallons of wine costs 2 million pounds of cheese and in France 1 million gallons of wine costs 1/2 million pounds of cheese.
C)   In the US 1 million pounds of cheese costs 1/2 million gallons of wine and in France 1 million pounds of cheese costs 2 million gallons of wine.
D)   In the US 1 million pounds of cheese costs 16 million gallons of wine and in France 1 million pounds of cheese costs 8 million gallons of wine.E) B) and D)
F) A) and B)

Question 12

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.
 
-Refer to Table 3-4.The rancher has a comparative advantage in the production of

Accepted Answer

A)   meat.
B)   potatoes.
C)   both goods.
D)   neither good.E) A) and B)
F) B) and D)

Question 13

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 Spain is

Accepted Answer

A)   1/2 unit of cheese.
B)   1/2 hour of labor.
C)   2 units of cheese.
D)   8 hours of labor.E) A) and C)
F) B) and C)

Question 14

Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
 
-Refer to Table 3-6.The opportunity cost of 1 toaster for Miguel is

Accepted Answer

A)   1/2 mixer.
B)   2 hours of labor.
C)   2 mixers.
D)   20 hours of labor.E) None of the above
F) C) and D)

Question 15

A certain cowboy spends 10 hours per day mending fences and herding cattle.For the cowboy,a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day) is called his

Accepted Answer

A)   line of tastes.
B)   trade-off curve.
C)   production possibilities frontier.
D)   consumption possibilities frontier.E) A) and B)
F) None of the above

Question 16

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.Which of the following combinations of cheese and bread could Spain produce in 40 hours?

Accepted Answer

A)   2.25 units of cheese and 4 units of bread.
B)   5.5 units of cheese and 3 units of bread.
C)   7 units of cheese and 1.5 units of bread.
D)   10 units of cheese and 5 units of bread.E) A) and B)
F) C) and D)

Question 17

Figure 3-10
Alice and Betty's Production Possibilities in one 8-hour day.
 Alice’s Production Possibilities Frontier
 
Betty’s Production Possibilities Frontier

-Refer to Figure 3-10.What are Alice and Betty's opportunity costs of 1 pizza?

Accepted Answer

A)   Alice's opportunity cost of 1 pizza is 1/2 of a pitcher of lemonade and Betty's opportunity cost of 1 pizza is 2/3 of a pitcher of lemonade.
B)   Alice's opportunity cost of 1 pizza is 1 pitcher of lemonade and Betty's opportunity cost of 1 pizza is 3 pitchers of lemonade.
C)   Alice's opportunity cost of 1 pizza is 2 pitchers of lemonade and Betty's opportunity cost of 1 pizza is 1.5 pitchers of lemonade.
D)   Alice's opportunity cost of 1 pizza is 400 pitchers of lemonade and Betty's opportunity cost of 1 pizza is 450 pitchers of lemonade.E) A) and B)
F) None of the above

Question 18

The gains from trade are

Accepted Answer

A)   evident in economic models,but seldom observed in the real world.
B)   evident in the real world,but impossible to capture in economic models.
C)   a result of more efficient resource allocation than would be observed in the absence of trade.
D)   based on the principle of absolute advantage.E) A) and D)
F) C) and D)

Question 19

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 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 B)
F) A) and C)

Question 20

Specialization and trade can make everyone better off if a person can obtain goods at prices that are less than that person's opportunity cost.

Accepted Answer

A) True 
 B)False

Exam 3: Interdependence and the Gains From Trade

Figure 3-5 Hosne’s Production Possibilities Frontier Merve’s Production Possibilities Frontier -Refer to Figure 3-5.Hosne's opportunity cost of one purse is

Correct Answer
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Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks.Which of the following is not possible?

Correct Answer
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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.Which of the following combinations of cheese and bread could Spain produce in 40 hours?

Correct Answer
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Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. Alice’s Production Possibilities Frontier Betty’s Production Possibilities Frontier -Refer to Figure 3-10.What are Alice and Betty's opportunity costs of 1 pizza?

Correct Answer
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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 cheese for Spain is

Correct Answer
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A certain cowboy spends 10 hours per day mending fences and herding cattle.For the cowboy,a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day) is called his

Correct Answer
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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.Barb's opportunity cost of testing one computer is setting up

Correct Answer
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Specialization and trade can make everyone better off if a person can obtain goods at prices that are less than that person's opportunity cost.

Correct Answer
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Table 3-4 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. -Refer to Table 3-4.The rancher has a comparative advantage in the production of

Correct Answer
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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 Spain is

Correct Answer
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Correct Answer
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Trade can make everybody better off because it

Correct Answer
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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

Correct Answer
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The gains from trade are

Correct Answer
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The gains from specialization and trade are based on absolute advantage.

Correct Answer
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Correct Answer
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Table 3-17 US and French Production Opportunities -Refer to Table 3-17 The opportunity costs for the US and France are as follows:

Correct Answer
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Table 3-6 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-6.The opportunity cost of 1 toaster for Miguel is

Correct Answer
verified

Table 3-8 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. -Refer to Table 3-8.The opportunity cost of 1 parasol for Min is

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

Figure 3-5 Hosne’s Production Possibilities Frontier Merve’s Production Possibilities Frontier -Refer to Figure 3-5.Hosne's opportunity cost of one purse is

Correct AnswerverifiedShow Answer

Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks.Which of the following is not possible?

Correct AnswerverifiedShow Answer

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.Which of the following combinations of cheese and bread could Spain produce in 40 hours?

Correct AnswerverifiedShow Answer

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. Alice’s Production Possibilities Frontier Betty’s Production Possibilities Frontier -Refer to Figure 3-10.What are Alice and Betty's opportunity costs of 1 pizza?

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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 cheese for Spain is

Correct AnswerverifiedShow Answer

A certain cowboy spends 10 hours per day mending fences and herding cattle.For the cowboy,a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day) is called his

Correct AnswerverifiedShow Answer

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.Barb's opportunity cost of testing one computer is setting up

Correct AnswerverifiedShow Answer

Specialization and trade can make everyone better off if a person can obtain goods at prices that are less than that person's opportunity cost.

Correct AnswerverifiedShow Answer

Table 3-4 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. -Refer to Table 3-4.The rancher has a comparative advantage in the production of

Correct AnswerverifiedShow Answer

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 Spain is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Trade can make everybody better off because it

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

Correct AnswerverifiedShow Answer

The gains from trade are

Correct AnswerverifiedShow Answer

The gains from specialization and trade are based on absolute advantage.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 3-17 US and French Production Opportunities -Refer to Table 3-17 The opportunity costs for the US and France are as follows:

Correct AnswerverifiedShow Answer

Table 3-6 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-6.The opportunity cost of 1 toaster for Miguel is

Correct AnswerverifiedShow Answer

Table 3-8 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. -Refer to Table 3-8.The opportunity cost of 1 parasol for Min is

Correct AnswerverifiedShow Answer

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