Question 1

Table 3-5
Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.
 
-Refer to Table 3-5. Which of the following combinations of coolers and radios could Aruba produce in one 40- hour week?

Accepted Answer

A)   3 coolers and 7 radios
B)   5 coolers and 6 radios
C)   11 coolers and 4 radios
D)   13 coolers and 3 radiosE) A) and B)
F) B) and D)

Question 2

Figure 3-4
Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier
 
-Refer to Figure 3-4. If Lisa and Bryce both spend all of their time producing jackets, then total production is

Accepted Answer

A)   2 jackets.
B)   6 jackets.
C)   24 jackets.
D)   26 jackets.E) B) and D)
F) B) and C)

Question 3

Table 3-8
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
 
-Refer to Table 3-8. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Spain. If we were to do this, measuring bread along the horizontal axis, then

Accepted Answer

A)   the slope of England's production possibilities frontier would be ­0.67 and the slope of Spain's production possibilities frontier would be -0.5.
B)   the slope of England's production possibilities frontier would be ­1.5 and the slope of Spain's production possibilities frontier would be -2.
C)   the slope of England's production possibilities frontier would be ­.75 and the slope of Spain's production possibilities frontier would be -1.
D)   the slope of England's production possibilities frontier would be ­2 and the slope of Spain's production possibilities frontier would be -.5.E) A) and B)
F) None of the above

Question 4

For both parties to gain from trade, the price at which they trade must lie between the two opportunity costs.

Accepted Answer

A) True 
 B)False

Question 5

It is possible for the U.S. to gain from trade with Germany even if it takes U.S. workers fewer hours to produce every good than it takes German workers.

Accepted Answer

A) True 
 B)False

Question 6

An economy's production possibilities frontier is also its consumption possibilities frontier

Accepted Answer

A)   under all circumstances.
B)   under no circumstances.
C)   when the economy is self-sufficient.
D)   when the rate of tradeoff between the two goods being produced is constant.E) All of the above
F) A) and C)

Question 7

Which of the following statements about comparative advantage is not true?

Accepted Answer

A)   Comparative advantage is determined by which person or group of persons can produce a given quantity of a good using the fewest resources.
B)   The principle of comparative advantage applies to countries as well as to individuals.
C)   Economists use the principle of comparative advantage to emphasize the potential benefits of free trade.
D)   A country may have a comparative advantage in producing a good, even though it lacks an absolute advantage in producing that good.E) A) and B)
F) A) and C)

Question 8

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 B)

Question 9

Table 3-31
   -Refer to Table 3-31. For the farmer, the opportunity cost of 15 pounds of meat is A)  12 pounds of potatoes. B)  16 pounds of potatoes. C)  20 pounds of potatoes. D)  24 pounds of potatoes." class="answers-bank-image d-inline" rel="preload" >  
-Refer to Table 3-31. For the farmer, the opportunity cost of 15 pounds of meat is

Accepted Answer

A)   12 pounds of potatoes.
B)   16 pounds of potatoes.
C)   20 pounds of potatoes.
D)   24 pounds of potatoes.E) A) and B)
F) A) and C)

Question 10

Table 3-3
Production Opportunities
 
-Refer to Table 3-3. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for France. If we were to do this, measuring wine along the horizontal axis, then

Accepted Answer

A)   the slope of England's production possibilities frontier would be ­4 and the slope of France's production possibilities frontier would be -0.4.
B)   the slope of England's production possibilities frontier would be ­0.25 and the slope of France's production possibilities frontier would be -2.5.
C)   the slope of England's production possibilities frontier would be 0.25 and the slope of France's production possibilities frontier would be 2.5.
D)   the slope of England's production possibilities frontier would be 4 and the slope of France's production possibilities frontier would be 0.4.E) None of the above
F) B) and C)

Question 11

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) B) and D)
F) None of the above

Question 12

Table 3-36
 
-Refer to Table 3-36. What is Antigua's opportunity cost of one umbrella?

Accepted Answer

A)   3/5 towels
B)   2/3 towels
C)   3/2 towels
D)   5/3 towelsE) B) and C)
F) All of the above

Question 13

Figure 3-7
Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier 
-Refer to Figure 3-7. If Bintu must work 2 hours to make each cup, then her production possibilities frontier is based on how many hours of work?

Accepted Answer

A)   2 hours
B)   4 hours
C)   8 hours
D)   16 hoursE) C) and D)
F) A) and B)

Question 14

Economists use the term to refer to the ability to produce a good at a lower opportunity cost than another producer.

Accepted Answer

comparativ...

Question 15

Figure 3-4
Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier
 
-Refer to Figure 3-4. If Bryce must work 4 months to produce each sweater, then his production possibilities frontier is based on how many months of work?

Accepted Answer

A)   4 months
B)   8 months
C)   12 months
D)   16 monthsE) A) and C)
F) B) and C)

Question 16

Figure 3-1
Panel (a)  Panel (b)  
-Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches depends on how many chairs and couches are being produced in

Accepted Answer

A)   Panel (a) .
B)   Panel (b) .
C)   both Panel (a)  and Panel (b) .
D)   neither Panel (a)  nor Panel (b) .E) B) and C)
F) A) and D)

Question 17

Figure 3-1
Panel (a)  Panel (b)  
-Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches is constant in

Accepted Answer

A)   Panel (a) .
B)   Panel (b) .
C)   both Panel (a)  and Panel (b) .
D)   neither Panel (a)  nor Panel (b) .E) A) and D)
F) A) and C)

Question 18

Table 3-23
Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.
 
-Refer to Table 3-23. The farmer has a comparative advantage in the production of

Accepted Answer

A)   pork.
B)   tomatoes.
C)   both goods.
D)   neither good.E) C) and D)
F) A) and B)

Question 19

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. At which of the following prices would both Huang and Min gain from trade with each other?

Accepted Answer

A)   15 parasols for 10 plates
B)   15 parasols for 6 plates
C)   15 parasols for 3 plates
D)   Huang and Min could not both gain from trade with each other at any price.E) A) and C)
F) C) and D)

Question 20

Figure 3-10
Alice and Betty's Production Possibilities in one 8­hour day.
Alice's Production Possibilities Frontier Betty's Production Possibilities Frontier
 
-Refer to Figure 3-10. If point A represents Alice's current production and point B represents Betty's current production, under what circumstances can both Alice and Betty benefit from specialization and trade?

Accepted Answer

A)   Alice produces more pizzas and Betty produces more lemonade.
B)   Alice produces more lemonade and Betty produces more pizzas.
C)   Both Alice and Betty produce only pizzas.
D)   There are no circumstances under which both Alice and Betty can benefit from specialization and trade.E) C) and D)
F) A) and C)

Exam 3: Interdependence and the Gains From Trade

Table 3-23 Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. -Refer to Table 3-23. The farmer has a comparative advantage in the production of

Correct Answer
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Figure 3-7 Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier -Refer to Figure 3-7. If Bintu must work 2 hours to make each cup, then her production possibilities frontier is based on how many hours of work?

Correct Answer
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Figure 3-1 Panel (a) Panel (b) -Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches is constant in

Correct Answer
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Figure 3-4 Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier -Refer to Figure 3-4. If Lisa and Bryce both spend all of their time producing jackets, then total production is

Correct Answer
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Figure 3-4 Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier -Refer to Figure 3-4. If Bryce must work 4 months to produce each sweater, then his production possibilities frontier is based on how many months of work?

Correct Answer
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Table 3-5 Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. -Refer to Table 3-5. Which of the following combinations of coolers and radios could Aruba produce in one 40- hour week?

Correct Answer
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For both parties to gain from trade, the price at which they trade must lie between the two opportunity costs.

Correct Answer
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Which of the following statements about comparative advantage is not true?

Correct Answer
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An economy's production possibilities frontier is also its consumption possibilities frontier

Correct Answer
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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
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Correct Answer
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Figure 3-1 Panel (a) Panel (b) -Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches depends on how many chairs and couches are being produced in

Correct Answer
verified

Economists use the term to refer to the ability to produce a good at a lower opportunity cost than another producer.

Correct Answer
verified
comparativ...
View Answer

It is possible for the U.S. to gain from trade with Germany even if it takes U.S. workers fewer hours to produce every good than it takes German workers.

Correct Answer
verified

Table 3-36 -Refer to Table 3-36. What is Antigua's opportunity cost of one umbrella?

Correct Answer
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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 3-3 Production Opportunities -Refer to Table 3-3. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for France. If we were to do this, measuring wine along the horizontal axis, then

Correct Answer
verified

Table 3-31 -Refer to Table 3-31. For the farmer, the opportunity cost of 15 pounds of meat is

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. At which of the following prices would both Huang and Min gain from trade with each other?

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

Table 3-23 Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. -Refer to Table 3-23. The farmer has a comparative advantage in the production of

Correct AnswerverifiedShow Answer

Figure 3-7 Bintu's Production Possibilities Frontier Juba's Production Possibilities Frontier -Refer to Figure 3-7. If Bintu must work 2 hours to make each cup, then her production possibilities frontier is based on how many hours of work?

Correct AnswerverifiedShow Answer

Figure 3-1 Panel (a) Panel (b) -Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches is constant in

Correct AnswerverifiedShow Answer

Figure 3-4 Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier -Refer to Figure 3-4. If Lisa and Bryce both spend all of their time producing jackets, then total production is

Correct AnswerverifiedShow Answer

Figure 3-4 Lisa's Production Possibilities Frontier Bryce's Production Possibilities Frontier -Refer to Figure 3-4. If Bryce must work 4 months to produce each sweater, then his production possibilities frontier is based on how many months of work?

Correct AnswerverifiedShow Answer

Table 3-5 Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. -Refer to Table 3-5. Which of the following combinations of coolers and radios could Aruba produce in one 40- hour week?

Correct AnswerverifiedShow Answer

For both parties to gain from trade, the price at which they trade must lie between the two opportunity costs.

Correct AnswerverifiedShow Answer

Which of the following statements about comparative advantage is not true?

Correct AnswerverifiedShow Answer

An economy's production possibilities frontier is also its consumption possibilities frontier

Correct AnswerverifiedShow 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

Correct AnswerverifiedShow Answer

Figure 3-1 Panel (a) Panel (b) -Refer to Figure 3-1. The rate of tradeoff between producing chairs and producing couches depends on how many chairs and couches are being produced in

Correct AnswerverifiedShow Answer

Economists use the term to refer to the ability to produce a good at a lower opportunity cost than another producer.

Correct Answerverifiedcomparativ...View AnswerShow Answer

It is possible for the U.S. to gain from trade with Germany even if it takes U.S. workers fewer hours to produce every good than it takes German workers.

Correct AnswerverifiedShow Answer

Table 3-36 -Refer to Table 3-36. What is Antigua's opportunity cost of one umbrella?

Correct AnswerverifiedShow Answer

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 3-3 Production Opportunities -Refer to Table 3-3. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for France. If we were to do this, measuring wine along the horizontal axis, then

Correct AnswerverifiedShow Answer

Table 3-31 -Refer to Table 3-31. For the farmer, the opportunity cost of 15 pounds of meat is

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. At which of the following prices would both Huang and Min gain from trade with each other?

Correct AnswerverifiedShow Answer

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