Question 1

If Wrex can produce more math problems per hour and more book reports per hour than Maxine can, then Wrex cannot gain from trading math problems and book reports with Maxine.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Table 3-32
US and French Production Opportunities
 
-Refer to Table 3-32 France has an absolute advantage in the production of

Accepted Answer

A)   wine.
B)   cheese.
C)   both wine and cheese.
D)   neither wine nor cheese.E) A) and D)
F) A) and C)

Question 4

Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on the United States' production possibilities frontier?

Accepted Answer

A)   (200 airplanes, 5,000 cars)  and (150 airplanes, 4,000 cars) 
B)   (200 airplanes, 12,500 cars)  and (150 airplanes, 15,000 cars) 
C)   (300 airplanes, 15,000 cars)  and (200 airplanes, 25,000 cars) 
D)   (300 airplanes, 25,000 cars)  and (200 airplanes, 40,000 cars) E) A) and D)
F) A) and C)

Question 5

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 6

Harry is a computer company executive, earning $200 per hour managing the company and promoting its products. His daughter Quinn is a high school student, earning $6 per hour helping her grandmother on the farm. Harry's computer is broken. He can repair it himself in one hour. Quinn can repair it in 10 hours. Harry's opportunity cost of repairing the computer is lower than Quinn's.

Accepted Answer

A) True 
 B)False

Question 7

The opportunity cost of an item is

Accepted Answer

A)   the number of hours that one must work in order to buy one unit of the item.
B)   what you give up to get that item.
C)   always less than the dollar value of the item.
D)   always greater than the cost of producing the item.E) C) and D)
F) A) and B)

Question 8

If Shawn can produce more donuts in one day than Sue can produce in one day, then

Accepted Answer

A)   Shawn has a comparative advantage in the production of donuts.
B)   Sue has a comparative advantage in the production of donuts.
C)   Shawn has an absolute advantage in the production of donuts.
D)   Sue has an absolute advantage in the production of donuts.E) All of the above
F) B) and D)

Question 9

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 Maya produce in 60 hours?

Accepted Answer

A)   5 mixers and 12 toasters.
B)   6 mixers and 4 toasters.
C)   7 mixers and 7 toasters.
D)   8 mixers and 5 toasters.E) All of the above
F) C) and D)

Question 10

Table 3-17
The following table contains some production possibilities for an economy for a given year.
 
-Refer to Table 3-17. If the production possibilities frontier is bowed outward, then "?" could be

Accepted Answer

A)   180.
B)   200.
C)   220
D)   240.E) A) and B)
F) B) and C)

Question 11

Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible?

Accepted Answer

A)   Kelly has a comparative advantage in repairing cars and David has a comparative advantage in cooking meals.
B)   Kelly has an absolute advantage in repairing cars and David has an absolute advantage in cooking meals.
C)   Kelly has a comparative advantage in repairing cars and in cooking meals.
D)   David has an absolute advantage in repairing cars and in cooking meals.E) C) and D)
F) A) and B)

Question 12

The principle of comparative advantage states that, regardless of the price at which trade takes place, everyone will benefit from trade if they specialize in the production of the good for which they have a comparative advantage.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 400 bushels of corn and 100 bushels of oats, while Oatland will produce and consume 60 bushels of corn and 400 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by

Accepted Answer

A)   280 bushels of corn and 450 bushels of oats.
B)   340 bushels of corn and 500 bushels of oats.
C)   360 bushels of corn and 520 bushels of oats.
D)   360 bushels of corn and 640 bushels of oats.E) A) and B)
F) None of the above

Question 14

Figure 3-15
Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier
 
-Refer to Figure 3-15. The opportunity cost of 1 novel for Jordan is

Accepted Answer

A)   1/3 poem.
B)   3 poems.
C)   4 poems.
D)   12 poems.E) C) and D)
F) All of the above

Question 15

Table 3-20
Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate.
 
-Refer to Table 3-20. What is Theresa's opportunity cost of producing one bushel of wheat?

Accepted Answer

A)   5/6 pound of beef
B)   6/5 pound of beef
C)   3/5 pound of beef
D)   5/3 pounds of beefE) C) and D)
F) None of the above

Question 16

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. The opportunity cost of 1 mixer for Maya is

Accepted Answer

A)   0.625 toasters.
B)   5 hours of labor.
C)   1.6 toasters.
D)   20 hours of labor.E) A) and D)
F) C) and D)

Question 17

Table 3-15
 
-Refer to Table 3-15. Which of the following combinations of meat and potatoes could the rancher not produce in 40 hours?

Accepted Answer

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

Question 18

Total output in an economy increases when each person specializes because

Accepted Answer

A)   there is less competition for the same resources.
B)   each person spends more time producing that product in which he or she has a comparative advantage.
C)   a wider variety of products will be produced within each country due to specialization.
D)   government necessarily plays a larger role in the economy due to specialization.E) A) and D)
F) None of the above

Question 19

Table 3-31
   -Refer to Table 3-31. For the farmer, 12.8 pounds of 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." class="answers-bank-image d-inline" rel="preload" >  
-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) C) and D)
F) A) and D)

Question 20

The gains from specialization and trade are based on advantage.

Accepted Answer

The answer of The gains from specialization and trade are...

Exam 3: Interdependence and the Gains From Trade

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. The opportunity cost of 1 mixer for Maya is

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

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

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

Correct Answer
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Table 3-17 The following table contains some production possibilities for an economy for a given year. -Refer to Table 3-17. If the production possibilities frontier is bowed outward, then "?" could be

Correct Answer
verified

Table 3-32 US and French Production Opportunities -Refer to Table 3-32 France has an absolute advantage in the production of

Correct Answer
verified

Table 3-20 Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-20. What is Theresa's opportunity cost of producing one bushel of wheat?

Correct Answer
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The principle of comparative advantage states that, regardless of the price at which trade takes place, everyone will benefit from trade if they specialize in the production of the good for which they have a comparative advantage.

Correct Answer
verified

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

Correct Answer
verified

If Wrex can produce more math problems per hour and more book reports per hour than Maxine can, then Wrex cannot gain from trading math problems and book reports with Maxine.

Correct Answer
verified

Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible?

Correct Answer
verified

If Shawn can produce more donuts in one day than Sue can produce in one day, then

Correct Answer
verified

Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on the United States' production possibilities frontier?

Correct Answer
verified

Table 3-15 -Refer to Table 3-15. Which of the following combinations of meat and potatoes could the rancher not produce in 40 hours?

Correct Answer
verified

Total output in an economy increases when each person specializes because

Correct Answer
verified

The opportunity cost of an item is

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 Maya produce in 60 hours?

Correct Answer
verified

Figure 3-15 Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier -Refer to Figure 3-15. The opportunity cost of 1 novel for Jordan is

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

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. The opportunity cost of 1 mixer for Maya is

Correct AnswerverifiedShow Answer

The gains from specialization and trade are based on advantage.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 3-17 The following table contains some production possibilities for an economy for a given year. -Refer to Table 3-17. If the production possibilities frontier is bowed outward, then "?" could be

Correct AnswerverifiedShow Answer

Table 3-32 US and French Production Opportunities -Refer to Table 3-32 France has an absolute advantage in the production of

Correct AnswerverifiedShow Answer

Table 3-20 Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-20. What is Theresa's opportunity cost of producing one bushel of wheat?

Correct AnswerverifiedShow Answer

The principle of comparative advantage states that, regardless of the price at which trade takes place, everyone will benefit from trade if they specialize in the production of the good for which they have a comparative advantage.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If Wrex can produce more math problems per hour and more book reports per hour than Maxine can, then Wrex cannot gain from trading math problems and book reports with Maxine.

Correct AnswerverifiedShow Answer

Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible?

Correct AnswerverifiedShow Answer

If Shawn can produce more donuts in one day than Sue can produce in one day, then

Correct AnswerverifiedShow Answer

Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on the United States' production possibilities frontier?

Correct AnswerverifiedShow Answer

Table 3-15 -Refer to Table 3-15. Which of the following combinations of meat and potatoes could the rancher not produce in 40 hours?

Correct AnswerverifiedShow Answer

Total output in an economy increases when each person specializes because

Correct AnswerverifiedShow Answer

The opportunity cost of an item is

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 Maya produce in 60 hours?

Correct AnswerverifiedShow Answer

Figure 3-15 Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier -Refer to Figure 3-15. The opportunity cost of 1 novel for Jordan is

Correct AnswerverifiedShow Answer

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