Question 1

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. England should specialize in the production of

Accepted Answer

A)  cheese and Spain should specialize in the production of bread.
B)  bread and Spain should specialize in the production of cheese.
C)  both goods and Spain should specialize in the production of neither good.
D)  neither good and Spain should specialize in the production of both goods.E) A) and C)
F) None of the above

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

Figure 3-19
Chile's Production Possibilities Frontier
Colombia's Production Possibilities Frontier  
-Refer to Figure 3-19. Chile's opportunity cost of one pound of soybeans is

Accepted Answer

A)  3/4 pound of coffee and Colombia's opportunity cost of one pound of soybeans is 1/2 pound of coffee.
B)  3/4 pound of coffee and Colombia's opportunity cost of one pound of soybeans is 2 pounds of coffee.
C)  4/3 pounds of coffee and Colombia's opportunity cost of one pound of soybeans is 1/2 pound of coffee.
D)  4/3 pounds of coffee and Colombia's opportunity cost of one pound of soybeans is 2 pounds of coffee.E) A) and C)
F) A) and B)

Question 4

Table 3-15
​  ​
-Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is

Accepted Answer

A)  5 pounds of meat and 4 pounds of potatoes.
B)  6 pounds of meat and 7.5 pounds of potatoes.
C)  7.5 pounds of meat and 6 pounds of potatoes.
D)  10 pounds of meat and 8 pounds of potatoes.E) All of the above
F) B) and D)

Question 5

Table 3-31
​ 
-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) B) and C)
F) C) and D)

Question 6

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

Question 7

Table 3-39
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
​
​  ​
-Refer to Table 3-39. Japan should specialize in the production of

Accepted Answer

A)  cars and import airplanes.
B)  airplanes and import cars.
C)  both goods and import neither good.
D)  neither good and import both goods.E) A) and B)
F) B) and C)

Question 8

Table 3-19 Summary of the Gains from Trade
​ 
-Refer to Table 3-19. The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade. What are Alice and Betty's gains from specialization and trade?

Accepted Answer

A)  Alice gains 7 pitchers of lemonade and 10 pizzas, while Betty gains 13 pitchers of lemonade and 10 pizzas.
B)  Alice gains 200 pitchers of lemonade and 100 pizzas, while Betty gains 180 pitchers of lemonade and 180 pizzas.
C)  Alice gains 207 pitchers of lemonade and 110 pizzas, while Betty gains 193 pitchers of lemonade and 190 pizzas.
D)  Alice gains 400 pitchers of lemonade and 0 pizzas, while Betty gains 0 pitchers of lemonade and 300 pizzas.E) All of the above
F) None of the above

Question 9

Figure 3-16
Hosne's Production Possibilities Frontier
Merve's Production Possibilities Frontier  
-Refer to Figure 3-16. Merve should specialize in the production of

Accepted Answer

A)  purses.
B)  wallets.
C)  both goods.
D)  neither good.E) A) and B)
F) A) and C)

Question 10

Table 3-34
Assume that Indonesia and India can switch between producing rice and bananas at a constant rate.
​ 
-Refer to Table 3-34. At which of the following prices, if any, can India and Indonesia both gain from trade?

Accepted Answer

A)  1/5 units of bananas per unit of rice.
B)  1/3 units of bananas per unit of rice.
C)  3/5 units of bananas per unit of rice.
D)  None of the above.E) None of the above
F) All of the above

Question 11

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) None of the above

Question 12

​Table 3-38 
-​Refer to Table 3-38. Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn or soybeans each state can produce in one growing season. Using the information from the table, Iowa's opportunity cost of producing one bushel of corn is

Accepted Answer

A)  ​1.5 bushels of soybeans and Nebraska's is 2 bushels of soybeans.
B)  ​1.5 bushels of soybeans and Nebraska's is 0.5 bushels of soybeans.
C)  ​0.67 bushels of soybeans and Nebraska's is 2 bushels of soybeans.
D)  ​0.67 bushels of soybeans and Nebraska's is 0.5 bushels of soybeans.E) All of the above
F) C) and D)

Question 13

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) All of the above
F) B) and D)

Question 14

Serena Williams should pay someone else to mow her lawn instead of mowing it herself, unless

Accepted Answer

A)  Serena has an absolute advantage over everyone else in mowing her lawn.
B)  Serena has a comparative advantage over everyone else in mowing her lawn.
C)  Serena's opportunity cost of mowing her lawn is higher than it is for everyone else.
D)  All of the above are correct.E) A) and B)
F) C) and D)

Question 15

Consider two individuals - Howard and Mai - each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases?

Accepted Answer

A)  Howard is very good at knitting sweaters and at cooking tasty food, but Mai's skills in both of these activities are very poor.
B)  Howard is very good at knitting sweaters and at cooking tasty food; Mai is very good at knitting sweaters, but she knows nothing about cooking tasty food.
C)  Howard's skills in knitting sweaters are fairly good, but his skills in cooking tasty food are fairly bad; Mai's skills in knitting sweaters are fairly bad, but her skills in cooking tasty food are fairly good.
D)  Howard's skills are such that he can produce only sweaters, and Mai's skills are such that she can produce only tasty food.E) All of the above
F) B) and C)

Question 16

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

Accepted Answer

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

Question 17

Table 3-41
​
​ 
-Refer to Table 3-41. What is Russia's opportunity cost of one radio?

Accepted Answer

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

Question 18

Table 3-36 
-Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is

Accepted Answer

A)  4 towels and 3 umbrellas.
B)  5 towels and 6 umbrellas.
C)  8 towels and 10 umbrellas.
D)  9 towels and 9 umbrellas.E) A) and B)
F) A) and C)

Question 19

Table 3-31
​ 
-Refer to Table 3-31. In 10 hours,

Accepted Answer

A)  the rancher could produce 2.5 pounds of meat and 1.0 pound of potatoes.
B)  the rancher could produce 1.0 pound of meat and 1.0 pound of potatoes.
C)  the farmer could produce 0.25 pounds of meat and 1.6 pounds of potatoes.
D)  the farmer could produce 0.75 pounds of meat and 1.25 pounds of potatoes.E) All of the above
F) A) and D)

Question 20

Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier  
-Refer to Figure 3-15. If Perry and Jordan switch from each person dividing their time equally between the production of novels and poems to each person spending all of their time producing the good in which they have a comparative advantage, then total production of novels will increase by

Accepted Answer

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

Exam 3: Interdependence and the Gains From Trade

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.

Correct Answer
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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. England should specialize in the production of

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

Correct Answer
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Table 3-19 Summary of the Gains from Trade -Refer to Table 3-19. The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade. What are Alice and Betty's gains from specialization and trade?

Correct Answer
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Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16. Merve should specialize in the production of

Correct Answer
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Consider two individuals - Howard and Mai - each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases?

Correct Answer
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Correct Answer
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Serena Williams should pay someone else to mow her lawn instead of mowing it herself, unless

Correct Answer
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Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19. Chile's opportunity cost of one pound of soybeans is

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

Correct Answer
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Correct Answer
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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
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Table 3-34 Assume that Indonesia and India can switch between producing rice and bananas at a constant rate. -Refer to Table 3-34. At which of the following prices, if any, can India and Indonesia both gain from trade?

Correct Answer
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Table 3-15 -Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is

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

Correct Answer
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Table 3-39 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. -Refer to Table 3-39. Japan should specialize in the production of

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
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Table 3-36 -Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is

Correct Answer
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Table 3-31 -Refer to Table 3-31. In 10 hours,

Correct Answer
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Exam 3: Interdependence and the Gains From Trade

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.

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. England should specialize in the production of

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 3-19 Summary of the Gains from Trade ​ -Refer to Table 3-19. The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade. What are Alice and Betty's gains from specialization and trade?

Correct AnswerverifiedShow Answer

Figure 3-16 Hosne's Production Possibilities Frontier Merve's Production Possibilities Frontier -Refer to Figure 3-16. Merve should specialize in the production of

Correct AnswerverifiedShow Answer

Consider two individuals - Howard and Mai - each of whom would like to wear sweaters and eat tasty food. The gains from trade between Howard and Mai are least obvious in which of the following cases?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Serena Williams should pay someone else to mow her lawn instead of mowing it herself, unless

Correct AnswerverifiedShow Answer

Figure 3-19 Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier -Refer to Figure 3-19. Chile's opportunity cost of one pound of soybeans is

Correct AnswerverifiedShow Answer

Table 3-41 ​ ​ -Refer to Table 3-41. What is Russia's opportunity cost of one radio?

Correct AnswerverifiedShow Answer

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 3-34 Assume that Indonesia and India can switch between producing rice and bananas at a constant rate. ​ -Refer to Table 3-34. At which of the following prices, if any, can India and Indonesia both gain from trade?

Correct AnswerverifiedShow Answer

Table 3-15 ​ ​ -Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production 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

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

Correct AnswerverifiedShow Answer

Table 3-39 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. ​ ​ ​ -Refer to Table 3-39. Japan should specialize in the production of

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 3-36 -Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is

Correct AnswerverifiedShow Answer

Table 3-31 ​ -Refer to Table 3-31. In 10 hours,

Correct AnswerverifiedShow Answer

Correct Answer
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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. England should specialize in the production of

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

Correct Answer
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Table 3-19 Summary of the Gains from Trade -Refer to Table 3-19. The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade. What are Alice and Betty's gains from specialization and trade?

Correct Answer
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Correct Answer
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Correct Answer
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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 Russia's opportunity cost of one radio?

Correct Answer
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Correct Answer
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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
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Table 3-34 Assume that Indonesia and India can switch between producing rice and bananas at a constant rate. -Refer to Table 3-34. At which of the following prices, if any, can India and Indonesia both gain from trade?

Correct Answer
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Table 3-15 -Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is

Correct Answer
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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
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Correct Answer
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Table 3-39 Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. -Refer to Table 3-39. Japan should specialize in the production of

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
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Correct Answer
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Table 3-31 -Refer to Table 3-31. In 10 hours,

Correct Answer
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