Question 1

Table 3-16
The following table contains some production possibilities for an economy for a given month.
 
-Refer to Table 3-16. If the production possibilities frontier is bowed outward, then "?" could be

Accepted Answer

A)   200.
B)   300.
C)   400.
D)   500.E) C) and D)
F) A) and B)

Question 2

Charlotte can produce pork and beans and can switch between producing them at a constant rate. If it takes her 10 hours to produce a pound of pork and 5 hours to produce a pound of beans, what is her opportunity cost of pork and what is her opportunity cost of beans?

Accepted Answer

The opportunity cost of pork i...

Question 3

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 4

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

Question 5

Table 3-12
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 3-12. 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) All of the above
F) B) and D)

Question 6

Suppose there are only two people in the world. Each person's production possibilities frontier also represents his or her consumption possibilities when

Accepted Answer

A)   neither person faces trade-offs.
B)   the frontiers are straight lines.
C)   the frontiers are bowed out.
D)   they choose not to trade with one another.E) A) and D)
F) A) and C)

Question 7

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) A) and C)
F) B) and C)

Question 8

Figure 3-14
Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier
 
-Refer to Figure 3-14. At which of the following prices would both Arturo and Dina gain from trade with each other?

Accepted Answer

A)   12 burritos for 21 tacos
B)   12 burritos for 27 tacos
C)   12 burritos for 36 tacos
D)   Arturo and Dina could not both gain from trade with each other at any price.E) None of the above
F) B) and D)

Question 9

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

Accepted Answer

A)   4/5 purse and Merve's opportunity cost of one wallet is 2/3 purse.
B)   4/5 purse and Merve's opportunity cost of one wallet is 3/2 purses.
C)   5/4 purses and Merve's opportunity cost of one wallet is 2/3 purse.
D)   5/4 purses and Merve's opportunity cost of one wallet is 3/2 purses.E) A) and B)
F) B) and C)

Question 10

If Korea is capable of producing either shoes or soccer balls or some combination of the two, then

Accepted Answer

A)   Korea should specialize in the product in which it has an absolute advantage.
B)   it would be impossible for Korea to have an absolute advantage over another country in both products.
C)   it would be difficult for Korea to benefit from trade with another country if Korea is efficient in the production of both goods.
D)   Korea's opportunity cost of shoes is the inverse of its opportunity cost of soccer balls.E) B) and D)
F) A) and B)

Question 11

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

Question 12

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) A) and B)
F) A) and C)

Question 13

Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Sylvania will now be able to consume a maximum of

Accepted Answer

A)   30 units of corn and 30 units of wheat.
B)   40 units of corn and 30 units of wheat.
C)   40 units of corn and 20 units of wheat.
D)   10 units of corn and 40 units of wheat.E) B) and D)
F) B) and C)

Question 14

Absolute advantage is found by comparing different producers'

Accepted Answer

A)   opportunity costs.
B)   payments to land, labor, and capital.
C)   input requirements per unit of output.
D)   locational and logistical circumstances.E) A) and C)
F) B) and D)

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 Brad's opportunity cost of producing one pound of beef?

Accepted Answer

A)   5/6 bushel of wheat
B)   6/5 bushels of wheat
C)   3/5 bushels of wheat
D)   5/3 bushels of wheatE) A) and B)
F) B) and C)

Question 16

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 17

Which of the following is not correct?

Accepted Answer

A)   The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good.
B)   The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X.
C)   The producer who has the smaller opportunity cost of producing a good is said to have a comparative advantage in producing that good.
D)   The gains from specialization and trade are based not on comparative advantage but on absolute advantage.E) A) and B)
F) A) and C)

Question 18

Figure 3-6
Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier
 
-Refer to Figure 3-6. If the production possibilities frontier shown for Maxine is for 3 hours of work, then how long does it take Maxine to make one pie?

Accepted Answer

A)   1/4 hour
B)   1/3 hour
C)   3 hours
D)   4 hoursE) B) and C)
F) C) and D)

Question 19

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 B)
F) None of the above

Question 20

Figure 3-21
Uzbekistan's Production Possibilities Frontier Azerbaijan's Production Possibilities Frontier 
-Refer to Figure 3-21. Azerbaijan has an absolute advantage in the production of

Accepted Answer

A)   bolts and a comparative advantage in the production of bolts.
B)   bolts and a comparative advantage in the production of nails.
C)   nails and a comparative advantage in the production of bolts.
D)   nails and a comparative advantage in the production of nails.E) B) and C)
F) A) and D)

Exam 3: Interdependence and the Gains From Trade

Which of the following is not correct?

Correct Answer
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Absolute advantage is found by comparing different producers'

Correct Answer
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Suppose there are only two people in the world. Each person's production possibilities frontier also represents his or her consumption possibilities when

Correct Answer
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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
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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 Brad's opportunity cost of producing one pound of beef?

Correct Answer
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Figure 3-21 Uzbekistan's Production Possibilities Frontier Azerbaijan's Production Possibilities Frontier -Refer to Figure 3-21. Azerbaijan has an absolute advantage in the production of

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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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
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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
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Total output in an economy increases when each person specializes because

Correct Answer
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Figure 3-6 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier -Refer to Figure 3-6. If the production possibilities frontier shown for Maxine is for 3 hours of work, then how long does it take Maxine to make one pie?

Correct Answer
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Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14. At which of the following prices would both Arturo and Dina gain from trade with each other?

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 wallet is

Correct Answer
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Charlotte can produce pork and beans and can switch between producing them at a constant rate. If it takes her 10 hours to produce a pound of pork and 5 hours to produce a pound of beans, what is her opportunity cost of pork and what is her opportunity cost of beans?

Correct Answer
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The opportunity cost of pork i...
View Answer

Correct Answer
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If Korea is capable of producing either shoes or soccer balls or some combination of the two, then

Correct Answer
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Table 3-16 The following table contains some production possibilities for an economy for a given month. -Refer to Table 3-16. If the production possibilities frontier is bowed outward, then "?" could be

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Exam 3: Interdependence and the Gains From Trade

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Absolute advantage is found by comparing different producers'

Correct AnswerverifiedShow Answer

Suppose there are only two people in the world. Each person's production possibilities frontier also represents his or her consumption possibilities when

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

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 Brad's opportunity cost of producing one pound of beef?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 3-21 Uzbekistan's Production Possibilities Frontier Azerbaijan's Production Possibilities Frontier -Refer to Figure 3-21. Azerbaijan has an absolute 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

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

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

Total output in an economy increases when each person specializes because

Correct AnswerverifiedShow Answer

Figure 3-6 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier -Refer to Figure 3-6. If the production possibilities frontier shown for Maxine is for 3 hours of work, then how long does it take Maxine to make one pie?

Correct AnswerverifiedShow Answer

Figure 3-14 Arturo's Production Possibilities Frontier Dina's Production Possibilities Frontier -Refer to Figure 3-14. At which of the following prices would both Arturo and Dina gain from trade with each other?

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 wallet is

Correct AnswerverifiedShow Answer

Charlotte can produce pork and beans and can switch between producing them at a constant rate. If it takes her 10 hours to produce a pound of pork and 5 hours to produce a pound of beans, what is her opportunity cost of pork and what is her opportunity cost of beans?

Correct AnswerverifiedThe opportunity cost of pork i...View AnswerShow Answer

Correct AnswerverifiedShow Answer

If Korea is capable of producing either shoes or soccer balls or some combination of the two, then

Correct AnswerverifiedShow Answer

Table 3-16 The following table contains some production possibilities for an economy for a given month. -Refer to Table 3-16. If the production possibilities frontier is bowed outward, then "?" could be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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The opportunity cost of pork i...
View Answer

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