Question 1

Table 3-7
Barb and Ren run a business that sets up and tests computers. Assume that Barb and Ren can switch between setting up and testing computers at a constant rate. The following table applies.
​
​
 
-Refer to Table 3-7. The number of minutes needed by Barb to test a computer is

Accepted Answer

A)  36.
B)  48.
C)  30.
D)  64.E) A) and D)
F) All of the above

Question 2

Economists use the term ______ to refer to the ability to produce a good using fewer inputs than another producer.

Accepted Answer

The answer of Economists use the term ______ to refer...

Question 3

Scenario 3-1
​
In country A a worker who works 40 hours can produce 200 pounds of rice or 100 pounds of broccoli. In country B a worker who works 40 hours can produce 160 pounds of rice or 120 pounds of broccoli.
-Refer to Scenario 3-1. Which country, if either, has a comparative advantage producing rice? Defend your answer using the numbers given.

Accepted Answer

Country A has a comparative ad...

Question 4

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then

Accepted Answer

A)  Iowa has a comparative advantage in the production of corn.
B)  Iowa has an absolute advantage in the production of corn.
C)  Iowa should import corn from Oklahoma.
D)  Oklahoma should produce just enough corn to satisfy its own residents' demands.E) A) and B)
F) B) and D)

Question 5

Figure 3-7
Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier   ​
-Refer to Figure 3-7. Who has a comparative advantage in making cookies?

Accepted Answer

The answer of Figure 3-7
Mary's Production Possibilities Frontier Kate's Production...

Question 6

Two countries can achieve gains from trade even if one country has an absolute advantage in the production of both goods.

Accepted Answer

A) True 
 B)False

Question 7

Figure 3-7
Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier   ​
-Refer to Figure 3-7. What is Kate's opportunity cost of one muffin?

Accepted Answer

The answer of Figure 3-7
Mary's Production Possibilities Frontier Kate's Production...

Question 8

Figure 3-4
  
-Refer to Figure 3-4. If Betty produces only pizzas, she can produce

Accepted Answer

A)  150 pies per day.
B)  -300 pies per day.
C)  300 pies per day.
D)  450 pies per day.E) C) and D)
F) A) and B)

Question 9

Suppose that in one hour Dewey can produce either 10 bushels of corn or 20 yards of cloth. Dewey's opportunity cost of producing one bushel of corn is 1/2 yard of cloth.

Accepted Answer

A) True 
 B)False

Question 10

Adam Smith was the author of the 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations.

Accepted Answer

A) True 
 B)False

Question 11

If one producer has the absolute advantage in the production of all goods, then that same producer will have the comparative advantage in the production of all goods as well.

Accepted Answer

A) True 
 B)False

Question 12

Zora can produce 4 quilts in a week and she can produce 1 corporate website in a week. Lou can produce 9 quilts in a week and he can produce 2 corporate websites in a week. Zora has the comparative advantage in quilts and the absolute advantage in neither good, while Lou has the comparative advantage in corporate websites and the absolute advantage in both goods.

Accepted Answer

A) True 
 B)False

Question 13

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 14

With eight hours of work Elmer can produce 20 pounds of carrots or 15 pounds of peas. With eight hours Bugs can produce 10 pounds of carrots or 7.5 pounds of peas. Can Elmer and Bugs gain from trade? Defend your answer.

Accepted Answer

No, their opportunit...

Question 15

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour. Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour. Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Accepted Answer

Frank has the comparative adva...

Question 16

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that

Accepted Answer

A)  in order to consume beyond its PPF, the United States should produce more pork than what it requires and export some of it to Mexico.
B)  in order to consume beyond its PPF, the United States should produce a moderate quantity of pork and import the remainder of what it requires from Mexico.
C)  in order to consume beyond its PPF, the United States should refrain altogether from producing pork and import all of what it requires from Mexico.
D)  Mexico has nothing to gain from importing United States pork.E) A) and C)
F) None of the above

Question 17

If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.

Accepted Answer

A) True 
 B)False

Question 18

Both Jarek and Kalene produce hair scarves and necklaces. However, Kalene is better at producing both goods. In this case, trade could

Accepted Answer

A)  benefit both Kalene and Jarek.
B)  benefit Kalene, but not Jarek.
C)  benefit Jarek, but not Kalene.
D)  benefit neither Kalene nor Jarek.E) B) and C)
F) A) and C)

Question 19

Figure 3-3
  
-Refer to Figure 3-3. If Tanek and Kalene both spend all of their time producing burritos, then total production is

Accepted Answer

A)  0 tacos and 400 burritos.
B)  400 tacos and 250 burritos.
C)  0 tacos and 500 burritos.
D)  800 tacos and 500 burritos.E) C) and D)
F) B) and D)

Question 20

Figure 3-2
 
-Refer to Figure 3-2. If the production possibilities frontier shown is for 48 hours of production, then how long does it take Venezuela to make one pound of cashews?

Accepted Answer

A)    15\frac { 1 } { 5 }51​  hour
B)    13\frac { 1 } { 3 }31​  hour
C)  3 hours
D)  5 hours E) A) and B)
F) B) and C)

Exam 3: Interdependence and the Gains From Trade

Correct Answer
verified
Country A has a comparative ad...
View Answer

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour. Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour. Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Correct Answer
verified
Frank has the comparative adva...
View Answer

Economists use the term ______ to refer to the ability to produce a good using fewer inputs than another producer.

Correct Answer
verified

Figure 3-7 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-7. What is Kate's opportunity cost of one muffin?

Correct Answer
verified

With eight hours of work Elmer can produce 20 pounds of carrots or 15 pounds of peas. With eight hours Bugs can produce 10 pounds of carrots or 7.5 pounds of peas. Can Elmer and Bugs gain from trade? Defend your answer.

Correct Answer
verified
No, their opportunit...
View Answer

If one producer has the absolute advantage in the production of all goods, then that same producer will have the comparative advantage in the production of all goods as well.

Correct Answer
verified

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then

Correct Answer
verified

Correct Answer
verified

Adam Smith was the author of the 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations.

Correct Answer
verified

Both Jarek and Kalene produce hair scarves and necklaces. However, Kalene is better at producing both goods. In this case, trade could

Correct Answer
verified

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that

Correct Answer
verified

Figure 3-4 -Refer to Figure 3-4. If Betty produces only pizzas, she can produce

Correct Answer
verified

Figure 3-3 -Refer to Figure 3-3. If Tanek and Kalene both spend all of their time producing burritos, then total production is

Correct Answer
verified

Figure 3-7 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-7. Who has a comparative advantage in making cookies?

Correct Answer
verified

Suppose that in one hour Dewey can produce either 10 bushels of corn or 20 yards of cloth. Dewey's opportunity cost of producing one bushel of corn is 1/2 yard of cloth.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.

Correct Answer
verified

Table 3-7 Barb and Ren run a business that sets up and tests computers. Assume that Barb and Ren can switch between setting up and testing computers at a constant rate. The following table applies. -Refer to Table 3-7. The number of minutes needed by Barb to test a computer is

Correct Answer
verified

Two countries can achieve gains from trade even if one country has an absolute advantage in the production of both goods.

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

Correct AnswerverifiedCountry A has a comparative ad...View AnswerShow Answer

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour. Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour. Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Correct AnswerverifiedFrank has the comparative adva...View AnswerShow Answer

Economists use the term ______ to refer to the ability to produce a good using fewer inputs than another producer.

Correct AnswerverifiedShow Answer

Figure 3-7 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier ​ -Refer to Figure 3-7. What is Kate's opportunity cost of one muffin?

Correct AnswerverifiedShow Answer

With eight hours of work Elmer can produce 20 pounds of carrots or 15 pounds of peas. With eight hours Bugs can produce 10 pounds of carrots or 7.5 pounds of peas. Can Elmer and Bugs gain from trade? Defend your answer.

Correct AnswerverifiedNo, their opportunit...View AnswerShow Answer

If one producer has the absolute advantage in the production of all goods, then that same producer will have the comparative advantage in the production of all goods as well.

Correct AnswerverifiedShow Answer

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then

Correct AnswerverifiedShow Answer

Figure 3-2 -Refer to Figure 3-2. If the production possibilities frontier shown is for 48 hours of production, then how long does it take Venezuela to make one pound of cashews?

Correct AnswerverifiedShow Answer

Adam Smith was the author of the 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations.

Correct AnswerverifiedShow Answer

Both Jarek and Kalene produce hair scarves and necklaces. However, Kalene is better at producing both goods. In this case, trade could

Correct AnswerverifiedShow Answer

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that

Correct AnswerverifiedShow Answer

Figure 3-4 -Refer to Figure 3-4. If Betty produces only pizzas, she can produce

Correct AnswerverifiedShow Answer

Figure 3-3 -Refer to Figure 3-3. If Tanek and Kalene both spend all of their time producing burritos, then total production is

Correct AnswerverifiedShow Answer

Figure 3-7 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier ​ -Refer to Figure 3-7. Who has a comparative advantage in making cookies?

Correct AnswerverifiedShow Answer

Suppose that in one hour Dewey can produce either 10 bushels of corn or 20 yards of cloth. Dewey's opportunity cost of producing one bushel of corn is 1/2 yard of cloth.

Correct AnswerverifiedShow Answer

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

If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.

Correct AnswerverifiedShow Answer

Table 3-7 Barb and Ren run a business that sets up and tests computers. Assume that Barb and Ren can switch between setting up and testing computers at a constant rate. The following table applies. ​ ​ -Refer to Table 3-7. The number of minutes needed by Barb to test a computer is

Correct AnswerverifiedShow Answer

Two countries can achieve gains from trade even if one country has an absolute advantage in the production of both goods.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Country A has a comparative ad...
View Answer

Correct Answer
verified
Frank has the comparative adva...
View Answer

Correct Answer
verified

Figure 3-7 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-7. What is Kate's opportunity cost of one muffin?

Correct Answer
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Correct Answer
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No, their opportunit...
View Answer

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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Correct Answer
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Correct Answer
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Figure 3-7 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-7. Who has a comparative advantage in making cookies?

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 3-7 Barb and Ren run a business that sets up and tests computers. Assume that Barb and Ren can switch between setting up and testing computers at a constant rate. The following table applies. -Refer to Table 3-7. The number of minutes needed by Barb to test a computer is

Correct Answer
verified

Correct Answer
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