Question 1

Figure 3-4
   
-Refer to Figure 3-4. The opportunity cost of 1 poem for Perry is

Accepted Answer

A)   1/12 novel.
B)   1/6 novel.
C)   2 novels.
D)   6 novels.E) B) and C)
F) A) and B)

Question 2

Figure 3-4
   
-Refer to Figure 3-4. 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) B) and D)
F) A) and B)

Question 3

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 4

Figure 3-8
   
-Refer to Figure 3-8. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of pounds of coffee and pounds of soybeans could Chile and Colombia together not make in a given day?

Accepted Answer

A)   4 pounds of coffee and 17 pounds of soybeans
B)   8 pounds of coffee and 14 pounds of soybeans
C)   16 pounds of coffee and 9 pounds of soybeans
D)   24 pounds of coffee and 3 pounds of soybeansE) All of the above
F) None of the above

Question 5

Table 3-9
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 3-9. Barb's opportunity cost of testing one computer is setting up

Accepted Answer

A)   4/5 computer and Jim's opportunity cost of testing one computer is setting up 3/4 computer.
B)   4/5 computer and Jim's opportunity cost of testing one computer is setting up 4/3 computers.
C)   5/4 computers and Jim's opportunity cost of testing one computer is setting up 3/4 computer.
D)   5/4 computers and Jim's opportunity cost of testing one computer is setting up 4/3 computers.E) B) and C)
F) A) and C)

Question 6

Table 3-12
 
-Refer to Table 3-1. For the farmer, the opportunity cost of 1 pound of potatoes is

Accepted Answer

A)   0.625 pound of meat.
B)   1.0 pounds of meat.
C)   1.6 pounds of meat.
D)   3.2 pounds of meat.E) All of the above
F) A) and B)

Question 7

The only two countries in the world, Alpha and Omega, face the following production possibilities frontiers.
Alpha's Production Possibilities Frontier
Omega's Production Possibilities Frontier
a.Assume that each country decides to use half of its resources in the production of each good. Show these points on the graphs for each country as point A.
b.If these countries choose not to trade, what would be the total world production of popcorn and peanuts?
c.Now suppose that each country decides to specialize in the good in which each has a comparative advantage. By specializing, what is the total world production of each product now?
d.If each country decides to trade 100 units of popcorn for 100 units of peanuts, show on the graphs the gain each country would receive from trade. Label these points B.

Accepted Answer

Alpha's Production Possibilities Frontie...

Question 8

What must be given up to obtain an item is called

Accepted Answer

A)   out-of-pocket cost.
B)   comparative worth.
C)   opportunity cost.
D)   absolute value.E) A) and B)
F) B) and C)

Question 9

Figure 3-5
   
-Refer to Figure 3-5. At which of the following prices would both Hosne and Merve gain from trade with each other?

Accepted Answer

A)   5 wallets for 1.25 purses
B)   5 wallets for 2.5 purses
C)   5 wallets for 3.75 purses
D)   Hosne and Merve could not both gain from trade with each other at any price.E) None of the above
F) A) and C)

Question 10

Figure 3-7
   
-Refer to Figure 3-7. If Bintu and Juba each divides her time equally between making bowls and making cups, then total production is

Accepted Answer

A)   2 bowls and 6 cups.
B)   3 bowls and 7 cups.
C)   4 bowls and 8 cups.
D)   6 bowls and 14 cups.E) A) and B)
F) All of the above

Question 11

Table 3-9
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 3-9. Jim has an absolute advantage in

Accepted Answer

A)   both setting up and testing computers and a comparative advantage in setting up computers.
B)   both setting up and testing computers and a comparative advantage in testing computers.
C)   neither setting up nor testing computers and a comparative advantage in setting up computers.
D)   neither setting up nor testing computers and a comparative advantage in testing computers.E) All of the above
F) A) and B)

Question 12

Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day, and a worker in Felinia can produce either 5 blankets or 1 meal per day. Each nation has 10 workers. For many years, the two countries traded, each completely specializing according to their respective comparative advantages. Now war has broken out between them and all trade has stopped. Without trade, Caninia produces and consumes 10 blankets and 40 meals per day and Felinia produces and consumes 25 blankets and 5 meals per day. The war has caused the combined daily output of the two countries to decline by

Accepted Answer

A)   15 blankets and 35 meals.
B)   25 blankets and 40 meals.
C)   35 blankets and 45 meals.
D)   50 blankets and 80 meals.E) A) and D)
F) C) and D)

Question 13

Figure 3-3
   
-Refer to Figure 3-3. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of tacos and burritos could Arturo and Dina together not produce in a given day?

Accepted Answer

A)   200 tacos and 400 burritos
B)   300 tacos and 350 burritos
C)   400 tacos and 300 burritos
D)   600 tacos and 250 burritosE) None of the above
F) B) and C)

Exam 3: Interdependence and the Gains From Trade

Figure 3-3 -Refer to Figure 3-3. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of tacos and burritos could Arturo and Dina together not produce in a given day?

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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Table 3-12 -Refer to Table 3-1. For the farmer, the opportunity cost of 1 pound of potatoes is

Correct Answer
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Correct Answer
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Alpha's Production Possibilities Frontie...
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Figure 3-4 -Refer to Figure 3-4. The opportunity cost of 1 poem for Perry is

Correct Answer
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Table 3-9 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 3-9. Jim has an absolute advantage in

Correct Answer
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What must be given up to obtain an item is called

Correct Answer
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Figure 3-4 -Refer to Figure 3-4. The opportunity cost of 1 novel for Jordan is

Correct Answer
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Figure 3-7 -Refer to Figure 3-7. If Bintu and Juba each divides her time equally between making bowls and making cups, then total production is

Correct Answer
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Figure 3-8 -Refer to Figure 3-8. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of pounds of coffee and pounds of soybeans could Chile and Colombia together not make in a given day?

Correct Answer
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Figure 3-5 -Refer to Figure 3-5. At which of the following prices would both Hosne and Merve gain from trade with each other?

Correct Answer
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Table 3-9 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 3-9. Barb's opportunity cost of testing one computer is setting up

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

Figure 3-3 -Refer to Figure 3-3. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of tacos and burritos could Arturo and Dina together not produce in a given day?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 3-12 -Refer to Table 3-1. For the farmer, the opportunity cost of 1 pound of potatoes is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAlpha's Production Possibilities Frontie...View AnswerShow Answer

Figure 3-4 -Refer to Figure 3-4. The opportunity cost of 1 poem for Perry is

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Table 3-9 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 3-9. Jim has an absolute advantage in

Correct AnswerverifiedShow Answer

What must be given up to obtain an item is called

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Figure 3-4 -Refer to Figure 3-4. The opportunity cost of 1 novel for Jordan is

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Correct AnswerverifiedShow Answer

Figure 3-7 -Refer to Figure 3-7. If Bintu and Juba each divides her time equally between making bowls and making cups, then total production is

Correct AnswerverifiedShow Answer

Figure 3-8 -Refer to Figure 3-8. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of pounds of coffee and pounds of soybeans could Chile and Colombia together not make in a given day?

Correct AnswerverifiedShow Answer

Figure 3-5 -Refer to Figure 3-5. At which of the following prices would both Hosne and Merve gain from trade with each other?

Correct AnswerverifiedShow Answer

Table 3-9 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 3-9. Barb's opportunity cost of testing one computer is setting up

Correct AnswerverifiedShow Answer

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Alpha's Production Possibilities Frontie...
View Answer

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