Question 1

It takes Anne 3 hours to make a pie and 4 hours to make a shirt. It takes Mary 2 hours to make a pie and 5 hours to make a shirt. Anne should specialize in making shirts and Mary should specialize in making pies, and they should trade.

Accepted Answer

A) True 
 B)False

Question 2

Scenario 3-2
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 3-2. Which country, if either, has an absolute advantage producing rice? Defend your answer.

Accepted Answer

Country A has an absolute adva...

Question 3

Table 3-11
Assume that Max and Min can switch between producing mittens and producing hats at a constant rate.
​ 
-Refer to Table 3-11. Which of the following points would not be on Max's production possibilities frontier, based on a 36-hour production period?

Accepted Answer

A)  (18 mittens, 0 hats) 
B)  (12 mittens, 2 hats) 
C)  (6 mittens, 4 hats) 
D)  (2 mittens, 6 hats) E) B) and C)
F) A) and D)

Question 4

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 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. Which of the following statements is true?

Accepted Answer

A)  Both countries could gain from trade with each other.
B)  Neither country could gain from trade with each other because Cornland has an absolute advantage in both goods.
C)  Neither country could gain from trade with each other because neither one has a comparative advantage.
D)  Oatland could gain from trade between the two countries, but Cornland definitively would lose.E) A) and D)
F) None of the above

Question 5

Figure 3-9
Uzbekistan's Production Possibilities Frontier
Azerbaijan's Production Possibilities Frontier  
-Refer to Figure 3-9. If the production possibilities frontiers shown are each for two days of production, then which of the following combinations of bolts and nails could Uzbekistan and Azerbaijan together not make in a given 2-day production period?

Accepted Answer

A)  9 bolts and 122 nails
B)  21 bolts and 98 nails
C)  36 bolts and 56 nails
D)  47 bolts and 18 nailsE) B) and C)
F) A) and D)

Question 6

Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier  
-Refer to Figure 3-15. Jordan should specialize in the production of

Accepted Answer

A)  novels.
B)  poems.
C)  both goods.
D)  neither good.E) A) and C)
F) All of the above

Question 7

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. At which of the following prices would both England and Spain gain from trade with each other?

Accepted Answer

A)  16 units of bread for 16 units of cheese
B)  16 units of bread for 24 units of cheese
C)  16 units of bread for 48 units of cheese
D)  England and Spain could not both gain from trade with each other at any price.E) None of the above
F) A) and D)

Exam 3: Interdependence and the Gains From Trade

Correct Answer
verified

It takes Anne 3 hours to make a pie and 4 hours to make a shirt. It takes Mary 2 hours to make a pie and 5 hours to make a shirt. Anne should specialize in making shirts and Mary should specialize in making pies, and they should trade.

Correct Answer
verified

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. At which of the following prices would both England and Spain gain from trade with each other?

Correct Answer
verified

Correct Answer
verified
Country A has an absolute adva...
View Answer

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 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. Which of the following statements is true?

Correct Answer
verified

Figure 3-15 Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier -Refer to Figure 3-15. Jordan should specialize in the production of

Correct Answer
verified

Table 3-11 Assume that Max and Min can switch between producing mittens and producing hats at a constant rate. -Refer to Table 3-11. Which of the following points would not be on Max's production possibilities frontier, based on a 36-hour production period?

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

Correct AnswerverifiedShow Answer

It takes Anne 3 hours to make a pie and 4 hours to make a shirt. It takes Mary 2 hours to make a pie and 5 hours to make a shirt. Anne should specialize in making shirts and Mary should specialize in making pies, and they should trade.

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. At which of the following prices would both England and Spain gain from trade with each other?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedCountry A has an absolute adva...View AnswerShow Answer

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 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. Which of the following statements is true?

Correct AnswerverifiedShow Answer

Figure 3-15 Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier -Refer to Figure 3-15. Jordan should specialize in the production of

Correct AnswerverifiedShow Answer

Table 3-11 Assume that Max and Min can switch between producing mittens and producing hats at a constant rate. ​ -Refer to Table 3-11. Which of the following points would not be on Max's production possibilities frontier, based on a 36-hour production period?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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. At which of the following prices would both England and Spain gain from trade with each other?

Correct Answer
verified

Correct Answer
verified
Country A has an absolute adva...
View Answer

Correct Answer
verified

Correct Answer
verified

Table 3-11 Assume that Max and Min can switch between producing mittens and producing hats at a constant rate. -Refer to Table 3-11. Which of the following points would not be on Max's production possibilities frontier, based on a 36-hour production period?

Correct Answer
verified