Question 1

Figure 3-7
 
-Refer to Figure 3-7.If Bintu must work 2 hours to make each cup,then her production possibilities frontier is based on how many hours of work?

Accepted Answer

A)   2 hours
B)   4 hours
C)   8 hours
D)   16 hoursE) B) and C)
F) A) and B)

Question 2

Figure 3-4
 
-Refer to Figure 3-4.If Jordan must work 3 months to write each novel,then her production possibilities frontier is based on how many months of work?

Accepted Answer

A)   1 month
B)   3 months
C)   4 months
D)   12 monthsE) A) and D)
F) A) and C)

Question 3

Trade allows a country to consume outside its production possibilities frontier.

Accepted Answer

A) True 
 B)False

Question 4

A certain cowboy spends 10 hours per day mending fences and herding cattle.For the cowboy,a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day) is called his

Accepted Answer

A)   line of tastes.
B)   trade-off curve.
C)   production possibilities frontier.
D)   consumption possibilities frontier.E) C) and D)
F) None of the above

Question 5

Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
 
-Refer to Table 3-6.Maya has an absolute advantage in the production of

Accepted Answer

A)   both goods and a comparative advantage in the production of mixers.
B)   both goods and a comparative advantage in the production of toasters.
C)   neither good and a comparative advantage in the production of mixers.
D)   neither good and a comparative advantage in the production of toasters.E) All of the above
F) B) and D)

Question 6

Figure 3-9
 
-Refer to Figure 3-9.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)

Question 7

Figure 3-8
 
-Refer to Figure 3-8.At which of the following prices would both Chile and Colombia gain from trade with each other?

Accepted Answer

A)   6 pounds of soybeans for 9 pounds of coffee
B)   8 pounds of soybeans for 20 pounds of coffee
C)   11 pounds of soybeans for 33 pounds of coffee
D)   Chile and Colombia could not both gain from trade with each other at any price.E) C) and D)
F) A) and B)

Question 8

Suppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in auto parts.If the US exports semiconductors to Mexico and imports auto parts from Mexico,

Accepted Answer

A)   both countries, as a whole, will be better off.
B)   all individuals in both countries will be better off.
C)   both countries, as a whole, will be worse off.
D)   all individuals in both countries will be worse off.E) A) and B)
F) All of the above

Question 9

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

Accepted Answer

A)   1/2 novel.
B)   1/3 novel.
C)   3 novels.
D)   4 novels.E) C) and D)
F) B) and D)

Question 10

Figure 3-10
Alice and Betty's Production Possibilities in one 8-hour day.
 
-Refer to Figure 3-10.What are Alice and Betty's opportunity costs of 1 pizza?

Accepted Answer

A)   Alice's opportunity cost of 1 pizza is 1/2 of a pitcher of lemonade and Betty's opportunity cost of 1 pizza is 2/3 of a pitcher of lemonade.
B)   Alice's opportunity cost of 1 pizza is 1 pitcher of lemonade and Betty's opportunity cost of 1 pizza is 3 pitchers of lemonade.
C)   Alice's opportunity cost of 1 pizza is 2 pitchers of lemonade and Betty's opportunity cost of 1 pizza is 1.5 pitchers of lemonade.
D)   Alice's opportunity cost of 1 pizza is 400 pitchers of lemonade and Betty's opportunity cost of 1 pizza is 450 pitchers of lemonade.E) B) and D)
F) None of the above

Question 11

Table 3-1
Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.
 
-Refer to Table 3-1.Which of the following combinations of wheat and beef could Zardia not produce in one 10-hour day?

Accepted Answer

A)   10 bushels of wheat and 45 pounds of beef
B)   20 bushels of wheat and 30 pounds of beef
C)   25 bushels of wheat and 25 pounds of beef
D)   30 bushels of wheat and 15 pounds of beefE) A) and B)
F) None of the above

Question 12

If Wrex can produce more math problems per hour and more book reports per hour than Maxine can,then Wrex cannot gain from trading math problems and book reports with Maxine.

Accepted Answer

A) True 
 B)False

Question 13

Tom Brady should probably not mow his own lawn because

Accepted Answer

A)   his opportunity cost of mowing his lawn is higher than the cost of paying someone to mow it for him.
B)   he has a comparative advantage in mowing his lawn relative to a landscaping service.
C)   he has an absolute advantage in mowing his lawn relative to a landscaping service.
D)   he might sprain his ankle.E) None of the above
F) B) and C)

Question 14

Figure 3-10
Alice and Betty's Production Possibilities in one 8-hour day.
 
-Refer to Figure 3-10.Which of the following statements is correct regarding comparative advantage?

Accepted Answer

A)   Alice has a comparative advantage in the production of both lemonade and pizzas.
B)   Betty has a comparative advantage in the production of both lemonade and pizzas.
C)   Alice has a comparative advantage in the production of pizzas while Betty has a comparative advantage in the production of lemonade.
D)   Alice has a comparative advantage in the production of lemonade while Betty has a comparative advantage in the production of pizzas.E) A) and B)
F) All of the above

Question 15

Figure 3-11
The graph below represents the various combinations of ham and cheese (in pounds)  that the nation of Bonovia could produce in a given month.
 
-Refer to Figure 3-11.If the production possibilities frontier shown is for 240 hours of production,then which of the following combinations of ham and cheese could Bonovia not produce in 240 hours?

Accepted Answer

A)   250 pounds of ham and 120 pounds of cheese
B)   200 pounds of ham and 160 pounds of cheese
C)   160 pounds of ham and 200 pounds of cheese
D)   100 pounds of ham and 240 pounds of cheeseE) None of the above
F) A) and D)

Question 16

Table 3-12
 
-Refer to Table 3-12.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) A) and C)
F) A) and D)

Question 17

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) None of the above

Question 18

Figure 3-9

-Refer to Figure 3-9.If Uzbekistan and Azerbaijan each divides its time equally between making bolts and making nails,then total production is

Accepted Answer

A)   15 bolts and 40 nails.
B)   25 bolts and 70 nails.
C)   30 bolts and 80 nails.
D)   50 bolts and 140 nails.E) B) and C)
F) A) and C)

Question 19

If a person chooses self-sufficiency,then she can only consume what she produces.

Accepted Answer

A) True 
 B)False

Question 20

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.
 
-Refer to Table 3-4.The farmer has an absolute advantage in the production of

Accepted Answer

A)   meat.
B)   potatoes.
C)   both goods.
D)   neither good.E) None of the above
F) B) and D)

Exam 3: Interdependence and the Gains from Trade.

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

Correct Answer
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If a person chooses self-sufficiency,then she can only consume what she produces.

Correct Answer
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Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10.Which of the following statements is correct regarding comparative advantage?

Correct Answer
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Trade allows a country to consume outside its production possibilities frontier.

Correct Answer
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Figure 3-9 -Refer to Figure 3-9.If Uzbekistan and Azerbaijan each divides its time equally between making bolts and making nails,then total production is

Correct Answer
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Table 3-1 Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-1.Which of the following combinations of wheat and beef could Zardia not produce in one 10-hour day?

Correct Answer
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Figure 3-4 -Refer to Figure 3-4.If Jordan must work 3 months to write each novel,then her production possibilities frontier is based on how many months of work?

Correct Answer
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Figure 3-8 -Refer to Figure 3-8.At which of the following prices would both Chile and Colombia gain from trade with each other?

Correct Answer
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Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10.What are Alice and Betty's opportunity costs of 1 pizza?

Correct Answer
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Table 3-12 -Refer to Table 3-12.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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If Wrex can produce more math problems per hour and more book reports per hour than Maxine can,then Wrex cannot gain from trading math problems and book reports with Maxine.

Correct Answer
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Tom Brady should probably not mow his own lawn because

Correct Answer
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A certain cowboy spends 10 hours per day mending fences and herding cattle.For the cowboy,a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day) is called his

Correct Answer
verified

Table 3-6 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-6.Maya has an absolute advantage in the production of

Correct Answer
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Table 3-4 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. -Refer to Table 3-4.The farmer has an absolute advantage in the production of

Correct Answer
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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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Suppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in auto parts.If the US exports semiconductors to Mexico and imports auto parts from Mexico,

Correct Answer
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Figure 3-9 -Refer to Figure 3-9.Azerbaijan has an absolute advantage in the production of

Correct Answer
verified

Figure 3-7 -Refer to Figure 3-7.If Bintu must work 2 hours to make each cup,then her production possibilities frontier is based on how many hours of work?

Correct Answer
verified

Exam 3: Interdependence and the Gains from Trade.

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

Correct AnswerverifiedShow Answer

If a person chooses self-sufficiency,then she can only consume what she produces.

Correct AnswerverifiedShow Answer

Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10.Which of the following statements is correct regarding comparative advantage?

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Trade allows a country to consume outside its production possibilities frontier.

Correct AnswerverifiedShow Answer

Figure 3-9 -Refer to Figure 3-9.If Uzbekistan and Azerbaijan each divides its time equally between making bolts and making nails,then total production is

Correct AnswerverifiedShow Answer

Table 3-1 Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate. -Refer to Table 3-1.Which of the following combinations of wheat and beef could Zardia not produce in one 10-hour day?

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Figure 3-4 -Refer to Figure 3-4.If Jordan must work 3 months to write each novel,then her production possibilities frontier is based on how many months of work?

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Correct AnswerverifiedShow Answer

Figure 3-8 -Refer to Figure 3-8.At which of the following prices would both Chile and Colombia gain from trade with each other?

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Figure 3-10 Alice and Betty's Production Possibilities in one 8-hour day. -Refer to Figure 3-10.What are Alice and Betty's opportunity costs of 1 pizza?

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Table 3-12 -Refer to Table 3-12.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

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If Wrex can produce more math problems per hour and more book reports per hour than Maxine can,then Wrex cannot gain from trading math problems and book reports with Maxine.

Correct AnswerverifiedShow Answer

Tom Brady should probably not mow his own lawn because

Correct AnswerverifiedShow Answer

A certain cowboy spends 10 hours per day mending fences and herding cattle.For the cowboy,a graph that shows his various possible mixes of output (fences mended per day and cattle herded per day) is called his

Correct AnswerverifiedShow Answer

Table 3-6 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. -Refer to Table 3-6.Maya has an absolute advantage in the production of

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Table 3-4 Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. -Refer to Table 3-4.The farmer has an absolute advantage in the production of

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

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Suppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in auto parts.If the US exports semiconductors to Mexico and imports auto parts from Mexico,

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Figure 3-9 -Refer to Figure 3-9.Azerbaijan has an absolute advantage in the production of

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Figure 3-7 -Refer to Figure 3-7.If Bintu must work 2 hours to make each cup,then her production possibilities frontier is based on how many hours of work?

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