Econ 3

Refer to the Table. Which of the following combinations of cheese and wine could France not produce in 40 hours?

4 units of cheese and 6 units of wine

Refer to the Figure . Alan should specialize in the production of

muffins and Diana should specialize in the production of scones.

Refer to the Table. Brian should specialize in the production of

pork and Tabitha should specialize in the production of apples.

Refer to the Table. Mexico should export

tablets and import freezers.

Absolute advantage is

the ability to produce a good using fewer inputs than another producer.

Refer to the Table. Italy should export

wine and import cheese.

Refer to the Figure . Germany's opportunity cost of one unit of Good X is

2 units of Good Y and Spain's opportunity cost of one unit of Good X is 1/2 unit of Good Y.

Refer to the Table. Which of the following combinations of cheese and wine could France produce in 40 hours?

2 units of cheese and 12 units of wine

Refer to the Table. Assume that Brian and Tabitha each has 120 minutes available. If each person spends all his or her time producing the good in which he or she has a comparative advantage, then total production is

20 bushels of apples and 10 pounds of pork.

Michael is a financial adviser. He bills his clients $100 an hour for his services. He can also mow his lawn in 45 minutes. He can hire someone to mow his lawn who takes 90 minutes. Of the following prices, which is the highest Michael would pay someone to mow his lawn?

$74

Suppose that a worker in Shipville can produce either 5 units of oats or 20 pounds of tuna per year, and a worker in Grainland can produce either 20 units of oats or 5 pounds of tuna per year. There are 20 workers in each country. No trade occurs between the two countries. Shipville produces and consumes 50 units of oats and 200 pounds of tuna per year while Grainland produces and consumes 200 units of oats and 50 pound of tuna per year. If trade were to occur, Shipville would trade 60 pounds of tuna for 60 units of oats. If Shipville now completely specializes in tuna production, how many pounds of tuna could it now consume along with the 60 units of imported oats?

.340 pounds

Refer to the figure. Before specialization, Alan and Diana were dividing their time equally between the production of muffins and scones. If both decide to specialize in the good in which they have the comparative advantage, total production will increase by

0 scones and 50 muffins.

Refer to the table. Assume that England and France each has 40 labor hours available. Before specialization and trade each country divides its time equally between the production of cheese and wine. Then, both countries decide they could be better off if they specialized in the production of one good and traded with each other. If England specializes in cheese and France specializes in wine and the countries trade 10 units of cheese for 8 units of wine, England's gains from trade will be

10 units of cheese and 4 units of wine.

Refer to the Figure . At which of the following prices would both Alan and Diana gain from trade with each other?

12 muffins for 21 scones

Refer to the Figure . Germany would incur an opportunity cost of 6 units of Good X if it increase its production of Good Y by

12 units

Refer to the Table. Which of the following combinations of cheese and wine could England not produce in 40 hours?

15 units of cheese and 6 units of wine

Suppose that a worker in Tabletland can produce either 4 tablets or 1 television per year, and a worker in Ledville can produce either 2 tablets or 4 televisions per year. Each nation has 50 workers. Also suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Tabletland trades 50 tablets to Ledville in exchange for 50 televisions each year, then each country's maximum consumption of new tablets and televisions per year will be

150 tablets, 50 televisions in Tabletland and 50 tablets, 150 televisions in Ledville.

Refer to the Figure. If the production possibilities frontier shown is for two months of production, then which of the following combinations of beans and avocados could Mexico produce in two months?

2 avocados, 160 beans

Refer to the Table. Assume that England and France each has 40 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is

22.5 units of cheese and 14 units of wine

Refer to the Figure. If the production possibilities frontier shown is for two months of production, then which of the following combinations of beans and avocados could Mexico not produce in two months?

3 avocados, 140 beans

Refer to the Table. What is Tabitha's opportunity cost of producing one bushel of apples?

3/5 pound of pork

Refer to the Figure. If Katarina and Chris both divide their time equally between the production of meatballs and pizzas, then total production is

350 meatballs, 300 pizzas

Refer to the Figure. If the production possibilities frontier shown is for 24 hours of production, then how long does it take Mexico to produce one avocado?

4 hours

Refer to the Figure . Alan's opportunity cost of one muffin is ______ and Diana's opportunity cost of one muffin is ______.

4/3 scones; 2 scones

Refer to the table. Assume that England and France each has 40 labor hours available. Both countries decide they could be better off if they specialized in the production of one good and traded with each other. If England specializes in cheese and France specializes in wine, then the total production is

40 units of cheese and 20 units of wine.

Refer to the figure. Adam and Deirdre decide they could both be better off if they specialized in the production of one good and traded with each other. If Adam specializes in burritos and Deirdre specializes in tacos, then the total production is

400 tacos and 400 burritos.

Refer to the Figure. If Adam and Deirdre each divide their time equally between the production of tacos and burritos, then total production is

400 tacos, 250 burritos

Refer to the Table. Which of the following combinations of cheese and wine could England produce in 40 hours?

5 units of cheese and 7 units of wine

Refer to the Figure. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of meatballs and pizzas could Chris and Katarina together produce in a given day?

500 meatballs, 200 pizzas

Refer to the Figure. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of tacos and burritos could Adam and Deirdre together produce in a given day?

500 tacos, 300 burritos

Refer to the Figure. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of meatballs and pizzas could Chris and Katarina together not produce in a given day?

550 meatballs, 250 pizzas

Refer to the Table. At which of the following prices would both Brian and Tabitha gain from trade with each other?

6 bushels of apples for 4 pounds of pork

Refer to the figure. Before specialization, Germany and Spain were dividing their time equally between the production of Good X and Good Y. If both countries decide to specialize in the good in which they have the comparative advantage, total production will increase by

6 units of Good X and 3 units of Good Y.

Refer to the Figure . At which of the following prices would both Germany and Spain gain from trade with each other?

6 units of Good Y for 4 units of Good X

Refer to the Table. What is Brian's opportunity cost of producing one pound of pork?

6/5 bushels of apples

Refer to the table. Assume that England and France each has 40 labor hours available. Before specialization and trade each country divides its time equally between the production of cheese and wine. Then, both countries decide they could be better off if they specialized in the production of one good and traded with each other. If England specializes in cheese and France specializes in wine and the countries trade 10 units of cheese for 8 units of wine, France's gains from trade will be

7.5 units of cheese and 2 units of wine

Refer to the Figure. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of meatballs and pizzas could Chris and Katarina together not produce in a given day?

700 meatballs and 600 pizzas

Refer to the Figure. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of tacos and burritos are Adam and Deirdre together unable to produce in a given day?

700 tacos, 150 burritos

Refer to the Figure. If Adam and Deirdre both spend all of their time producing tacos, then total production is

800 tacos and 0 burritos

Which of the following statements about comparative advantage is not true?

A country cannot have a comparative advantage in producing a good unless it has an absolute advantage in producing that good.

Refer to the Figure . Which of the following is not correct?

Alan and Diana could each consume 150 muffins and 150 scones with trade.

Refer to the Figure. If point A represents Anne's current production and point B represents Brianna's current production, under what circumstances can both Anne and Brianna benefit from specialization and trade?

Anne produces more lemonade and Brianna produces more pizzas.

Luke and Carol are two toymakers who both produce trains and cars. In one month, Luke can produce 5 trains or 20 cars, whereas Carol can produce 8 trains or 24 cars. Given this, we know that

Carol has an absolute advantage in cars.

China has a comparative advantage in the production of silk, but Japan has an absolute advantage in the production of silk. If these two countries decide to trade,

China should export silk to Japan.

The production possibilities frontier illustrates the combinations of output that an economy should produce.

False

Tom Cruise should pay someone else to mow his lawn instead of mowing it himself, unless

Cruise has a comparative advantage over everyone else in mowing his lawn

Both Denis and Carol produce cupcakes and cookies. If Denis's opportunity cost of 1 cupcake is 3 cookies and Carol's opportunity cost of 1 cupcake is 4 cookies, then

Denis has a comparative advantage in the production of cupcakes.

Economists use the term absolute advantage when describing the opportunity cost of two producers.

False

Refer to the Figure. Point A represents Anne's current production and point B represents Brianna's current production.True or False: In order to benefit from specialization and trade, Anne should produce more pizza and Brianna should produce more lemonade.

False

Refer to the Figure . Germany has a comparative advantage in the production of

Good Y and Spain has a comparative advantage in the production of Good X.

Refer to the Figure . Germany has an absolute advantage in the production of

Good Y and Spain has an absolute advantage in the production of Good X.

The principle of comparative advantage does not provide answers to certain questions. One of those questions is

What determines the price at which trade takes place?

Suppose Jake and Tim can both produce two goods: football helmets and baseball bats. Which of the following is not possible?

Jake has a comparative advantage in the production of football helmets and in the production of baseball hats.

If Jeff can produce more cookies in one day than Josie can produce in one day, then

Jeff has an absolute advantage in the production of cookies.

Suppose that a worker in Wheatville can grow either 50 bushels of wheat or 10 bushels of oats per year, and a worker in Oatland can grow either 25 bushels of wheat or 5 bushels of oats per year. There are 15 workers in Wheatville and 15 workers in Oatland. Which of the following statements is true?

Neither country could gain from trade with each other because neither one has a comparative advantage.

Suppose Maria and Nikki can produce ballet shoes. If Maria's opportunity cost of producing ballet shoes is higher than Nikki's opportunity cost of producing ballet shoes, then

Nikki has a comparative advantage in the production of ballet shoes.

Suppose Jessica can wash six windows per hour or she can iron twelve shirts per hour. Peter can wash four windows per hour or he can iron ten shirts per hour. Which of the following is not true?

Peter has an absolute advantage over Jessica in ironing shirts.

Assume that Sweden has a comparative advantage in chocolate and Italy has a comparative advantage in wine. Also assume that Sweden has an absolute advantage in both chocolate and wine. If these two countries specialize and trade so as to maximize the benefits of specialization and trade, then

Sweden will produce more chocolate than it would produce in the absence of trade.

Which of the following would not result from all countries specializing according to the principle of comparative advantage?

The production possibilities frontier for each country would shift inward.

Which of the following statements is not correct?

Trade does not allow for specialization.

Trevor can shovel a driveway in two hours or he can plow a parking lot in 30 minutes. Paul can shovel a driveway in one hour or he can plow a parking lot in one hour. Given this we know that

Trevor has an absolute advantage in plowing a parking lot.

For two individuals who engage in the same two productive activities, it is impossible for one of the two individuals to have a comparative advantage in both activities.

True

When the economy is self-sufficient, an economy's production possibilities frontier is also its consumption possibilities frontier.

True

Imports are goods produced _____ and sold ________.

abroad; domestically

Refer to the Table. France should export

cheese and import wine.

Refer to the Figure. Argentina should specialize in the production of

coffee and import soybeans.

Exports are goods produced _____ and sold ________.

domestically; abroad

Suppose Canada and China can both produce cars and airplanes, and Canada has the comparative advantage in the production of airplanes while China has the comparative advantage in the production of cars. Also, suppose China has an absolute advantage in the production of both cars and airplanes. China should

export cars to Canada and import airplanes from Canada.

Refer to the figure. Before specialization and trade, Adam and Deirdre each divide his and her time equally between the production of tacos and burritos. Then, both decide they could be better off if they specialized in the production of one good and traded with each other. If Adam specializes in burritos and Deirdre specializes in tacos and they trade 200 tacos for 125 burritos, Adam and Deirdre's gains from trade will be

identical with both gaining 0 tacos and 75 burritos.

China and Japan both produce clothing and computers. China is said to have the comparative advantage in producing clothing if

the opportunity cost of producing clothing is lower for China than it is for Japan

Refer to the Table. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for France. If we were to do this, measuring cheese along the horizontal axis, then

the slope of England's production possibilities frontier would be -0.2 and the slope of France's production possibilities frontier would be -4.

Refer to the Table. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for France. If we were to do this, measuring wine along the horizontal axis, then

the slope of England's production possibilities frontier would be -5 and the slope of France's production possibilities frontier would be -0.25.