Ch 3 Macro

Refer to table 3-37: Sarah and charles are both potters and each can switch between the production of vases and mugs at a constant rate. The table shows the total number of vases or decorative mugs that each person can produce in a 6 hour session of producing pottery

Sarah has an absolute advantage in the production of mugs and charles ha an absolute advantage in the production of vases

Which of the following is not a reason people choose to depend on others for goods and services

To allow people to produce outside their production possibilities frontiers

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

When an economist points out that you and millions of other people are interdependent, he or she is referring to the fact that we all

rely upon one another for the goods and services we consume

A production possibilities frontier is a straight line when

the rate of tradeoff between the two goods being produced is constant

The opportunity cost of an item is

what you give up to get that item

Refer to figure 3-15: Jordan should specialize in the production of

Novels

Refer to table 3-21: Jamaica's opportunity cost of one cooler is

0.5 radios, and Norway's opportunity cost of one cooler is 0.125 radios

Refer to figure 3-13: Suppose peru decides to increase its production of rubies by 30. What is the opportunity cost of this decision

1 emerald

Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 chair is

1/6 table for Ken and 1/3 table for Traci

35. Refer to figure 3-3: If dina must work 0.25 hour to produce each taco, then her production possibilities frontier is based on how many hours of work

100 hours

Refer to figure 3-12: If argentina and peru each divides its time equally between producing corn and fish then total production is

12 tons of corn and 11 tons of fish

Refer to Table 3-21: Assume that Jamaica and Norway each has 4 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of coolers increased by

24

Refer to figure 3-7: If bintu and juba each divides her time equally between making bowls and making cups, then total production is

3 bowls and 7 cups

Refer to figure 3-4: If Lisa and Bryce each divides his or her time equally between producing jackets and producing sweaters, then total production is

3 sweaters and 13 jackets

Refer to Table 3-37: Sarah and Charles are both partners and each can switch between the production of vases and mugs at a constant rate. The table shows the total number of vases or decorative mugs that each person can produce in a 6 hour session of producing pottery. Sarah's opportunity cost to produce 1 vase is

4 mugs and charles opportunity cost of producing one vase is 2.5 mugs

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 soybean could chile and colombia together not make in a given day

4 pounds of coffee and 17 pounds of soybeans

Refer to figure 3-3: If arturo and dina each divides his/her time equally between the production of tacos and burritos, then the total production is

400 tacos and 250 burritos

Refer to figure 3-5: If Hosne must work 0.5 hours to make each purse, then her production possibilities frontier is based on how many hours of work

5 hours

Refer to figure 3-16: Hosne's opportunity cost of one wallet is

5/4 purses and Merve's opportunity cost of one wallet is 2/3 purse

Refer to figure 3-14: If Arturo and Dina switch from each person dividing their time equally between the production of tacos and burritos to each person spending all of their time producing the good in which they have a comparative advantage, then total production of burritos will increase by

50

Which of the following statements about comparative advantage is not true

Comparative advantage is determined by which person or group of persons can produce a given quantity of a good using the fewest resources

Refer to figure 3-24: Bob has

A comparative but not an absolute advantage producing good x

Refer to figure 3-22: Which of the following statements is correct regarding comparative advantage

Alice has a comparative advantage in the production of lemonade while Betty has a comparative advantage in the production of pizzas

Refer to figure 3-15: Perry has an absolute advantage in the production of

Neither good and Jordan has an absolute advantage in the production of novels

When a country has a comparative advantage in producing a certain good

None of the above is correct

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

Each country's production possibilities frontier would shift inward

Refer to figure 3-20: Canada has a comparative advantage in the production of

Good Y and Mexico has a comparative advantage in the production of good x

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

Iowa has a comparative advantage in the production of corn

The most obvious benefit of specialization and trade is that they would allow us to

consume more goods than we otherwise would be able to consume

32. Refer to figure 3-18: Bintu has a comparative advantage in the production of

cups and juba has a comparative advantage in the production of bowls

17. Refer to figure 3-18: Bintu has an absolute advantage in the production of

cups and juba has an absolute advantage in the production of bowls

The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good

has an absolute advantage in the production of that good

If he devotes all of his available resources to cantaloupe production, a farmer can produce 120 cantaloupes. If he sacrifices 1.5 watermelons for each cantaloupe that he produces, it follows that

his opportunity cost of one watermelon is 2/3 of a cantaloupe

A country that currently does not trade with other countries could benefit by

not restricting trade