(3-1) Interdependence and the Gains from Trade
Q: 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?
A: 4 hours. 5
Q: Refer to the Table. Which of the following combinations of cheese and wine could France not produce in 40 hours?
A: 4 units of cheese and 6 units of wine. 8
Q: Refer to the Figure. If Luigi and Maria each divide their time equally between producing meatballs and pizza, then total production is
A: 350 meatballs, 300 pizzas. 6
Q: 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
A: 10 units of cheese and 4 units of wine. 12
Q: Refer to the Table. Which of the following combinations of cheese and wine could England not produce in 40 hours?
A: 15 units of cheese and 6 units of wine. 20
Q: 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?
A: 2 avocados, 160 beans. 14
Q: Refer to the Table. Which of the following combinations of cheese and wine could France produce in 40 hours?
A: 2 units of cheese and 12 units of wine. 25
Q: 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
A: 22.5 units of cheese and 14 units of wine. 1
Q: 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?
A: 3 avocados, 140 beans. 19
Q: 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
A: 40 units of cheese and 20 units of wine. 11
Q: 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
A: 400 tacos and 400 burritos. 26
Q: Refer to the Figure. If Adam and Deirdre each divide their time equally between the production of tacos and burritos, then total production is
A: 400 tacos, 250 burritos. 2
Q: Refer to the Table. Which of the following combinations of cheese and wine could England produce in 40 hours?
A: 5 units of cheese and 7 units of wine. 7
Q: 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 Luigi and Maria together produce in a given day?
A: 500 meatballs, 200 pizzas. 16
Q: 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?
A: 500 tacos, 300 burritos. 10
Q: 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 Luigi and Maria together not produce in a given day?
A: 550 meatballs, 250 pizzas. 17
Q: 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
A: 7.5 units of cheese and 2 units of wine. 3
Q: 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 not produce in a given day?
A: 700 meatballs and 0 pizzas. 13
Q: 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?
A: 700 tacos, 150 burritos. 23
Q: Refer to the Figure. If Adam and Deirdre both spend all of their time producing tacos, then total production is
A: 800 tacos and 0 burritos. 9
Q: 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?
A: Anne produces more lemonade and Brianna produces more pizzas. 22
Q: The production possibilities frontier illustrates the combinations of output that an economy should produce.
A: False. 18
Refer to the Figure. Point A represents Anne's current production and point B represents Bridget's current production. True or False: In order to benefit from specialization and trade, Anne should produce more pizza and Bridget should produce more lemonade.
A: False. 27
Q: When the economy is self-sufficient, an economy's production possibilities frontier is also its consumption possibilities frontier.
A: True. 24
Q: 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
A: identical with both gaining 0 tacos and 75 burritos. 4
Q: 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
A: the slope of England's production possibilities frontier would be -0.2 and the slope of France's production possibilities frontier would be -4. 15
Q: 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
A: the slope of England's production possibilities frontier would be -5 and the slope of France's production possibilities frontier would be -0.25. 21