Question 1

Gary and Diane must prepare a presentation for their marketing class.As part of their presentation,they must do a series of calculations and prepare 50 PowerPoint slides.It would take Gary 10 hours to do the required calculation and 10 hours to prepare the slides.It would take Diane 12 hours to do the calculations and 20 hours to prepare the slides.
a.How much time would it take the two to complete the project if they divide the calculations equally and the slides equally?
b.How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides?
c.If Diane and Gary have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?

Accepted Answer

a. If both tasks are divided equally,it ...

Question 2

Use the accompanying table to answer the following questions:
Table 3-6
 
-Refer to Table 3-6.If England and Spain specialize and trade according to their respective comparative advantages,

Accepted Answer

A)  all individuals in both countries will benefit.
B)  Spain will specialize in and export bread.
C)  Spain will produce more bread than in the absence of trade.
D)  Spain will produce more cheese than in the absence of trade.E) A) and B)
F) All of the above

Question 3

Use the accompanying table to answer the following questions:
Table 3-6
 
-Refer to Table 3-6.If England and Spain specialize and trade based on the principle of comparative advantage,England will export which product to Spain?

Accepted Answer

A)  cheese
B)  bread
C)  both cheese and bread
D)  England cannot benefit from trade with Spain.E) A) and B)
F) A) and D)

Question 4

Table 3-5
 
-Refer to Table 3-5.The opportunity cost of 1 airplane for Japan is

Accepted Answer

A)  5 cars.
B)  4 cars.
C)  1/4 car.
D)  1/5 car.E) A) and C)
F) All of the above

Question 5

Figure 3-3
 
-Refer to Figure 3-3.The opportunity cost of 1 pair of ballet slippers for Fred is

Accepted Answer

A)  1/3 pair of tap shoes.
B)  1/5 pair of tap shoes.
C)  3/5 pair of tap shoes.
D)  5/3 pairs of tap shoes.E) B) and D)
F) All of the above

Question 6

Use the accompanying table to answer the following questions:
Table 3-6
 
-Refer to Table 3-6.If England and Spain specialize and trade based on the principle of comparative advantage,Spain will export which product to England?

Accepted Answer

A)  bread
B)  cheese
C)  both bread and cheese
D)  Spain cannot benefit from trade with England.E) A) and B)
F) A) and C)

Question 7

Table 3-4
Brenda and Eric run a business that involves setting up and testing computers. The following table applies.
 
-Refer to Table 3-4.Which of the following statements is correct?

Accepted Answer

A)  Brenda has an absolute advantage, and Eric has a comparative advantage, in setting up computers.
B)  Eric has an absolute advantage, and Brenda has a comparative advantage, in setting up computers.
C)  Brenda has an absolute advantage and a comparative advantage in setting up computers.
D)  Eric has an absolute advantage and a comparative advantage in setting up computers.E) B) and C)
F) B) and D)

Question 8

David Ricardo was the author of

Accepted Answer

A)  An Inquiry into the Nature and Causes of the Wealth of Nations.
B)  Principles of Political Economy and Taxation.
C)  The General Theory of Employment, Interest, and Money.
D)  Why Homo Sapiens Dominated Neanderthals.E) A) and B)
F) None of the above

Question 9

Figure 3-2
 
-Refer to Figure 3-2.For Ben,the opportunity cost of 1 pound of ice cream is

Accepted Answer

A)  1/14 pound of cones.
B)  1/2 pound of cones.
C)  2 pounds of cones.
D)  4 pound of cones.E) A) and D)
F) A) and C)

Question 10

Use the accompanying table to answer the following questions:
Table 3-6
 
-Refer to Table 3-6.England and Spain both could benefit,relative to a situation in which neither country is specializing,by England specializing in

Accepted Answer

A)  bread and Spain specializing in cheese.
B)  cheese and Spain specializing in bread.
C)  both goods and Spain specializing in neither good.
D)  neither good and Spain specializing in both goods.E) C) and D)
F) B) and C)

Question 11

Table 3-3
 
-Refer to Table 3-3.Montana has an absolute advantage in

Accepted Answer

A)  birdhouses and Missouri has an absolute advantage in baskets.
B)  baskets and Missouri has an absolute advantage in birdhouses.
C)  neither good and Missouri has an absolute advantage in both goods.
D)  both goods and Missouri has an absolute advantage in neither good.E) None of the above
F) B) and D)

Question 12

The gains from trade are

Accepted Answer

A)  evident in economic models, but seldom observed in the real world.
B)  evident in the real world, but impossible to capture in economic models.
C)  a result of more efficient resource allocation than would be observed in the absence of trade.
D)  based on the principle of absolute advantage.E) A) and C)
F) B) and D)

Question 13

Which economist developed the theory of comparative advantage as we know it today?

Accepted Answer

A)  Plato
B)  Thomas Malthus
C)  Karl Marx
D)  David RicardoE) B) and C)
F) All of the above

Question 14

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 4 tables or 20 chairs,where Sandy can make 6 tables or 18 chairs.Given this,we know that the opportunity cost of 1 chair is

Accepted Answer

A)  1/5 table for Mike and 1/3 table for Sandy.
B)  5 tables for Mike and 3 tables for Sandy.
C)  1/3 table for Mike and 1/5 table for Sandy.
D)  3 tables for Mike and 5 tables for Sandy.E) A) and C)
F) A) and B)

Question 15

Table 3-3
 
-Refer to Table 3-3.The opportunity cost of 1 birdhouse for Missouri is

Accepted Answer

A)  1/2 basket.
B)  1 basket.
C)  1 1/2 baskets.
D)  2 baskets.E) B) and C)
F) B) and D)

Question 16

Consider a shoemaker and a vegetable farmer.Potentially,trade could benefit both individuals if

Accepted Answer

A)  the shoemaker can produce only shoes and the vegetable farmer can produce only vegetables.
B)  the shoemaker is capable of growing vegetables, but he is not very good at it.
C)  the vegetable farmer is better at growing vegetables and better at making shoes than the shoemaker.
D)  All of the above are correct.E) A) and B)
F) B) and D)

Question 17

Figure 3-2
 
-Refer to Figure 3-2.Suppose Ben and Jerry have both decided to produce at point A on their respective production possibilities frontiers.We know that

Accepted Answer

A)  neither Ben's well-being nor Jerry's well-being could be improved as a result of trade between the two.
B)  trade between the two could benefit Ben but not Jerry.
C)  trade between the two could benefit Jerry but not Ben.
D)  Ben and Jerry are both allocating 1/2 of their time to the production of each good.E) B) and D)
F) B) and C)

Question 18

Economists generally support

Accepted Answer

A)  trade restrictions.
B)  government management of trade.
C)  export subsidies.
D)  free international trade.E) A) and C)
F) All of the above

Question 19

For the following question(s) , use the accompanying table.
Table 3-2
 
-Refer to Table 3-2.Helen has a comparative advantage in

Accepted Answer

A)  quilts and Carolyn has an absolute advantage in neither good.
B)  dresses and Carolyn has an absolute advantage in quilts.
C)  quilts and Carolyn has an absolute advantage in dresses.
D)  dresses and Carolyn has an absolute advantage in neither good.E) A) and C)
F) C) and D)

Question 20

Table 3-3
 
-Refer to Table 3-3.The opportunity cost of 1 basket for Montana is

Accepted Answer

A)  1/3 birdhouse.
B)  1 birdhouse.
C)  3 birdhouses.
D)  4 birdhouses.E) A) and C)
F) B) and D)

Exam 3: Interdependence and the Gains From Trade

Which economist developed the theory of comparative advantage as we know it today?

Correct Answer
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Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade according to their respective comparative advantages,

Correct Answer
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Table 3-3 -Refer to Table 3-3.The opportunity cost of 1 basket for Montana is

Correct Answer
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The gains from trade are

Correct Answer
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Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 4 tables or 20 chairs,where Sandy can make 6 tables or 18 chairs.Given this,we know that the opportunity cost of 1 chair is

Correct Answer
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Table 3-3 -Refer to Table 3-3.The opportunity cost of 1 birdhouse for Missouri is

Correct Answer
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Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.England and Spain both could benefit,relative to a situation in which neither country is specializing,by England specializing in

Correct Answer
verified

For the following question(s) , use the accompanying table. Table 3-2 -Refer to Table 3-2.Helen has a comparative advantage in

Correct Answer
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Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade based on the principle of comparative advantage,Spain will export which product to England?

Correct Answer
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Table 3-4 Brenda and Eric run a business that involves setting up and testing computers. The following table applies. -Refer to Table 3-4.Which of the following statements is correct?

Correct Answer
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Correct Answer
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a. If both tasks are divided equally,it ...
View Answer

Figure 3-2 -Refer to Figure 3-2.For Ben,the opportunity cost of 1 pound of ice cream is

Correct Answer
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Figure 3-2 -Refer to Figure 3-2.Suppose Ben and Jerry have both decided to produce at point A on their respective production possibilities frontiers.We know that

Correct Answer
verified

Economists generally support

Correct Answer
verified

Table 3-3 -Refer to Table 3-3.Montana has an absolute advantage in

Correct Answer
verified

Figure 3-3 -Refer to Figure 3-3.The opportunity cost of 1 pair of ballet slippers for Fred is

Correct Answer
verified

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade based on the principle of comparative advantage,England will export which product to Spain?

Correct Answer
verified

Table 3-5 -Refer to Table 3-5.The opportunity cost of 1 airplane for Japan is

Correct Answer
verified

Consider a shoemaker and a vegetable farmer.Potentially,trade could benefit both individuals if

Correct Answer
verified

David Ricardo was the author of

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

Which economist developed the theory of comparative advantage as we know it today?

Correct AnswerverifiedShow Answer

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade according to their respective comparative advantages,

Correct AnswerverifiedShow Answer

Table 3-3 -Refer to Table 3-3.The opportunity cost of 1 basket for Montana is

Correct AnswerverifiedShow Answer

The gains from trade are

Correct AnswerverifiedShow Answer

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 4 tables or 20 chairs,where Sandy can make 6 tables or 18 chairs.Given this,we know that the opportunity cost of 1 chair is

Correct AnswerverifiedShow Answer

Table 3-3 -Refer to Table 3-3.The opportunity cost of 1 birdhouse for Missouri is

Correct AnswerverifiedShow Answer

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.England and Spain both could benefit,relative to a situation in which neither country is specializing,by England specializing in

Correct AnswerverifiedShow Answer

For the following question(s) , use the accompanying table. Table 3-2 -Refer to Table 3-2.Helen has a comparative advantage in

Correct AnswerverifiedShow Answer

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade based on the principle of comparative advantage,Spain will export which product to England?

Correct AnswerverifiedShow Answer

Table 3-4 Brenda and Eric run a business that involves setting up and testing computers. The following table applies. -Refer to Table 3-4.Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct Answerverifieda. If both tasks are divided equally,it ...View AnswerShow Answer

Figure 3-2 -Refer to Figure 3-2.For Ben,the opportunity cost of 1 pound of ice cream is

Correct AnswerverifiedShow Answer

Figure 3-2 -Refer to Figure 3-2.Suppose Ben and Jerry have both decided to produce at point A on their respective production possibilities frontiers.We know that

Correct AnswerverifiedShow Answer

Economists generally support

Correct AnswerverifiedShow Answer

Table 3-3 -Refer to Table 3-3.Montana has an absolute advantage in

Correct AnswerverifiedShow Answer

Figure 3-3 -Refer to Figure 3-3.The opportunity cost of 1 pair of ballet slippers for Fred is

Correct AnswerverifiedShow Answer

Use the accompanying table to answer the following questions: Table 3-6 -Refer to Table 3-6.If England and Spain specialize and trade based on the principle of comparative advantage,England will export which product to Spain?

Correct AnswerverifiedShow Answer

Table 3-5 -Refer to Table 3-5.The opportunity cost of 1 airplane for Japan is

Correct AnswerverifiedShow Answer

Consider a shoemaker and a vegetable farmer.Potentially,trade could benefit both individuals if

Correct AnswerverifiedShow Answer

David Ricardo was the author of

Correct AnswerverifiedShow Answer

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a. If both tasks are divided equally,it ...
View Answer

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Correct Answer
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