Question 1

Figure 3-4
   
-Refer to Figure 3-4.If Perry and Jordan both spend all of their time writing poems,then total production is

Accepted Answer

A)   3 poems.
B)   6 poems.
C)   12 poems.
D)   24 poems.E) B) and D)
F) A) and D)

Question 2

Figure 3-8
   
-Refer to Figure 3-8.Chile's opportunity cost of one pound of coffee is

Accepted Answer

A)   3/4 pound of soybeans and Colombia's opportunity cost of one pound of coffee is 1/2 pound of soybeans.
B)   3/4 pound of soybeans and Colombia's opportunity cost of one pound of coffee is 2 pounds of soybeans.
C)   4/3 pounds of soybeans and Colombia's opportunity cost of one pound of coffee is 1/2 pound of soybeans.
D)   4/3 pounds of soybeans and Colombia's opportunity cost of one pound of coffee is 2 pounds of soybeans.E) B) and D)
F) C) and D)

Question 3

In one month,Moira can knit 2 sweaters or 4 scarves.In one month,Tori can knit 1 sweater or 3 scarves.Together,they could produce more output in total if Moira knits only sweaters and Tori knits only scarves.

Accepted Answer

A) True 
 B)False

Question 4

Henry can make a bird house in 3 hours and he can make a bird feeder in 1 hour.The opportunity cost to Henry of making a bird house is 1/3 bird feeder.

Accepted Answer

A) True 
 B)False

Question 5

If labor in Mexico is less productive than labor in the United States in all areas of production,

Accepted Answer

A)   then neither nation can benefit from trade.
B)   then Mexico can benefit from trade but the United States cannot.
C)   then the United States will have a comparative advantage relative to Mexico in the production of all goods.
D)   then both Mexico and the United States still can benefit from trade.E) A) and D)
F) B) and C)

Question 6

Table 3-3
Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.
 
-Refer to Table 3-3.Zimbabwe and Portugal would not be able to gain from trade if Zimbabwe's opportunity cost of one toothbrush changed to

Accepted Answer

A)   0 hairbrushes.
B)   5/6 hairbrushes.
C)   6/5 hairbrushes.
D)   Zimbabwe and Portugal can always gain from trade regardless of their opportunity costs.E) A) and D)
F) A) and C)

Question 7

Figure 3-8
   
-Refer to Figure 3-8.If Chile and Colombia switch from each country dividing its time equally between the production of coffee and soybeans to each country spending all of its time producing the good in which it has a comparative advantage,then total production of soybeans will increase by

Accepted Answer

A)   3 pounds.
B)   6 pounds.
C)   9 pounds.
D)   12 pounds.E) A) and C)
F) B) and C)

Question 8

Figure 3-3
   
-Refer to Figure 3-3.Arturo and Dina would not be able to gain from trade if Dina's opportunity cost of one taco changed to

Accepted Answer

A)   1/2 burrito.
B)   3/4 burrito.
C)   4/3 burritos.
D)   2 burritos.E) All of the above
F) None of the above

Question 9

When describing the opportunity cost of two producers,economists use the term

Accepted Answer

A)   natural advantage.
B)   trading advantage.
C)   comparative advantage.
D)   absolute advantage.E) None of the above
F) A) and D)

Question 10

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

Accepted Answer

A)   2 hours
B)   5 hours
C)   20 hours
D)   50 hoursE) None of the above
F) C) and D)

Question 11

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
 
-Refer to Table 3-5.Which of the following combinations of cheese and bread could England not produce in 40 hours?

Accepted Answer

A)   5 units of cheese and 9 units of bread.
B)   10 units of cheese and 7.5 units of bread.
C)   20 units of cheese and 5 units of bread.
D)   30 units of cheese and 2.5 units of bread.E) B) and C)
F) A) and D)

Question 12

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.The opportunity cost of 1 mixer for Miguel is

Accepted Answer

A)   1/2 toaster.
B)   1/2 hour of labor.
C)   2 toasters.
D)   8 hours of labor.E) B) and C)
F) A) and C)

Question 13

Assume a farmer has the ability to produce corn and/or beans.Whenever the farmer spends 1 hour less producing corn and 1 hour more producing beans,he reduces his output of corn by 2 bushels and raises his output of beans by 3 bushels.In view of these assumptions,the farmer's production possibilities frontier is bowed out.

Accepted Answer

A) True 
 B)False

Question 14

The opportunity cost of an item is

Accepted Answer

A)   the number of hours that one must work in order to buy one unit of the item.
B)   what you give up to get that item.
C)   always less than the dollar value of the item.
D)   always greater than the cost of producing the item.E) None of the above
F) A) and D)

Question 15

Figure 3-9
   
-Refer to Figure 3-9.Azerbaijan should specialize in the production of

Accepted Answer

A)   bolts and import nails.
B)   nails and import bolts.
C)   both goods and import neither good.
D)   neither good and import both goods.E) All of the above
F) A) and D)

Question 16

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 17

Harry is a computer company executive,earning $200 per hour managing the company and promoting its products.His daughter Quinn is a high school student,earning $6 per hour helping her grandmother on the farm.Harry's computer is broken.He can repair it himself in one hour.Quinn can repair it in 10 hours.Harry's opportunity cost of repairing the computer is lower than Quinn's.

Accepted Answer

A) True 
 B)False

Question 18

Figure 3-8
   
-Refer to Figure 3-8.Colombia would incur an opportunity cost of 24 pounds of coffee if it increased its production of soybeans by

Accepted Answer

A)   12 pounds.
B)   18 pounds.
C)   36 pounds.
D)   48 pounds.E) B) and C)
F) B) and D)

Question 19

Figure 3-10
Alice and Betty's Production Possibilities in one 8-hour day.
   
-Refer to Figure 3-10.Which of the following prices would result in an mutually advantageous trade for Alice and Betty?

Accepted Answer

A)   100 pizzas for 100 pitchers of lemonade
B)   100 pizzas for 125 pitchers of lemonade
C)   100 pizzas for 180 pitchers of lemonade
D)   100 pizzas for 220 pitchers of lemonadeE) B) and D)
F) All of the above

Question 20

Table 3-12
 
-Refer to Table 3-1.For the farmer,the opportunity cost of 1 pound of potatoes is

Accepted Answer

A)   0.625 pound of meat.
B)   1.0 pounds of meat.
C)   1.6 pounds of meat.
D)   3.2 pounds of meat.E) C) and D)
F) A) and C)

Exam 3: Interdependence and the Gains From Trade

Figure 3-4 -Refer to Figure 3-4.If Perry and Jordan both spend all of their time writing poems,then total production is

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 prices would result in an mutually advantageous trade for Alice and Betty?

Correct Answer
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Table 3-3 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-3.Zimbabwe and Portugal would not be able to gain from trade if Zimbabwe's opportunity cost of one toothbrush changed to

Correct Answer
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Figure 3-8 -Refer to Figure 3-8.Chile's opportunity cost of one pound of coffee is

Correct Answer
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Henry can make a bird house in 3 hours and he can make a bird feeder in 1 hour.The opportunity cost to Henry of making a bird house is 1/3 bird feeder.

Correct Answer
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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.The opportunity cost of 1 mixer for Miguel is

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

Correct Answer
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Table 3-12 -Refer to Table 3-1.For the farmer,the opportunity cost of 1 pound of potatoes is

Correct Answer
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In one month,Moira can knit 2 sweaters or 4 scarves.In one month,Tori can knit 1 sweater or 3 scarves.Together,they could produce more output in total if Moira knits only sweaters and Tori knits only scarves.

Correct Answer
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When describing the opportunity cost of two producers,economists use the term

Correct Answer
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The opportunity cost of an item is

Correct Answer
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If labor in Mexico is less productive than labor in the United States in all areas of production,

Correct Answer
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Figure 3-9 -Refer to Figure 3-9.Azerbaijan should specialize in the production of

Correct Answer
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Figure 3-3 -Refer to Figure 3-3.Arturo and Dina would not be able to gain from trade if Dina's opportunity cost of one taco changed to

Correct Answer
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Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. -Refer to Table 3-5.Which of the following combinations of cheese and bread could England not produce in 40 hours?

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Figure 3-8 -Refer to Figure 3-8.Colombia would incur an opportunity cost of 24 pounds of coffee if it increased its production of soybeans by

Correct Answer
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Figure 3-5 -Refer to Figure 3-5.If Hosne must work 0.5 hour to make each purse,then her production possibilities frontier is based on how many hours of work?

Correct Answer
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Exam 3: Interdependence and the Gains From Trade

Figure 3-4 -Refer to Figure 3-4.If Perry and Jordan both spend all of their time writing poems,then total production is

Correct AnswerverifiedShow Answer

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 prices would result in an mutually advantageous trade for Alice and Betty?

Correct AnswerverifiedShow Answer

Table 3-3 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. -Refer to Table 3-3.Zimbabwe and Portugal would not be able to gain from trade if Zimbabwe's opportunity cost of one toothbrush changed to

Correct AnswerverifiedShow Answer

Figure 3-8 -Refer to Figure 3-8.Chile's opportunity cost of one pound of coffee is

Correct AnswerverifiedShow Answer

Henry can make a bird house in 3 hours and he can make a bird feeder in 1 hour.The opportunity cost to Henry of making a bird house is 1/3 bird feeder.

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.The opportunity cost of 1 mixer for Miguel is

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Tom Brady should probably not mow his own lawn because

Correct AnswerverifiedShow Answer

Table 3-12 -Refer to Table 3-1.For the farmer,the opportunity cost of 1 pound of potatoes is

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In one month,Moira can knit 2 sweaters or 4 scarves.In one month,Tori can knit 1 sweater or 3 scarves.Together,they could produce more output in total if Moira knits only sweaters and Tori knits only scarves.

Correct AnswerverifiedShow Answer

When describing the opportunity cost of two producers,economists use the term

Correct AnswerverifiedShow Answer

The opportunity cost of an item is

Correct AnswerverifiedShow Answer

If labor in Mexico is less productive than labor in the United States in all areas of production,

Correct AnswerverifiedShow Answer

Figure 3-9 -Refer to Figure 3-9.Azerbaijan should specialize in the production of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 3-3 -Refer to Figure 3-3.Arturo and Dina would not be able to gain from trade if Dina's opportunity cost of one taco changed to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. -Refer to Table 3-5.Which of the following combinations of cheese and bread could England not produce in 40 hours?

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Figure 3-8 -Refer to Figure 3-8.Colombia would incur an opportunity cost of 24 pounds of coffee if it increased its production of soybeans by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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