Question 1

Figure 3-26
Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier  
-Refer to Figure 3-26.Who has a comparative advantage in making muffins?

Accepted Answer

The answer of Figure 3-26
Mary's Production Possibilities Frontier Kate's Production...

Question 2

Explain the difference between absolute advantage and comparative advantage.Which is more important in determining trade patterns,absolute advantage or comparative advantage? Why?

Accepted Answer

Absolute advantage refers to productivit...

Question 3

Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies.Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies.Who,if either,has an absolute advantage baking bread? Who,if either,has an absolute advantage making cookies?

Accepted Answer

Jennifer has an abso...

Question 4

Scenario 3-2
In country A a worker who works 40 hours can produce 200 pounds of rice or 100 pounds of broccoli.In country B a worker who works 40 hours can produce 160 pounds of rice or 120 pounds of broccoli.
-Refer to Scenario 3-2.Which country,if either,has a comparative advantage producing broccoli? Defend your answer using the numbers given.

Accepted Answer

Country B has a comparative ad...

Question 5

Country A and country B both produce shirts and shorts.Country B has an absolute advantage producing both shirts and shorts.Is there any condition under which the two countries could gain from trade?

Accepted Answer

Yes, if each has a c...

Question 6

Define comparative advantage.

Accepted Answer

Comparative advantage means a ...

Question 7

Scenario 3-1
The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time.
Greg's Production Possibilities
Catherine's Production Possibilities  
-Refer to Scenario 3-1.Which if any good(s)does Catherine have an absolute advantage producing?

Accepted Answer

Catherine does not h...

Question 8

Figure 3-26
Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier  
-Refer to Figure 3-26.Who has a comparative advantage in making cookies?

Accepted Answer

The answer of Figure 3-26
Mary's Production Possibilities Frontier Kate's Production...

Question 9

Define absolute advantage.

Accepted Answer

Absolute advantage m...

Question 10

Scenario 3-1
The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time.
Greg's Production Possibilities
Catherine's Production Possibilities  
-Refer to Scenario 3-1.What is Greg's opportunity cost of producing cake? Explain how you derived your answer.

Accepted Answer

It takes Greg 2 hours to produ...

Question 11

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour.Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour.Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Accepted Answer

Frank has the comparative adva...

Question 12

Under what conditions is an economy's production possibilities frontier also its consumption possibilities frontier?

Accepted Answer

When the economy is ...

Question 13

Scenario 3-1
The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time.
Greg's Production Possibilities
Catherine's Production Possibilities  
-Refer to Scenario 3-1.What is Greg's opportunity cost of producing ice cream? Explain how you derived your answer.

Accepted Answer

It takes Greg 1 hour to produc...

Question 14

With eight hours of work Elmer can produce 20 pounds of carrots or 15 pounds of peas.With eight hours Bugs can produce 10 pounds of carrots or 7.5 pounds of peas.Can Elmer and Bugs gain from trade? Defend your answer.

Accepted Answer

No, their opportunit...

Question 15

Sally can make 8 cups of soup per hour or 20 crackers per hour.Harry can make 10 cups of soup per hour or 30 crackers per hour.Can Sally and Harry gain from trade? If so,what is the range of prices of crackers for soup at which they would both find trade advantageous?

Accepted Answer

Yes. More than 2.5 c...

Question 16

It takes Heather 1 hour to change the oil in the car and 20 minutes to do the dishes.It takes Zach 1.5 hours to change the oil in the car.For Zach to have a comparative advantage changing the oil it must take him more than ------ minutes to do the dishes.

Accepted Answer

The answer of It takes Heather 1 hour to change...

Question 17

Charlotte can produce pork and beans and can switch between producing them at a constant rate.If it takes her 10 hours to produce a pound of pork and 5 hours to produce a pound of beans,what is her opportunity cost of pork and what is her opportunity cost of beans?

Accepted Answer

The opportunity cost of pork i...

Question 18

Scenario 3-1
The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time.
Greg's Production Possibilities
Catherine's Production Possibilities  
-Refer to Scenario 3-1.Which if any good(s)does Greg have an absolute advantage producing?

Accepted Answer

Greg has an absolute...

Question 19

Figure 3-26
Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier  
-Refer to Figure 3-26.What is Mary's opportunity cost of one muffin?

Accepted Answer

The answer of Figure 3-26
Mary's Production Possibilities Frontier Kate's Production...

Question 20

Scenario 3-2
In country A a worker who works 40 hours can produce 200 pounds of rice or 100 pounds of broccoli.In country B a worker who works 40 hours can produce 160 pounds of rice or 120 pounds of broccoli.
-Refer to Scenario 3-2.Give a range of prices in terms of pounds of rice per pound of broccoli at which the two countries would be both be willing to trade.

Accepted Answer

Any price which is less than 2...

Exam 3: Interdependence and the Gains From Trade: Part A

Figure 3-26 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-26.Who has a comparative advantage in making muffins?

Correct Answer
verified

It takes Heather 1 hour to change the oil in the car and 20 minutes to do the dishes.It takes Zach 1.5 hours to change the oil in the car.For Zach to have a comparative advantage changing the oil it must take him more than ------ minutes to do the dishes.

Correct Answer
verified

Correct Answer
verified
Country B has a comparative ad...
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Country A and country B both produce shirts and shorts.Country B has an absolute advantage producing both shirts and shorts.Is there any condition under which the two countries could gain from trade?

Correct Answer
verified
Yes, if each has a c...
View Answer

Define comparative advantage.

Correct Answer
verified
Comparative advantage means a ...
View Answer

Explain the difference between absolute advantage and comparative advantage.Which is more important in determining trade patterns,absolute advantage or comparative advantage? Why?

Correct Answer
verified
Absolute advantage refers to productivit...
View Answer

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour.Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour.Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Correct Answer
verified
Frank has the comparative adva...
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Sally can make 8 cups of soup per hour or 20 crackers per hour.Harry can make 10 cups of soup per hour or 30 crackers per hour.Can Sally and Harry gain from trade? If so,what is the range of prices of crackers for soup at which they would both find trade advantageous?

Correct Answer
verified
Yes. More than 2.5 c...
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Figure 3-26 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-26.Who has a comparative advantage in making cookies?

Correct Answer
verified

Define absolute advantage.

Correct Answer
verified
Absolute advantage m...
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Under what conditions is an economy's production possibilities frontier also its consumption possibilities frontier?

Correct Answer
verified
When the economy is ...
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Correct Answer
verified
It takes Greg 1 hour to produc...
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Figure 3-26 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-26.What is Mary's opportunity cost of one muffin?

Correct Answer
verified

Scenario 3-1 The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time. Greg's Production Possibilities Catherine's Production Possibilities -Refer to Scenario 3-1.Which if any good(s)does Catherine have an absolute advantage producing?

Correct Answer
verified
Catherine does not h...
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Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies.Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies.Who,if either,has an absolute advantage baking bread? Who,if either,has an absolute advantage making cookies?

Correct Answer
verified
Jennifer has an abso...
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With eight hours of work Elmer can produce 20 pounds of carrots or 15 pounds of peas.With eight hours Bugs can produce 10 pounds of carrots or 7.5 pounds of peas.Can Elmer and Bugs gain from trade? Defend your answer.

Correct Answer
verified
No, their opportunit...
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Correct Answer
verified
It takes Greg 2 hours to produ...
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Charlotte can produce pork and beans and can switch between producing them at a constant rate.If it takes her 10 hours to produce a pound of pork and 5 hours to produce a pound of beans,what is her opportunity cost of pork and what is her opportunity cost of beans?

Correct Answer
verified
The opportunity cost of pork i...
View Answer

Scenario 3-1 The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time. Greg's Production Possibilities Catherine's Production Possibilities -Refer to Scenario 3-1.Which if any good(s)does Greg have an absolute advantage producing?

Correct Answer
verified
Greg has an absolute...
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Correct Answer
verified
Any price which is less than 2...
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Exam 3: Interdependence and the Gains From Trade: Part A

Figure 3-26 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-26.Who has a comparative advantage in making muffins?

Correct AnswerverifiedShow Answer

It takes Heather 1 hour to change the oil in the car and 20 minutes to do the dishes.It takes Zach 1.5 hours to change the oil in the car.For Zach to have a comparative advantage changing the oil it must take him more than ------ minutes to do the dishes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedCountry B has a comparative ad...View AnswerShow Answer

Country A and country B both produce shirts and shorts.Country B has an absolute advantage producing both shirts and shorts.Is there any condition under which the two countries could gain from trade?

Correct AnswerverifiedYes, if each has a c...View AnswerShow Answer

Define comparative advantage.

Correct AnswerverifiedComparative advantage means a ...View AnswerShow Answer

Explain the difference between absolute advantage and comparative advantage.Which is more important in determining trade patterns,absolute advantage or comparative advantage? Why?

Correct AnswerverifiedAbsolute advantage refers to productivit...View AnswerShow Answer

Frank can make 20 hot dogs an hour or 10 pints of potato salad an hour.Earnest can make 30 hot dogs an hour or 20 pints of potato salad an hour.Who has the comparative advantage making hot dogs and who has the comparative advantage making potato salad?

Correct AnswerverifiedFrank has the comparative adva...View AnswerShow Answer

Sally can make 8 cups of soup per hour or 20 crackers per hour.Harry can make 10 cups of soup per hour or 30 crackers per hour.Can Sally and Harry gain from trade? If so,what is the range of prices of crackers for soup at which they would both find trade advantageous?

Correct AnswerverifiedYes. More than 2.5 c...View AnswerShow Answer

Figure 3-26 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-26.Who has a comparative advantage in making cookies?

Correct AnswerverifiedShow Answer

Define absolute advantage.

Correct AnswerverifiedAbsolute advantage m...View AnswerShow Answer

Under what conditions is an economy's production possibilities frontier also its consumption possibilities frontier?

Correct AnswerverifiedWhen the economy is ...View AnswerShow Answer

Correct AnswerverifiedIt takes Greg 1 hour to produc...View AnswerShow Answer

Figure 3-26 Mary's Production Possibilities Frontier Kate's Production Possibilities Frontier -Refer to Figure 3-26.What is Mary's opportunity cost of one muffin?

Correct AnswerverifiedShow Answer

Scenario 3-1 The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time. Greg's Production Possibilities Catherine's Production Possibilities -Refer to Scenario 3-1.Which if any good(s)does Catherine have an absolute advantage producing?

Correct AnswerverifiedCatherine does not h...View AnswerShow Answer

Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies.Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies.Who,if either,has an absolute advantage baking bread? Who,if either,has an absolute advantage making cookies?

Correct AnswerverifiedJennifer has an abso...View AnswerShow Answer

With eight hours of work Elmer can produce 20 pounds of carrots or 15 pounds of peas.With eight hours Bugs can produce 10 pounds of carrots or 7.5 pounds of peas.Can Elmer and Bugs gain from trade? Defend your answer.

Correct AnswerverifiedNo, their opportunit...View AnswerShow Answer

Correct AnswerverifiedIt takes Greg 2 hours to produ...View AnswerShow Answer

Charlotte can produce pork and beans and can switch between producing them at a constant rate.If it takes her 10 hours to produce a pound of pork and 5 hours to produce a pound of beans,what is her opportunity cost of pork and what is her opportunity cost of beans?

Correct AnswerverifiedThe opportunity cost of pork i...View AnswerShow Answer

Scenario 3-1 The production possibilities frontiers below show how much Greg and Catherine can each produce in 8 hours of time. Greg's Production Possibilities Catherine's Production Possibilities -Refer to Scenario 3-1.Which if any good(s)does Greg have an absolute advantage producing?

Correct AnswerverifiedGreg has an absolute...View AnswerShow Answer

Correct AnswerverifiedAny price which is less than 2...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified
Country B has a comparative ad...
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Correct Answer
verified
Yes, if each has a c...
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Correct Answer
verified
Comparative advantage means a ...
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Correct Answer
verified
Absolute advantage refers to productivit...
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Correct Answer
verified
Frank has the comparative adva...
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Correct Answer
verified
Yes. More than 2.5 c...
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Correct Answer
verified

Correct Answer
verified
Absolute advantage m...
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Correct Answer
verified
When the economy is ...
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Correct Answer
verified
It takes Greg 1 hour to produc...
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Correct Answer
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Correct Answer
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Catherine does not h...
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Correct Answer
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Jennifer has an abso...
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Correct Answer
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No, their opportunit...
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Correct Answer
verified
It takes Greg 2 hours to produ...
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Correct Answer
verified
The opportunity cost of pork i...
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Correct Answer
verified
Greg has an absolute...
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Correct Answer
verified
Any price which is less than 2...
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