Homework #4 Micro-Economics

Olivia bakes cakes and Andrew grows corn. Olivia and Andrew both like to eat cake and eat corn. In which of the following cases is it impossible for both Olivia and Andrew to benefit from trade?

A production possibilities frontier is a straight line when

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

Table 3-8. Assume that England and Spain each has 24 labor hours available. If each country divides its time equally between the production of cheese and bread, then total production is

Figure 3-2. The fact that the line slopes downward reflects the fact that

Figure 3-3. If Arturo and Dina each divides his/her time equally between the production of tacos and burritos, then total production is

Figure 3-5. If Hosne and Merve both spend all their time making wallets, then total production is...

What must be given up to obtain an item is called....

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...

If Shawn can produce donuts at a lower opportunity cost than Sue, then...

Comparative advantage is related most closely to which of the following?

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...

Specialization and trade are closely linked to...

A person can benefit from specialization and trade by obtaining a good at a price that is...

Table 3-20. What is Brad's opportunity cost of producing one pound of beef?

Table 3-20. What is Theresa'a opportunity cost of producing one bushel of wheat?

Table 3-20. Brad has an absolute advantage in the production of...

Table 3-20. Brad has a comparative advantage in the production of...

Table 3-20. At which of the following prices would both Brad and Theresa gain from trade with each other?

Figure 3-14. Arturo's opportunity cost of one burrito is...

Figure 3-14. Arturo should specialize in the production of...

Figure 3-14. At which of the following prices would both Arturo and Dina gain from trade with each other?

Figure 3-14. 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

Trade between individuals

Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to trade....