Question 1

What is the term for a good that is produced abroad and sold domestically?

Accepted Answer

A)   a quota
B)   a tariff
C)   an import
D)   an exportE) A) and B)
F) A) and C)

Question 2

Differences in opportunity cost allow for gains from trade.

Accepted Answer

A) True 
 B)False

Question 3

Figure 3-2 
-Refer to Figure 3-2.Assume that Cliff and Paul were both producing wheat and corn,and both were dividing their time equally between the two.Then they decide to specialize in the product for which they have a comparative advantage.What would happen to the production of corn?

Accepted Answer

A)   It would increase by 1 bushel.
B)   It would increase by 2 bushels.
C)   It would increase by 3 bushels.
D)   It would increase by 4 bushels.E) B) and D)
F) B) and C)

Question 4

Table 3-5  ​
-Refer to Table 3-5.Which country has an absolute or comparative advantage in each product?

Accepted Answer

A)   Japan has an absolute advantage in both goods,and Canada has a comparative advantage in cars.
B)   Japan has an absolute advantage in both goods,and Canada has a comparative advantage in neither good.
C)   Japan has an absolute advantage in cars,and Canada has a comparative advantage in airplanes.
D)   Japan has an absolute advantage in airplanes,and Canada has a comparative advantage in cars.E) A) and B)
F) B) and C)

Question 5

If it takes Canadian workers fewer hours to produce every good than it takes German workers,Canada cannot gain from trade with Germany.

Accepted Answer

A) True 
 B)False

Question 6

Table 3-1 
-Refer to Table 3-1.What is the opportunity cost of 1 kg of meat for the farmer?

Accepted Answer

A)   1 / 3 hour of labour
B)   3 hours of labour
C)   3 kg of potatoes
D)   1 / 3 kg of potatoesE) A) and B)
F) All of the above

Exam 3: Interdependence and the Gains From Trade

If it takes Canadian workers fewer hours to produce every good than it takes German workers,Canada cannot gain from trade with Germany.

Correct Answer
verified

What is the term for a good that is produced abroad and sold domestically?

Correct Answer
verified

Table 3-5 -Refer to Table 3-5.Which country has an absolute or comparative advantage in each product?

Correct Answer
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Figure 3-2 -Refer to Figure 3-2.Assume that Cliff and Paul were both producing wheat and corn,and both were dividing their time equally between the two.Then they decide to specialize in the product for which they have a comparative advantage.What would happen to the production of corn?

Correct Answer
verified

Table 3-1 -Refer to Table 3-1.What is the opportunity cost of 1 kg of meat for the farmer?

Correct Answer
verified

Differences in opportunity cost allow for gains from trade.

Correct Answer
verified

Exam 3: Interdependence and the Gains From Trade

If it takes Canadian workers fewer hours to produce every good than it takes German workers,Canada cannot gain from trade with Germany.

Correct AnswerverifiedShow Answer

What is the term for a good that is produced abroad and sold domestically?

Correct AnswerverifiedShow Answer

Table 3-5 ​ -Refer to Table 3-5.Which country has an absolute or comparative advantage in each product?

Correct AnswerverifiedShow Answer

Figure 3-2 -Refer to Figure 3-2.Assume that Cliff and Paul were both producing wheat and corn,and both were dividing their time equally between the two.Then they decide to specialize in the product for which they have a comparative advantage.What would happen to the production of corn?

Correct AnswerverifiedShow Answer

Table 3-1 -Refer to Table 3-1.What is the opportunity cost of 1 kg of meat for the farmer?

Correct AnswerverifiedShow Answer

Differences in opportunity cost allow for gains from trade.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Table 3-5 -Refer to Table 3-5.Which country has an absolute or comparative advantage in each product?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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