Interdependence and the Gains from Trade 507
31.
Refer to Table 3-6. Which of the following represents Zimbabwe’s and Portugal’s production
possibilities frontiers when each country has 60 minutes of machine time available?
a.
Zimbabwe Portugal
b.
Zimbabwe Portugal
c.
Zimbabwe Portugal
d.
Zimbabwe Portugal
508 Interdependence and the Gains from Trade
32.
Refer to Table 3-6. Assume that Zimbabwe and Portugal each has 180 machine minutes
available. If each
country divides its time equally between the production of toothbrushes and
hairbrushes, then total production is
a.
24 toothbrushes and 12 hairbrushes.
b.
48 toothbrushes and 24 hairbrushes.
c.
96 toothbrushes and 48 hairbrushes.
d.
720 toothbrushes and 1440 hairbrushes.
33.
Refer to Table 3-6. Which of the following combinations of toothbrushes and hairbrushes could
Portugal produce
in 30 minutes?
a.
1 toothbrush and 4 hairbrushes
b.
4 toothbrushes and 2 hairbrushes
c.
5 toothbrushes and 6 hairbrushes
d.
6 toothbrushes and 5 hairbrushes
34.
Refer to Table 3-6. Which of the following combinations of toothbrushes and hairbrushes could
Zimbabwe not produce in 120 minutes?
a.
5 toothbrushes and 11 hairbrushes
b.
10 toothbrushes and 9 hairbrushes
c.
20 toothbrushes and 6 hairbrushes
d.
30 toothbrushes and 3 hairbrushes
Table 3-7
Assume that the farmer and the rancher can switch between producing meat and producing
potatoes at a constant
rate.
Labor Hours Needed
to
Make 1 Pound of
Pounds Produced
in 24 Hours
Meat
Potatoes
Meat
Potatoes
Farmer
6
4
4
6
Rancher
3
8
8
3
35.
Refer to Table 3-7. Assume that the farmer and the rancher each has 24 labor hours available.
If each person
divides his time equally between the production of meat and potatoes, then total
production is
a.
6 pounds of meat and 4.5 pounds of potatoes.
b.
5.5 pounds of meat and 8 pounds of potatoes.
c.
12 pounds of meat and 9 pounds of potatoes.
d.
5 pounds of meat and 5.5 pounds of potatoes.
36.
Refer to Table 3-7. Which of the following combinations of meat and potatoes could the farmer
produce in 24
hours?
a.
1 pound of meat and 8 pounds of potatoes.
b.
2 pounds of meat and 2 pounds of potatoes.
c.
1 pounds of meat and 5 pounds of potatoes.
d.
3 pounds of meat and 2 pounds of potatoes.
37.
Refer to Table 3-7. Which of the following combinations of meat and potatoes could the rancher
not produce in
24 hours?
a.
5 pounds of meat and 1 pounds of potatoes.
b.
2 pounds of meat and 2 pounds of potatoes.
c.
1 pounds of meat and 3 pounds of potatoes.
d.
4 pounds of meat and 1 pound of potatoes.
Interdependence and the Gains from Trade 511
Table 3-8
Assume that England and Spain can switch between producing cheese and producing bread at a
constant rate.
Labor Hours Needed
to Make 1 Unit of
Number of Units
Produced in 24 Hours
Cheese
Bread
Cheese
Bread
England
2
3
12
8
Spain
3
6
8
4
38.
Refer 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
a.
10 units of cheese and 6 units of bread.
b.
25 units of cheese and 7.5 units of bread.
c.
20 units of cheese and 12 units of bread.
d.
12 units of cheese and 8 units of bread.
39.
Refer to Table 3-8. Which of the following combinations of cheese and bread could Spain
produce in 24 hours?
a.
4 units of cheese and 3 units of bread.
b.
6 units of cheese and 1 units of bread.
c.
7 units of cheese and 1.5 units of bread.
d.
3 units of cheese and 3 units of bread.
40.
Refer to Table 3-8. Which of the following combinations of cheese and bread could England not
produce in 24
hours?
a.
5 units of cheese and 3 units of bread.
b.
6 units of cheese and 4 units of bread.
c.
8 units of cheese and 3 units of bread.
d.
7 units of cheese and 2 units of bread.
41.
Refer to Table 3-8. We could use the information in the table to draw a production possibilities
frontier for
England and a second production possibilities frontier for Spain. If we were to do this,
measuring cheese along the
horizontal axis, then
a.
the slope of England’s production possibilities frontier would be -0.67 and the slope of Spain’s
production possibilities frontier would be –0.5.
b.
the slope of England’s production possibilities frontier would be -1.5 and the slope of Spain’s
production possibilities frontier would be –2.
c.
the slope of England’s production possibilities frontier would be -.75 and the slope of Spain’s
production possibilities frontier would be –1.
d.
the slope of England’s production possibilities frontier would be -2 and the slope of Spain’s
production possibilities frontier would be -.5.
42.
Refer to Table 3-8. We could use the information in the table to draw a production possibilities
frontier for
England and a second production possibilities frontier for Spain. If we were to do this,
measuring bread along the
horizontal axis, then
a.
the slope of England’s production possibilities frontier would be -0.67 and the slope of Spain’s
production possibilities frontier would be -0.5.
b.
the slope of England’s production possibilities frontier would be -1.5 and the slope of Spain’s
production possibilities frontier would be –2.
c.
the slope of England’s production possibilities frontier would be -.75 and the slope of Spain’s
production possibilities frontier would be –1.
d.
the slope of England’s production possibilities frontier would be -2 and the slope of Spain’s
production possibilities frontier would be -.5.
Table 3-9
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a
constant rate.
Hours Needed
To Make 1
Amount Produced
in 60 Hours
mixer
toaster
mixers
toasters
Maya
6
3
10
20
Miguel
10
5
6
12
43.
Refer to Table 3-9. Assume that Maya and Miguel each has 60 hours available. If each person
divides his/her
time equally between the production of mixers and toasters, then total production is
a.
8 mixers and 16 toasters.
b.
3.5 mixers and 6 toasters.
c.
15 mixers and 9 toasters.
d.
20 mixers and 12 toasters.
44.
Refer to Table 3-9. Which of the following combinations of mixers and toasters could Maya
produce in 60 hours?
a.
5 mixers and 12 toasters.
b.
6 mixers and 4 toasters.
c.
7 mixers and 7 toasters.
d.
8 mixers and 5 toasters.
45.
Refer to Table 3-9. Which of the following combinations of mixers and toasters could Miguel
not produce in 80
hours?
a.
5 mixers and 6 toasters.
b.
6 mixers and 5 toasters.
c.
7 mixers and 2 toasters.
d.
4 mixers and 8 toasters.
46.
Refer to Table 3-9. We could use the information in the table to draw a production possibilities
frontier for Maya
and a second production possibilities frontier for Miguel. If we were to do this,
measuring mixers along the
horizontal axis, then
a.
the slope of Maya’s production possibilities frontier would be -2 and the slope of Miguel’s
production possibilities frontier would be –2.
b.
the slope of Maya’s production possibilities frontier would be -0.5 and the slope of Miguel’s
production possibilities frontier would be -0.5.
c.
the slope of Maya’s production possibilities frontier would be -1.67 and the slope of Miguel’s
production possibilities frontier would be -1.67.
d.
the slope of Maya’s production possibilities frontier would be -0.6 and the slope of Miguel’s
production possibilities frontier would be -0.6.
47.
Refer to Table 3-9. We could use the information in the table to draw a production possibilities
frontier for Maya
and a second production possibilities frontier for Miguel. If we were to do this,
measuring toasters along the
horizontal axis, then
a.
the slope of Maya’s production possibilities frontier would be -2 and the slope of Miguel’s
production possibilities frontier would be –2.
b.
the slope of Maya’s production possibilities frontier would be -0.5 and the slope of Miguel’s
production possibilities frontier would be –0.5.
c.
the slope of Maya’s production possibilities frontier would be -1.67 and the slope of Miguel’s
production possibilities frontier would be -1.67.
d.
the slope of Maya’s production possibilities frontier would be -0.6 and the slope of Miguel’s
production possibilities frontier would be –0.6.
Table 3-10
Assume that Japan and Korea can switch between producing cars and producing airplanes at a
constant rate.
Hours Needed
to Make 1
Quantity Produced
in 2400 Hours
Car
Airplane
Cars
Airplanes
Japan
30
150
80
16
Korea
50
150
48
16
48.
Refer to Table 3-10. Assume that Japan and Korea each has 2400 hours available. If each
country divides its
time equally between the production of cars and airplanes, then total production is
a.
40 cars and 8 airplanes.
b.
64 cars and 16 airplanes.
c.
80 cars and 16 airplanes.
d.
128 cars and 32 airplanes.
49.
Refer to Table 3-10. We could use the information in the table to draw a production possibilities
frontier for Japan
and a second production possibilities frontier for Korea. If we were to do this,
measuring cars along the horizontal
axis, then
a.
the slope of Japan’s production possibilities frontier would be -5 and the slope of Korea’s
production possibilities frontier would be –3.
b.
the slope of Japan’s production possibilities frontier would be -0.2 and the slope of Korea’s
production possibilities frontier would be -0.33.
c.
the slope of Japan’s production possibilities frontier would be 0.2 and the slope of Korea’s
production possibilities frontier would be 0.33.
d.
the slope of Japan’s production possibilities frontier would be 5 and the slope of Korea’s
production possibilities frontier would be 3.
50.
Refer to Table 3-10. We could use the information in the table to draw a production possibilities
frontier for Japan
and a second production possibilities frontier for Korea. If we were to do this,
measuring airplanes along the
horizontal axis, then
a.
the slope of Japan’s production possibilities frontier would be -5 and the slope of Korea’s
production possibilities frontier would be –3.
b.
the slope of Japan’s production possibilities frontier would be -0.2 and the slope of Korea’s
production possibilities frontier would be -0.33.
c.
the slope of Japan’s production possibilities frontier would be 0.2 and the slope of Korea’s
production possibilities frontier would be 0.33.
d.
the slope of Japan’s production possibilities frontier would be 5 and the slope of Korea’s
production possibilities frontier would be 3.
Table 3-11
Assume that Max and Min can switch between producing mittens and producing hats at a
constant rate.
Labor Hours Needed
to Make 1
Quantity Produced
in 36 Hours
Mittens
Hats
Mittens
Hats
Max
2
6
18
6
Min
2
4
18
9
51.
Refer to Table 3-11. Assume that Max and Min each has 36 labor hours available. If each
person divides his/her
time equally between the production of mittens and hats, then total
production is
a.
18 mittens and 6 hats.
b.
18 mittens and 7.5 hats.
c.
16 mittens and 12 hats.
d.
36 mittens and 15 hats.
52.
Refer to Table 3-11. Which of the following points would not be on Max’s production
possibilities frontier, based on a 36-hour production period?
a.
(18 mittens, 0 hats)
b.
(12 mittens, 2 hats)
c.
(6 mittens, 4 hats)
d.
(2 mittens, 6 hats)
53.
Refer to Table 3-11. Which of the following points would be on Min’s production possibilities
frontier, based on a
36-hour production period?
a.
(3 mittens, 8 hats)
b.
(8 mittens, 5 hat)
c.
(10 mittens, 4 hats)
d.
More than one of the above would be on Min’s production possibilities frontier.
Table 3-12
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can
switch between
setting up and testing computers at a constant rate. The following table applies.
Minutes Needed to
Number of Computers
Set Up or Tested in a
40-Hour Week
Set Up 1
Computer
Test 1
Computer
Computers
Set Up
Computers
Tested
Barb
48
?
50
40
Jim
30
40
80
60
54.
Refer to Table 3-12. The number of minutes needed by Barb to test a computer is
a. 36.
b.
48.
c.
60.
d.
64.
55.
Refer to Table 3-12. Which of the following points would not be on Barb’s production
possibilities frontier, based
on a 40–hour week?
a.
(0 computers set up, 40 computers tested)
b.
(8 computers set up, 32 computers tested)
c.
(25 computers set up, 20 computers tested)
d.
(30 computers set up, 16 computers tested)
56.
Refer to Table 3-12. Which of the following points would not be on Jim’s production possibilities
frontier, based
on a 40–hour week?
a.
(0 computers set up, 60 computers tested)
b.
(40 computers set up, 30 computers tested)
c.
(60 computers set up, 12 computers tested)
d.
(72 computers set up, 6 computers tested)
Table 3-13
Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita
and Shantala can
switch between programming and testing cellular phones at a constant rate. The
following table applies.
Minutes Needed to
Number of Cellular Phones
Programmed or Tested in a
40-Hour Week
Program 1
Cellular
Test 1
Cellular Phone
Cellular Phones
Programmed
Cellular Phones
Tested
Juanita
?
2
160
1200
Shantala
10
4
240
600
57.
Refer to Table 3-13. The number of minutes needed by Juanita to program a cellular phone is
a.
4.
b.
5.
c.
7.5.
d.
15.
58.
Refer to Table 3-13. Which of the following points would be on Juanita‘s production possibilities
frontier, based on
a 40–hour week?
a.
(120 cellular phones programmed, 295 cellular phones tested)
b.
(130 cellular phones programmed, 225 cellular phones tested)
c.
(140 cellular phones programmed, 155 cellular phones tested)
d.
Both (a) and (b) would be on Juanita’s production possibilities frontier.
59.
Refer to Table 3-13. Which of the following points would be on Shantala’s production
possibilities frontier, based
on a 40–hour week?
a.
(120 cellular phones programmed, 250 cellular phones tested)
b.
(180 cellular phones programmed, 150 cellular phones tested)
c.
(240 cellular phones programmed, 600 cellular phones tested)
d.
More than one of the above would be on Shantala’s production possibilities frontier.
Table 3-14
Assume that Nick and Faldo can switch between producing wheat and producing cloth at a
constant rate.
Quantity Produced in 1 Hour
Bushels of Wheat
Yards of Cloth
Nick
8
12
Faldo
6
15
60.
Refer to Table 3–14. Assume that Nick and Faldo each has 2 hours available. If each person
divides his time
equally between the production of wheat and cloth, then total production is
a.
8 bushels of wheat and 15 yards of cloth.
b.
14 bushels of wheat and 27 yards of cloth.
c.
16 bushels of wheat and 30 yards of cloth.
d.
28 bushels of wheat and 34 yards of cloth.
524 Interdependence and the Gains from Trade
Table 3-15
Labor Hours Needed to
Make 1
Pound of:
Amount Produced in 40 hours
Meat
Potatoes
Meat
Potatoes
Farmer
8 hours/pound
5 hours/pound
5 pounds
8 pounds
Rancher
4 hours/pound
10 hours/pound
10 pounds
4 pounds
61.
Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available.
If each person
divides his time equally between the production of meat and potatoes, then total
production is
a.
5 pounds of meat and 4 pounds of potatoes.
b.
6 pounds of meat and 7.5 pounds of potatoes.
c.
7.5 pounds of meat and 6 pounds of potatoes.
d.
10 pounds of meat and 8 pounds of potatoes.
62.
Refer to Table 3-15. Which of the following combinations of meat and potatoes could the
farmer produce in 40
hours?
a.
1 pound of meat and 7 pounds of potatoes.
b.
2 pounds of meat and 5 pounds of potatoes.
c.
3 pounds of meat and 3 pounds of potatoes.
d.
4 pounds of meat and 2 pounds of potatoes.
63.
Refer to Table 3-15. Which of the following combinations of meat and potatoes could the
rancher not produce in
40 hours?
a.
2 pounds of meat and 3 pounds of potatoes.
b.
3 pounds of meat and 3 pounds of potatoes.
c.
4 pounds of meat and 2 pounds of potatoes.
d.
5 pounds of meat and 2 pound of potatoes.
Table 3-16
The following table contains some production possibilities for an economy for a given month.
Blankets
Coats
8
600
12
?
16
200
64.
Refer to Table 3–16. If the production possibilities frontier is bowed outward, then “?” could be
a.
200.
b.
300.
c.
400.
d.
500.
65.
Refer to Table 3-16. If the production possibilities frontier is a straight line, then “?” must be
a.
200.
b.
300.
c.
400.
d.
500.
Table 3-17
The following table contains some production possibilities for an economy for a given year.
Cakes
Pies
10
600
20
400
30
?
66.
Refer to Table 3-17. If the production possibilities frontier is bowed outward, then “?” could be
a.
180.
b.
200.
c.
220
d.
240.