Arithmetic Quiz 2

1. Suppose that there are two countries (Home and Foreign) that produce two goods. Home's wages are 100% greater than Foreign's wages. Will trade be possible between Home and Foreign?

2. According to the Ricardian principle of comparative advantage, international trade increases a nation's total output because:

3. Assume the MPLt = 5 tennis rackets and MPLb = 4 baseball bats. If the economy has 100 workers, then the economy can produce:

4. Our home equilibrium reflects the concepts of competitive markets in the following way(s):

5. (Table: Output in the U.S. and China) Using the data in the table, what will happen to the U.S. labor force after trade occurs with China? يوجد جدول

6. If the maximum number of cloth produced is 300 and the maximum number of cloth produced is 600, then with a MPLcloth = 2, what is the number of workers in the economy and what is the MPLcloth?

7. If this economy produces no cloth, i) how many units of wheat are possible?___ ii) What is the opportunity cost of cloth in terms of wheat ___; iii) which is most desirable point for consumers; iv) which is least desirable for consumers __; and v) Equilibrium in the absence of international trade ) في رسمة

8. If the opportunity cost is constant (the PPF is a straight line), then a country will:

9. Trade between two nations is not possible if they have:

10. 17. Suppose that the table provided gives values of price indices for Ghana's exports and imports in 2006 and in 2007. Did Ghana's terms of trade improve, deteriorate, or not change between 2006 and 2007? جدول

11. Homer and Teddy are stranded on a desert island. To feed themselves each day they can either catch fish or pick fruit. In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. Homer could pick 100 pieces of fruit or catch 150 fish. Which of the following is correct?

12. Assume the MPLc = 2 cars is on the x-axis and the MPLb = 5 boats is on the y-axis. There are 150 workers in this hypothetical economy; the slope of the PPF for this economy with respect to a boat is __ and the maximum number of boats that can be produced ___:

13. The figure gives Home's international trading pattern. Point P is production with trade, and point C is consumption with trade. i) Which product does Home export__ ii) which product does home import __?, and ii) What is the international price of chemicals___? رسمه

14. Assumptions for the problem: Suppose that a farmer spends 1000 hours/year growing wheat, we multiply the MPLW/hour*1000 hours = 27.5bu*1000=27,500 bushels in the US and 0.1*1000=100 bu. In the table above the productivity of workers in the textile, apparel and wheat sectors are given for the United States and China. i) The average worker in the United States produces _____ more apparel sales than China; ii) in the United States to produce an additional $1000 worth of apparel sales, ____ bushels of wheat must be forgone; and in China to produce an additional $1000 worth of apparel sales, ____ bushels of wheat must be forgone. يوجد جدول

15. Chile and Argentina each produce jellybeans and peanut butter using labor as their only resource. Each country has 1,000 hours of labor. In Chile, 1 hour produces 1 pound of jellybeans and 2 hours produce 1 pound of peanut butter. In Argentina, 1 hour produces 1 pound of jellybeans and 3 hours produces 1 pound of peanut butter. When they do not trade with each other, Chile consumes 600 pounds of jellybeans and 200 pounds of peanut butter, and Argentina consumes 400 pounds of jellybeans and 200 pounds of peanut butter. i) In order for Chile to gain from trade, the price of jellybeans must be less than__; ii) Argentina's gains from trade will be largest when the price of jellybeans is__: iii) What is the opportunity cost of a pound of peanut butter in Chile___?; and iv) How many pounds of peanut butter and jellybeans do the two countries jointly produce when the specialize and trade with each other___?:

16. In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. i) International trade will occur between the United States and the United Kingdom so long as 1 ton of steel trades for__, ii The United Kingdom will gain the most from trade if__, and iii) Which statement below is correct?__,

17. If a home country is exporting corn and importing bikes and if the relative price Pc/Pb is increasing, then:

18. Deb and Pete have volunteered to help their favorite charity mail out fundraiser information. The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes. If Deb spends all her time assembling packets, how many can she assemble ___and what is her opportunity cost for assembling 1 packet____? رسم بياني

19. Assume the MPLc = 2 cars is on the x-axis and the MPLb = 5 boats is on the y-axis. There are 150 workers in this hypothetical economy; the slope of the PPF for this economy with respect to cars is __ and the maximum number of cars that can be produced ___:

20. Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. i) the table above gives their production possibilities and ii) With specialization and trade, Sweet Pansy produces ________ and Blue Violet produces ________.. يوجد جدول