101) Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a gallon of wine in France is

A) 0.33 pound of beef.

B) 0.5 pound of beef.

C) 2 pounds of beef.

D) 3 pounds of beef.

102) Use the above table. Assuming constant opportunity costs, a comparative advantage in producing wine is possessed by

A) neither Argentina or France.

B) both Argentina and France.

C) Argentina.

D) France.

103) Use the above table. Assuming constant opportunity costs, a comparative advantage in producing beef is possessed by

A) neither Argentina or France.

B) both Argentina and France.

C) Argentina.

D) France.

104) Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange

A) is 2.5 gallons of wine for 1 pound of beef, and Argentina imports beef.

B) 4 gallons of wine for 1 pound of beef, and France imports beef.

C) 0.2 pound of beef for 1 gallon of wine, and Argentina imports wine.

D) 8 pounds of beef for 1 gallon of wine, and France imports wine.

105) Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange

A) is 7 gallons of wine for 1 pound of beef, and Argentina imports beef.

B) 0.25 gallons of wine for 1 pound of beef, and France imports beef.

C) 0.25 pounds of beef for 1 gallon of wine, and Argentina imports wine.

D) 0.4 pounds of beef for 1 gallon of wine, and France imports wine.

106) Specialization allows for

A) more consumption for all trading partners.

B) more consumption for the trading partner with the comparative advantage.

C) more consumption for the trading partner with the absolute advantage.

D) equal consumption among trading partners.

107) An effect of international trade is

A) the increase in the average price of goods as the cost of transportation has to be included.

B) the transmission of ideas around the world.

C) that only countries that have absolute advantage in producing a good can participate.

D) that the United States has a trade surplus.

108) If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country

A) can consume more than they could without trade.

B) can produce more than they could without trade.

C) will have a lower standard of living.

D) will be exploited by the second nation.

109) Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day.  Ethel can either produce a maximum of eight pies or two cakes in a day.  Fred’s opportunity cost to produce one cake is

A) one-half pie.

B) two pies.

C) six pies.

D) four pies.

110) Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day.  Ethel can either produce a maximum of eight pies or two cakes in a day.  Ethel’s opportunity cost to produce one cake is

A) one-half pie.

B) two pies.

C) six pies.

D) four pies.