Micro 3-2

By definition, exports are

Trade between countries

Tom Brady should probably not mow his own lawn because

For a country producing two goods, the opportunity cost of one good will be the inverse of the opportunity cost of the other good.

Differences in opportunity cost allow for gains from trade.

For both parties to gain from trade, the price at which they trade must lie between the two opportunity costs.

Assume a farmer has the ability to produce corn and/or beans. Whenever the farmer spends 1 hour less producing corn and 1 hour more producing beans, he reduces his output of corn by 2 bushels and raises his output of beans by 3 bushels. In view of these assumptions, the farmer's production possibilities frontier is bowed out.

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,

Colombia should specialize in the production of

Which of the following is not an example of the principle that trade can make everyone better off?