the following to answer questions 9-10: 12. The absolute value of the slope of the Joanna's Time Allocation Budget Line production possibility frontier at any point Income A) gives the autarky price of the good on the vertical axis. B) is found by dividing the horizontal change by a vertical change. $500 C) gives the quantity of the good on the vertical axis that must be given up to produce an additional unit of the good on the horizontal axis. D) gives the autarky price of the good on the horizontal axis relative to the autarky price of the good on the vertical axis. 40 13. If Japan must give up the production of 75 Hours of leisure computers to produce 25 additional cellular telephones, the opportunity cost of producing 4 9. (Figure: Joanna's Time Allocation Budget cellular telephones is computers. Line) The figure Joanna's Time Allocation Budget A) Line depicts what happens when she can choose B) 12 how to spend 40 hours. What is Joanna's wage rate? C) 71 A) $10.00 D) 79 BY $12.50 C) $40.00 14. Chile has a comparative advantage over the D $15.00 United States in copper. Which of the following is a source of this comparative advantage? 10 (Figure: Joanna's Time Allocation Budget A) mild temperatures Line) Joanna's Time Allocation Budget Line depicts B) large deposits of copper ore C) what happens when she can choose how to spend 40 no opportunity cost associated with copper hours. If Joanna's wage rate increases and she ends production up working more hours, for her: D) high tariffs on copper from other nations A) the substitution effect dominates 15. Honduras exports clothing to the United B) the income effect dominates States. and the United States exports bulldozers to the substitution and income effects cancel Honduras. Proponents of the Heckscher-Ohlin each other out model would explain this pattern of trade by stating D the substitution effect becomes ineffective. that : A) Honduras has an advantage in the In a single year. the Netherlands can raise technology used in clothing production. while the 100 tons of beef or produce 1.000 boxes of tulips. in United States has an advantage in the technology the same growing season, Belgium can raise 501 tons used in bulldozer production. of beef or produce 750 boxes of tulips. In autarky Honduras's climate is more conducive to the opportunity cost of beef. producing clothing. while the United States' climate is higher in the Netherlands than in Belgium, is more conducive to producing bulldozers. is lower in the Netherlands than in Belgium, ) Honduras has a relatively large endowment is the same in the Netherlands as in Belgium. of factors of production for making clothing. while D cannot be determined in either country! the United States has a relatively large endowment of factors of production for making bulldozers. 1 Honduras has a factor intensity in capital and the I'mted States has a factor intensity in labor