Deck 17: Comparative Advantage and the Gains From International Trade

Question 1

If goods are produced abroad but consumed domestically,

A)those goods are termed imports
B)international trade has not occurred
C)the domestic economy is economically inefficient
D)there are no gains from specialization
E)those goods are termed exports

Answer 1

those goods are termed imports

Question 2

Assume the North Island of New Zealand can produce 2,000 fishing poles or 20 kayaks per day and the South Island can produce 1,000 fishing poles or 5 kayaks per day.The South Island has a comparative advantage in producing kayaks.

Answer 2

False

Question 3

Mutually beneficial international trade between two countries depends on

A)each country having an absolute advantage in the production of a different good
B)one country being worse (requiring more resources)than the other in the production of every good
C)at least one country having a zero opportunity cost in the production of at least one good
D)one country being relatively better at producing a good (which makes the other country relatively worse at it)
E)one country being relatively better at producing all goods

Answer 3

one country being relatively better at producing a good (which makes the other country relatively worse at it)

Question 4

Which of the following statements is true?

A)Exports tend to decrease economic efficiency.
B)A nation should specialize in producing a good in which it has an absolute advantage.
C)A nation should specialize in producing a good only when it has both an absolute and a comparative advantage.
D)A nation should specialize in producing a good in which it has a comparative advantage.
E)International trade does not reflect the benefits of specialization.

Question 5

If Armenia can produce rugs more efficiently than any other country,it does not necessarily benefit from producing rugs for international trade.

Question 6

Assume that India has a comparative advantage in producing a computer game.The United States has an absolute advantage in producing the same game.Mutually advantageous trade will have India producing and exporting the game while the United States will specialize in producing something else.

Question 7

A nation has a comparative advantage in producing a good if it has a lower opportunity cost of producing that good than other countries have.

Question 8

If Japan can produce each unit of steel using fewer resources than Canada uses,

A)Canada has an absolute advantage in steel production
B)Japan has a comparative advantage in steel production
C)Canada has a comparative advantage in steel production
D)Canada may have an absolute advantage in producing steel
E)Japan has an absolute advantage in steel production

Question 9

Which of the following must be true in order to engage in advantageous international trade?

A)It must be producing at a point on its production possibilities frontier.
B)It must be economically efficient.
C)It must have a comparative advantage in producing one of the goods being traded.
D)There must be no potential Pareto improvements available in the economy.
E)It must have an absolute advantage in producing one good being traded.

Question 10

International trade occurs whenever

A)two nations have achieved internal economic efficiency
B)one of the trading nations is self-sufficient
C)one nation can profit from trade at the expense of another
D)two nations can benefit from trading with each other
E)labor is cheaper in one country than in another

Question 11

Figure 16-1
Number of workers needed to produce one unit of each of the following goods:

What can be said regarding absolute advantage in production for the two countries shown in Figure 16-1?

A)Colombia has an absolute advantage in producing both calculators and radios.
B)Korea has an absolute advantage only in producing calculators.
C)Korea has an absolute advantage in producing both radios and calculators.
D)Neither country has an absolute advantage in producing radios.
E)Colombia has an absolute advantage only in producing calculators.

Question 12

If all we know is that the opportunity cost of a car equals 100 refrigerators in France,and 200 refrigerators in Italy,we can conclude

A)nothing about which nation has the absolute advantage in refrigerator production
B)that France has a comparative advantage in refrigerator production
C)that mutually beneficial international trade might involve the market exchange of 1 car for 80 refrigerators (whereby France would gain more than Italy)
D)that mutually beneficial international trade might involve the market exchange of 1 car for 300 refrigerators (whereby Italy would gain more than France)
E)that France has the absolute advantage in car production

Question 13

Figure 16-1
Number of workers needed to produce one unit of each of the following goods:

What can be said regarding comparative advantage in production for the two countries shown in Figure 16-1?

A)Colombia has a comparative advantage in producing both calculators and radios.
B)Korea has a comparative advantage in producing radios and Colombia has a comparative advantage in producing calculators.
C)Korea has a comparative advantage in producing both radios and calculators.
D)Neither country has a comparative advantage in producing radios.
E)Colombia has a comparative advantage only in producing radios.

Question 14

For each watch Switzerland produces,it gives up the opportunity to produce 50 pounds of cheese.Germany can produce one watch at a cost of 100 pounds of cheese.Which of the following is true?

A)The opportunity cost of producing watches is greater in Switzerland.
B)The opportunity cost of producing cheese is greater in Switzerland.
C)The opportunity cost of producing cheese is the same in both countries.
D)It is impossible to compare costs because the two countries use different technologies.
E)In the two countries combined,the cost of producing one watch is 150 pounds of cheese.

Question 15

Since World War II,there has been a worldwide movement away from free trade policies.

Question 16

In general,a society will benefit more,the more interdependent it is.

Question 17

If Panama has a high opportunity cost of producing salmon steaks,then it should export salmon steaks.

Question 18

Suppose that a nation has an absolute advantage in the production of all goods.In this instance,it

A)has no incentive to engage in international trade
B)is producing at a point on its production possibilities frontier
C)has no unemployment
D)also has a comparative advantage in the production of those goods
E)should specialize in producing the goods for which it has a lower opportunity cost than other countries

Question 19

Assume that Spain can produce a commodity using fewer resources than any other country.Spain will export this commodity even if other countries have a lower opportunity cost of producing it.

Question 20

In general,a society will benefit more,the more self-sufficient it is.

Question 21

Figure 16-2
Number of workers needed to produce one unit of each of the following goods:

In Figure 16-2,if Colombia produces four fewer calculators,then how many more radios could it produce?

A)8
B)2
C)16
D)4
E)12

Question 22

Figure 16-3
Quantities of goods that can be produced in one day with available resources:

In Figure 16-3,if Costa Rica and Panama have identical resources,then Panama has a(n)

A)absolute advantage only in producing bicycles
B)comparative advantage in producing both bicycles and rugs
C)absolute advantage only in producing rugs
D)comparative advantage only in producing rugs
E)absolute advantage in producing both rugs and bicycles

Question 23

Consider the following table on output producible per 100 labor hours:

Which of the following statements is correct?

A)All of the following are correct.
B)France has a comparative advantage in producing computers.
C)Italy's opportunity cost is 4 units of wine per computer.
D)France produces more computers than Italy does.
E)France produces more wine than Italy does.

Question 24

For each watch Switzerland produces,it gives up the opportunity to produce 50 pounds of cheese.Germany can produce one watch at a cost of 100 pounds of cheese.Which of the following is true?

A)The opportunity cost of producing watches is lower in Switzerland.
B)The opportunity cost of producing cheese is lower in Switzerland.
C)The opportunity cost of producing watches is the same in both countries.
D)It is impossible to compare costs because the two countries are not the same size.
E)In Germany,the cost of a pound of cheese is one watch.

Question 25

Figure 16-2
Number of workers needed to produce one unit of each of the following goods:

In Figure 16-2,what can be said regarding comparative advantage?

A)Colombia has a comparative advantage in producing radios.
B)Korea has a comparative advantage in producing both radios and calculators.
C)Korea has a comparative advantage in producing calculators.
D)Colombia has a comparative advantage in producing calculators.
E)Colombia has a comparative advantage in producing both radios and calculators.

Question 26

For each watch Denmark produces,it gives up the opportunity to produce 50 pounds of cheese.France can produce two watches at a cost of 150 pounds of cheese.Which of the following is true?

A)Denmark has a comparative advantage in producing both watches and cheese.
B)France has a comparative advantage in producing both watches and cheese.
C)France has the comparative advantage in producing watches.
D)Denmark has the comparative advantage in producing watches.
E)Denmark has the comparative advantage in producing cheese.

Question 27

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one statue is

A)1/2 of a vase
B)1/8 of a vase
C)8 vases
D)16 vases
E)2 vases

Question 28

Suppose that for each automobile Japan produces it must forego producing 40 computers.The United States must forego producing 80 computers for each automobile it produces.Which of the following is true?

A)Japan has a comparative advantage in producing computers.
B)the U.S.has a comparative advantage in producing computers.
C)the U.S.has a comparative advantage in producing automobiles.
D)the U.S.has an absolute advantage in producing automobiles.
E)the opportunity cost of producing computers is the same for Japan and the U.S.

Question 29

Given an opportunity cost of 10 bicycles per 1 sewing machine in Germany and 20 bicycles per 2 sewing machines in Hungary,

A)Neither country has a comparative advantage in the production of either good.
B)Germany has a comparative advantage in the production of sewing machines.
C)Germany has an absolute advantage in the production of sewing machines.
D)Hungary has an absolute advantage in the production of bicycles.
E)Hungary produces more bicycles than Germany does.

Question 30

Figure 16-3
Quantities of goods that can be produced in one day with available resources:

In Figure 16-3,the opportunity cost in Costa Rica of producing one additional bicycle is

A)10 rugs
B)20 rugs
C)4 rugs
D)5 rugs
E)1/5 of a rug

Question 31

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one vase is

A)2 statues
B)8 statues
C)1/2 of a statue
D)16 statues
E)1/16 of a statue

Question 32

Figure 16-3
Quantities of goods that can be produced in one day with available resources:

In Figure 15-3,the opportunity cost in Panama of producing one additional rug is

A)4 bicycles
B)5 bicycles
C)1/4 of a bicycle
D)1/5 of a bicycle
E)2 bicycles

Question 33

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the maximum number of statues that could be produced in one hour is

A)50
B)100
C)80
D)25
E)160

Question 34

Assume Japan must forego producing 60 computers for each automobile it produces.Moreover,the United States can produce one automobile if it forgoes producing 80 computers.Which of the following is true?

A)The United States has a lower opportunity cost of producing automobiles.
B)The United States has a comparative advantage in producing automobiles.
C)Japan has a comparative advantage in producing computers.
D)No trade will occur between Japan and the United States.
E)Japan has a lower opportunity cost of producing automobiles.

Question 35

Figure 16-2
Number of workers needed to produce one unit of each of the following goods:

In Figure 16-2,if Korea produces two fewer radios,then how many more calculators could it produce?

A)12
B)2
C)1
D)4
E)6

Question 36

Consider the following table on labor hours needed per unit of output:

Ignoring nonlabor inputs,which of the following statements is correct?

A)All of the following are correct.
B)The opportunity cost of a computer equals 1/4 unit of wine in Italy.
C)The opportunity cost of a computer equals 1/2 unit of wine in France.
D)Italy has a comparative advantage in computers.
E)Italy has a comparative advantage in wine.

Question 37

Consider the following information on labor hours needed per unit of output:

Ignoring nonlabor inputs,which of the following statements is correct?

A)France has an absolute advantage in the production of both goods.
B)France has a comparative advantage in the production of both goods.
C)the opportunity cost of a computer in Italy is 4 units of wine.
D)the opportunity cost of a unit of wine in France is 2 computers.
E)France produces more computers that Italy produces wine.

Question 38

Comparative advantage is determined by the

A)elasticities of demand for a good in two countries
B)opportunity costs of producing a good in two different countries
C)presence of absolute advantages in production
D)degrees of allocative efficiency within each economy
E)amounts of resources required to produce a good in different countries

Question 39

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the maximum number of vases that could be produced in one hour is

A)400
B)25
C)50
D)100
E)80

Question 40

If Canada can produce 500 TV sets at the cost of 10 cars,while Mexico can produce 1,000 TV sets at the cost of 8 cars,we know the following:

A)Canada has a comparative advantage in TV production.
B)Mexico has the absolute advantage in TV production.
C)The two countries' joint output equals 1,500 TV sets and 18 cars without trade,but it will be higher after proper specialization and trade.
D)Canada has a comparative advantage in car production.
E)Canada produces more cars than Mexico does.

Question 41

The terms of trade

A)equal the ratio of opportunity costs of production in two countries
B)equal the ratio of marginal production costs in two countries
C)is the quantity of one good that is exchanged for one unit of another good
D)are determined by absolute advantage
E)equal the ratio of average production costs in two countries

Question 42

If countries begin to specialize according to comparative advantage,a more efficient use of resources occurs.As a result,the world output of at least one good increases,with no decrease in the output of any other good.

Question 43

Figure 16-4
Number of workers needed to produce one unit of each of the following goods:

In Figure 16-4,which of the following is true?

A)Gains from trade are possible if Korea produces radios and Colombia produces calculators.
B)No gains from trade are possible since neither country has an absolute advantage in producing both radios and calculators.
C)Gains from trade are not possible if Korea produces calculators and Colombia produces radios.
D)No trade will occur because neither country has a comparative advantage in producing either good.
E)No trade will occur because neither country has a comparative advantage in producing both radios and calculators.

Question 44

If 50 units of resources can produce either 1 ton of sugar beets or 100 lb.of ham in Germany,while 90 units of resources can produce either 2 tons of sugar beets or 300 lb.of ham in Poland,

A)Poland has a comparative advantage in producing both goods
B)Germany has a comparative advantage in producing sugar beets
C)neither country has an absolute advantage in producing sugar beets,but Poland has an absolute advantage in producing ham
D)Germany can produce more ham than Poland can
E)mutually beneficial international trade is not possible

Question 45

The limits of the terms of trade between two countries are determined by those countries' opportunity costs of production.

Question 46

The opportunity costs of production in two countries engaged in trade

A)determine which country has an absolute advantage
B)influence their domestic inflation rates
C)lead to a higher level of economic efficiency
D)create shifts of the production possibilities frontiers (PPF's)of both nations
E)define the limits of the terms of trade

Question 47

The terms of trade

A)equal the equilibrium price in a competitive market
B)equal a nation's imports minus its exports
C)determine whether specialization according to comparative advantage is economically rational
D)are equal to 1.0 in market equilibrium
E)determine how the gains from international trade are distributed among countries

Question 48

If Country A can produce a good at a lower opportunity cost than Country B can,

A)there are benefits from trade
B)Country A has an absolute advantage in producing the good
C)economic efficiency has been achieved
D)Country A does not have a comparative advantage in producing the good
E)Country A can sell the good for a higher price abroad

Question 49

Suppose that the opportunity cost of producing a rocking chair in Mexico is 50 basketballs and the opportunity cost of a rocking chair in Japan is 80 basketballs.Japan and Mexico can realize mutual gains if the terms of trade are

A)greater than 80 basketballs per rocking chair,and Japan produces rocking chairs
B)between 50 and 80 basketballs per rocking chair,and Japan produces basketballs
C)greater than 80 basketballs per rocking chair,and Mexico produces basketballs
D)less than 50 basketballs per rocking chair,and Japan produces basketballs
E)between 50 and 80 basketballs per rocking chair,and Japan produces rocking chairs

Question 50

If Armenia can produce two rugs or 100 spy novels in an hour,and Turkey can produce one rug or 50 spy novels in an hour,

A)the terms of trade are 50 spy novels per rug,and Turkey should produce both rugs and spy novels
B)the terms of trade are 50 spy novels per rug,and Turkey should produce only rugs
C)the terms of trade are 50 spy novels per rug,and Armenia should produce only rugs
D)there are no gains from trade
E)the terms of trade are will exceed 50 spy novels per rug,and Armenia should produce both rugs and spy novels

Question 51

A nation should only import those goods for which it has

A)lower opportunity costs than its trading partner
B)higher opportunity costs than its trading partner
C)zero transaction costs
D)lower costs of production than its trading partner
E)absolute advantage in production compared to its trading partner

Question 52

The ratio (in physical units)at which two countries trade goods is known as the

A)opportunity cost
B)marginal social cost
C)price to earnings ratio
D)comparative advantage ratio
E)terms of trade

Question 53

Mutually beneficial trade between two countries is possible only as long as

A)unit costs of production are the same no matter how many units are being produced
B)marginal costs rise as production increases
C)marginal costs are equal to average total costs
D)one country has an absolute advantage in the production of one good,while the other country enjoys a similar advantage in making another good
E)one country has a comparative advantage in the production of one good,while the other country enjoys a comparative advantage in making another good

Question 54

Suppose the opportunity cost is a constant 500 TV sets for 1 car in Canada and 1,000 TV sets for 8 cars in Mexico.Then,if both countries specialize in accordance with their comparative advantage,the production of 1,000 extra TV sets in one country and 1,000 fewer TV sets in the other would imply that the world as a whole can have

A)2 more cars
B)6 more cars
C)8 more cars
D)125 more cars
E)500 more cars

Question 55

If free international trade opens up and a country has a comparative disadvantage in sugar production,we should expect

A)greater sugar consumption in that country
B)higher sugar prices in that country
C)greater sugar production in that country
D)lower sugar prices in sugar-exporting countries
E)greater sugar consumption in sugar-exporting countries

Question 56

When nations trade according to their comparative advantages,

A)one nation has an absolute advantage in producing all goods
B)all opportunity costs of production are the same
C)world economic efficiency falls
D)at least one country is made better off through trade
E)at least one country is made worse off through trade

Question 57

The cost of producing a car in Germany is 2,000 bushels of wheat,and the cost of producing a car in Canada is 1,200 bushels of wheat.The two countries can both benefit if the terms of trade are

A)greater than 2,000 of wheat per car
B)less than 1,200 bushels of wheat per car
C)between 1,200 bushels and 2,000 bushels of wheat per car,and Germany produces wheat
D)between 1,200 bushels and 2,000 bushels of wheat per car,and Germany produces cars
E)between 1,200 bushels and 2,000 bushels of wheat per car,and Canada produces wheat

Question 58

International trade based on the concept of comparative advantage allows trading partners to be better off than if they did not trade.

Question 59

International trade

A)reduces world output of goods and services
B)lowers economic efficiency
C)allows countries to specialize in producing particular products
D)creates opportunity cost differentials in production
E)shifts each economy's production possibilities frontier inward

Question 60

Figure 16-5
Quantities of goods that can be produced in one day with available resources:

In Figure 16-5,which of the following is true?

A)Both countries can benefit from trade if Panama produces bicycles and Costa Rica produces rugs.
B)Both countries can benefit from trade if Panama produces both rugs and bicycles.
C)Both countries can benefit from trade if Panama produces rugs and Costa Rica produces bicycles.
D)Both countries can benefit from trade if Costa Rica produces bicycles and rugs.
E)Neither country can benefit from trade since Panama has an absolute advantage in producing both bicycles and rugs.

Question 61

If the opportunity cost of a television set equals 20 cameras in China,but 10 cameras in Japan,then we know

A)all of the following
B)that China has a comparative advantage in producing cameras
C)that Japan has a comparative advantage in producing TV sets
D)that Japan may well have an absolute disadvantage in producing both goods
E)that market exchange of 1 TV set for 15 cameras would produce not only mutually beneficial trade,but would also split the gains from trade equally between the two countries

Question 62

Objections to free trade

A)arise because trade harms everyone
B)arise when some groups within a nation are harmed by trade
C)arise because importers and exporters are often the same people
D)are inconsistent with economic rationality
E)arise because people prefer not to consume foreign-produced goods

Question 63

If there are high transportation costs

A)the terms of trade will also be high
B)the result could be incomplete specialization
C)large countries will have an advantage in trading with small countries
D)small countries will have an advantage in trading with large countries
E)trade will be based on absolute advantage rather than comparative advantage

Question 64

If a nation begins to export a good,

A)the domestic price of that good will decrease
B)that country will typically erect barriers to trade
C)domestic producers of the good will be harmed
D)domestic consumers of the good will be harmed
E)both domestic consumers and domestic producers will benefit

Question 65

Which of the following correctly describes free international trade in accordance with comparative advantage?

A)It is typically favored by producers in importing countries.
B)It is typically favored by producers in exporting countries,but hated by their workers.
C)It is typically favored by producers in exporting countries,including their workers.
D)It is typically hated by consumers in importing countries.
E)It is typically hated by farmers,but looked upon favorably by manufacturers.

Question 66

If a country begins to import a good,

A)it has a comparative advantage in producing that good
B)it has a comparative advantage in consuming that good
C)domestic consumers are made better off
D)domestic producers are made better off
E)both domestic consumers and domestic producers are harmed

Question 67

Assume that Canadian firms can produce one automobile or 1,000 calculators per day,and that U.S.firms can produce three automobiles or 6,000 calculators per day.The terms of trade should be between

A)1,000 and 2,000 calculators per automobile,and the U.S.should produce both calculators and automobiles
B)1,000 and 6,000 calculators per automobile,and the U.S.should produce automobiles
C)1,000 and 6,000 calculators per automobile,and the U.S.should produce calculators
D)1,000 and 2,000 calculators per automobile,and the U.S.should produce automobiles
E)1,000 and 2,000 calculators per automobile,and Canada should produce automobiles

Question 68

Differences in climate among nations

A)could lead to economic efficiency
B)reduce opportunities for gains from international trade
C)lower the terms of trade in favor of warm-climate nations
D)may create opportunities for international trade
E)raise the terms of trade in favor of warm-climate nations

Question 69

One factor that might lead to reduced trade or incomplete specialization is

A)absolute advantage
B)comparative advantage
C)government-enacted barriers to trade
D)constant opportunity cost
E)decreasing opportunity cost

Question 70

A country that has relatively large amounts of a particular resource at its disposal

A)will tend to have an absolute advantage
B)will trade the resource for some good in which that country has an absolute advantage
C)will tend to have a comparative advantage in goods that make heavy use of that resource
D)will trade the resource for some good in which that country has a comparative advantage
E)will tend to have a low exchange rate

Question 71

If the opportunity cost of production rises as more of a good is produced,

A)the terms of trade will be independent of opportunity costs
B)the production possibilities curve will be a straight line
C)a country will specialize in producing only those goods in which it has a comparative advantage
D)a country should produce any good in which it has an absolute advantage
E)a country may not specialize completely in the goods in which it has comparative advantage

Question 72

Which of the following factors does not help explain incomplete specialization by countries that trade in accordance with comparative advantage?

A)There may be high transportation costs for perishable products or human services.
B)The economies of trading partners may be of vastly different sizes.
C)Opportunity costs of production may not be constant,but may vary with the volume of production.
D)Governments may impose all kinds of barriers to free international trade,such as tariffs and quotas.
E)The cost of making trade deals may have become extremely low because of the existence of the World Trade Organization.

Question 73

Assume that Chile can produce one pound of coffee or 40 pillows in an hour,and that the United States can produce one pound of coffee or 20 pillows in an hour,

A)the terms of trade should be between 20 and 40 pillows per pound of coffee,and the United States should produce both coffee and pillows
B)the terms of trade should be between 20 and 40 pillows per pound of coffee,and Chile should produce pillows
C)the terms of trade should be between 20 and 40 pillows per pound of coffee,and Chile should produce coffee
D)the terms of trade should exceed 40 pillows per pound of coffee,and Chile should produce coffee
E)no trade will occur,since the United States does not have an absolute advantage in producing either good

Question 74

Which of the following statements correctly describes international trade in accordance with comparative advantage?

A)Trade is impossible unless there exists a purely competitive market for foreign exchange.
B)Trade makes all the citizens of the trading countries better off,which is a clear example of a Pareto improvement.
C)Trade may well make some citizens in each trading country worse off.
D)Trade requires the judicious application by government of tariffs and quotas in order to discourage production according to comparative disadvantage.
E)Trade requires that the economies of the trading partners be of roughly equal size (United States versus Andorra just does not work).

Question 75

Objections to free trade

A)often come from those who are harmed by trade
B)make no sense because everyone benefits from trade
C)usually arise outside of the United States
D)are not economically rational
E)reflect a lack of understanding of the benefits of international trade

Question 76

If countries have different resource endowments,trade is usually not possible.

Question 77

When a nation begins to export a good,

A)the domestic price of that good falls
B)less of that good is produced domestically
C)the domestic producers are made better off
D)the domestic consumers are made better off
E)both domestic and foreign consumers will purchase more of it

Question 78

A nation's comparative advantage

A)can almost always be traced to its natural resources
B)is often based on its natural resources
C)is often based on barriers to international trade
D)is reflected in the shape of its demand curve for imported goods
E)is a result of increasing marginal returns

Question 79

When a nation begins to import a good,

A)the domestic price of that good will fall
B)domestic consumers are harmed
C)the domestic price of that good will rise
D)domestic producers benefit
E)the quantity produced domestically will rise

Question 80

Once a nation has been producing a good or service for some time,

A)its supply curve for that product is vertical
B)its supply curve for that product is horizontal at the world price
C)it often develops a comparative advantage in producing that good or service
D)its moves along its production possibilities frontier and produces more of it
E)its production possibilities frontier shifts outward