10 ptsUsing the table below and assuming constant costs of production between the United Statesand China, figure the opportunity costs for each country in terms of steel and aluminum.[Hint; this is like the farmer and rancher example and the others we discussed in Chapter 21.Steel and AluminumProductionUnited States ChinaSteel (tons)Aluminum (tons)12001500800500United States: 1 ton of aluminum costs1 ton of steel coststons of steel.tons of aluminum.China:1 ton of aluminum costs1 ton of steel coststons of steel.tons of aluminum.

Understanding Opportunity Cost:Opportunity cost is the value of the next best alternative that must…

Answered: 10 pts Using the table below and…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 2SCQ: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40...

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Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
Occasionally, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Explain why such a statement is economically impossible.
Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?
Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?
Please assist wtih vii
Figure 3-1 An Example of China-U.S. Trade Possibilities Textiles (labor intensive) 32 20 19. 8 China PPF 12 A Terms of Trade 20 US PPF Aircraft (capital intensive) Refer to Figure 3-1. What are the terms of trade represented? The terms of trade are 2/3 textile per aircraft. The terms of trade are 1½ textiles per aircraft. The terms of trade are 1 textile per aircraft. The terms of trade are 1½ aircraft per textile.
Lorenzo and Neha are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa Barley (Bushels per acre) (Bushels per acre) Lorenzo 40 8 Neha 28 7 On the following graph, use the blue line (circle symbol) to plot Lorenzo's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Neha's PPF. 120 108 Lorenzo's PPF 96 CI O
2
I'm confused on how to calculate the gains from trade. I don't know what to do.
Refer to Table 19.1. Mexico has Group of answer choices a comparative advantage but not an absolute advantage in orange production. an absolute advantage and a comparative advantage in orange production. a comparative advantage but not an absolute advantage in banana production. an absolute advantage and a comparative advantage in banana production.

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