100 80 60 40 8 20- Nation 1 I C Pea2Y/X B Pa-1 1 J 0 10 30 50 70 90 110 130 150 140 120 100 8 60 40 20 0 Nation 2 20 40 60 Two products: X and Y Two nations in the world: nation 1 and nation 2 International price: P-1Y/X What product does nation 1 have a comparative advantage in? th P1Y/X 80 100 120 X

100 80 60 40 8 20- Nation 1 I C Pea2Y/X B Pa-1 1 J 0 10 30 50 70 90 110 130 150 140 120 100 8 60 40 20 0 Nation 2 20 40 60 Two products: X and Y Two nations in the world: nation 1 and nation 2 International price: P-1Y/X What product does nation 1 have a comparative advantage in? th P1Y/X 80 100 120 X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is consumer surplus at the world price? Producer surplus at the world price? Who benefits from the free trade and who gets hurt If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus from $200 to $300? What does producer surplus do with the price going from $200 to $300? What does the government gain with the tariff? Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?
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Figure 2-9 Snow cones 240 0 Greenland 200 Popsicles Snow cones 270 0 Iceland O 100 popsicles & 130 snow cones; 100 popsicles & 140 snow scones O 100 popsicles & 140 snow cones; 100 popsicles & 100 snow scones O 140 popsicles & 120 snow cones; 100 popsicles & 130 snow scones none of the above. 180 Popsicles Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles. With the opening of international trade, the agreed price between Iceland and Greenland for popsicles is 1.3. Assume that the country which now imports popsicles (with int'l trade) decides that it will import 100 units of popsicles. The new consumption bundles/points after international trade for Greenland and Iceland, respectively, are?
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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.
What is the range of prices (i.e., the CPC) at which trade can occur? Also, show (a) the possible CPC for each country and (b) the possible production and consumption possibility lines for both countries after trade. Show your work!
nave a n ab je in bothi good because they both produce boots and shirts. 40- 38- 36- B. Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts. 34- 32- 30- 28- 26- 24- 22- 20- 18- 16- 14- 12- 10- 8- C. The United States has an absolute advantage in both goods because it can produce more boots and more shirts. PPFUS. D. Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts. O E. Canada has an absolute advantage in both goods because it can produce more boots and more shirts. US 6- Suppose initially that the United States is consuming 4 boots and 8 shirts and Canada is consuming 18 boots and 2 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades…
Question 10 Please examine the following set of panels. In this model, there are only two nations - Home and ROW - and each can only produce one item - autos. Assume that transportation costs are zero and that these nations have allowed free trade. As autos are imported from one country to another, which of the following can we most reasonable expect to see in the nations illustrated in this model? International Market for Autos Price $12 511 $10 S SA SP Sef 55 54 si S 51 Home Market for Autos 1 2 3 4 3 6 7 Quantity D 9 10 S $11 $10 50 57 50 55 54 53 $2 1 2 3 4 5 Om 679 10 Quantity O Producer surplus in the Home nation will increase because of free trade. O Consumer surplus in the Home nation will increase because of free trade. O Consumer surplus in the ROW nation will increase because of free trade. O Deadweight loss will occur in the ROW nation 2 $12 $11 $10 55 Sa $7 Se 55 54 S $2 $1 Row Market for Autos 1234 6 79 10 Quantity
Refer to Table 19.1. Guatemala has Group of answer choices a comparative advantage in orange production. an absolute advantage in orange production. a comparative advantage in banana production. an absolute advantage in banana production.
Figure 2-9 Snow cones 240 0 Greenland 200 Popsicles A) Greenland Snow cones 270 0 Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles. C) Iceland Refer to Figure 2-9. Which country has a comparative advantage in the production of popsicles? B They have equal productive abilities. D) neither country Iceland 180 Popsicles
00 R Which producer would MOST likely be harmed from free trade? O domestic manufacturers that compete against foreign imports domestic manufacturers that use a lot of imported raw materials O domestic manufacturers that face no foreign competitors O domestic manufacturers that produce goods primarily for export 0 Unit 7 - Chapter 1.xlsx O Topic 2 (2).docx Topic 2 (1).docx Unit 7- Chapter 1.xlsx 73°F ins prt sc delete f8 LL 6) 144 I14 & backspace 7. D. 39 K. 7. sned W N 8