4. If both Country A and Country B produce only the good in which they have a comparative advantage in, how much coffee and tea will exist in Economia? 5. Do gains from specialization and trade exist? Explain why or why not.
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- MTN ".|“lE 260B/s O CN 12% O 17:08 4G 4G Vodafone GH|Stay Safe The outputs per laborer per day in the production of computers and autos in Nation 1 and in Nation 2 are given in the table below. Output per Laborer Nation 1 Nation 2 Autos 10 1 Computers 1 20 a) Which nation has the absolute advantage in each good? b) Fill in the blanks in the table below, assuming that one unit of labor is transferred in each country towards the good in which it has the absolute advantage. Changes in Production from Reallocating One Unit of Labor Nation 1 Nation 2 World Change in Production of Autos Change in Production of Computers |Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.Question & Use the table to answer the question. Apples Bananas Country A Country B 800 500 O a O b Ос Od 1500 If all resources of Country A and Country B were dedicated toward the production of either apples or bananas, the maximum production of each is summarized in the table above. In order for both countries to benefit from trade, which country should specialize in banana productio and why? 1600 Review Answers Country A since it has the absolute advantage in banana production. Country A since it has the comparative advantage in banana production. Country B since it has the comparative advantage in banana production. Country B since it has the absolute advantage in banana production. Saved at 8:09 am Support | Schoology Blog | PRIVACY POLICY | Terms of
- Wagons Tricycles James 16 32 Click to select your answer The table above shows the output per week of two people, James and Lucy. They can either devote their time to making wagons or making tricycles. Which of the following statements true? O A. Lucy has a comparative advantage in making both products. O B. Lucy has a comparative advantage in making tricycles and James in making wagons. O C. James has a comparative advantage in making both products. O D. Lucy has a comparative advantage in making wagons and James in making tricycles. Lucy 18 24QUESTION 11 If the demand for a good increases when incomes rise and decreases when incomes fall, the good is called a normal good. See O True O False QUESTION 12 When exports are subsidized, O a. nations export products in which they have an absolute advantage O b. the amounts of actual labor, raw material, and capital costs of production decrease O C. gains from trade in terms of world output increase O d. nations export products in which they have a comparative advantage e. income is transferred from tax payers to the exporters of subsidized goods QUESTION 13 The graph shows the market for wheat in an economy. The equilibrium price and quantity of wheat bought and sold in the don trade are P2 and Q2, respectively. If the world price of wheat is P3, the change in producer surplus due to free trade will be eq Figure 18.1 Domestic Supply PA Click Save and Submit to save and submit. Click Save All Ansuwers to save all answers.24 of 38 For each hour worked, a U.S. worker can produce 4 loaves of bread, or 2 tons of steel. Canadian workers can produce 2 loaves of bread, or 1 ton of steel per hour. The information indicates that: O A. Canada has comparative advantage in steel, and the U.S. has comparative advantage in bread. O B. neither country has comparative advantage in steel or bread. O C. Canada has comparative advantage in bread, and the U.S. has comparative advantage in steel. O D. the U.S. has comparative advantage in both steel and bread. Unsure
- Table 3-21 Assume that Jamaica and Norway can switch between producing coolers and producing radios at a constant rate. The following table shows the number of coolers or number of radios each country can produce in one day. Output Produced in One Day Coolers Radios lamaica 12 16 Norway 24 Refer to Table 3-21. At which of the following prices would both Jamaica and Norway gain from trade with each other? O a. 1 radio for 1 cooler O b. 1 radio for 4 coolers O c. 1 radio for 10 coolers O d. Jamaica and Norway would both gain from trade at all of the above prices.Fish M 2 - 0 1 Friday 78 Coconut Fish 3 N 0 Robinson 7 8 Coconut Time left 0:12:01 [MUST SHOW WORK] Figure F shows the production possibilities of Robinson and Friday per hour. The comparative advantage is for Select one: O A. Friday in gathering coconuts and Robinson in catching fish. O B. neither Robinson nor Friday. OC. Robinson in producing both goods. D. Robinson in gathering coconuts and Friday in catching fish. O E. Robinson in gathering coconuts. Clear my choice ?The table to the right shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles. |Barney 28 Fred Pogo Sticks 24 Which of the following statements is true? Unicycles 18 14 O A. Barney has an absolute advantage in making both products. O B. Barney has an absolute advantage in making pogo sticks and Fred in making unicycles. OC. Fred has an absolute advantage in making both products. O D. Barney has an absolute advantage in making unicycles and Fred in making pogo sticks.
- 公。 < CO R 2C QUESTION 16 Free trade restricts a nation's ability to specialize in specific commodities that may allow for more efficient use of resources. O True O False QUESTION 17 Large countries tend to be more than small countries. O True O False QUESTION 18 The community indifference curve represents the tastes of demand preferences in a nation or region. True O.False Save All Answe MAR 12 tv 082 MacBook Air 08 DD F 7 F1 F2 F3 F4 F5 F6 F8 F10 i %23 2$ 2. 3. 4. 5. 96. 8. 6 P. A K G. L. B. N 10. option command command optiona) Suppose the two countries engage in international trade, and that the international relativeprice of good (T) is 3 tons of good (D). Can there be mutually beneficial international tradebetween the two countries? If so, which are the patterns of comparative advantage, ofproduction and consumption, of exports and imports between the two countries? What arethe gains from trade for each country? b)Brazil and Colombia can both produce either bananas or coffee. Brazil can produce either 16 pounds of co and 0 pounds of coffee. Colombia can produce either 20 pounds of coffee and 0 pounds of bananas or 4 Bananas (pounds) Coffee (pounds) Country Brazil 64 Colombia 40 20 The opportunity cost of producing 1 pound of bananas for Brazil is O 16 O 1 O 0.25 16 O 48 pounds of coffee.