7. Comparative advantage and import competition Bulgaria joined the European Union (EU) in the early 2000s and began to face intense import competition from other EU members, such as Greece. Suppose you have the following data on labor productivity for apparel and wine production in Bulgaria and Greece. Assume that apparel and wine production are measured in constant dollars reflecting the value of the products. Use the Ricardian model to analyze possible effects on each country's apparel and wine industries when answering the questions that follow. Country Bulgaria Greece Sales per Employee Apparel (Dollars per year) 50,000 84,000 The table suggests that Greece has an absolute advantage over Bulgaria in Wine (Dollars per year) 40,000 42,000 The table suggests that wages in Bulgaria are O True O False As a result of Bulgaria's joining the EU, employment in Bulgaria is likely to fall in ✓in Greece. True or False: The degree of openness of the Bulgarian economy will have a positive impact on the level of employment. and a comparative advantage in

7. Comparative advantage and import competition Bulgaria joined the European Union (EU) in the early 2000s and began to face intense import competition from other EU members, such as Greece. Suppose you have the following data on labor productivity for apparel and wine production in Bulgaria and Greece. Assume that apparel and wine production are measured in constant dollars reflecting the value of the products. Use the Ricardian model to analyze possible effects on each country's apparel and wine industries when answering the questions that follow. Country Bulgaria Greece Sales per Employee Apparel (Dollars per year) 50,000 84,000 The table suggests that Greece has an absolute advantage over Bulgaria in Wine (Dollars per year) 40,000 42,000 The table suggests that wages in Bulgaria are O True O False As a result of Bulgaria's joining the EU, employment in Bulgaria is likely to fall in ✓in Greece. True or False: The degree of openness of the Bulgarian economy will have a positive impact on the level of employment. and a comparative advantage in

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

7. Comparative advantage and import competition
Bulgaria joined the European Union (EU) in the early 2000s and began to face intense import competition from other EU members, such as Greece.
Suppose you have the following data on labor productivity for apparel and wine production in Bulgaria and Greece. Assume that apparel and wine
production are measured in constant dollars reflecting the value of the products.
Use the Ricardian model to analyze possible effects on each country's apparel and wine industries when answering the questions that follow.
Country
Bulgaria
Greece
Sales per Employee
Apparel
(Dollars per year)
50,000
84,000
The table suggests that Greece has an absolute advantage over Bulgaria in
Wine
(Dollars per year)
40,000
42,000
The table suggests that wages in Bulgaria are
O True
O False
As a result of Bulgaria's joining the EU, employment in Bulgaria is likely to fall in
✓in Greece.
True or False: The degree of openness of the Bulgarian economy will have a positive impact on the level of employment.
and a comparative advantage in

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