8. Refer to the Table below. Which of the following statements about the two nations iscorrect based on the principle of comparative advantage?W.45East Production PossibilitiesWest Production PossibilitiesProductAВProductAВC15Food24168Food453015Clothing 08.Clothing 0412Ic: 3f10150.3c:1fa. East should specialize in the production of food.b. West has a comparative advantage in the production of clothing.West has a comparative advantage in the production of foodd. West should specialize in the production of clothing.С.bns 2siedua scola s1s 8 bns A aboog Jari secgou2.As booxs nsh bluow9. Refer to the Table below.East Production PossibilitiesWest Production PossibilitiesProductAВProductACFood24168Food453015boogClothing 048.12Clothing 01015Assume that East had specialized in the production of food at alternative A and thatWest had produced both products at alternative C. If the nations now specializedbased on comparative advantage, the gains from specialization and trade are:a. 2 units of food and 4 units of clothing.b. 2 units of clothing and 4 units of food.6 units of food and 2 units of clothing.С.d. 6 units of clothing and 2 units of food.

The curve that depicts various combinations of goods and services that could be produced in an…

8. Refer to the Table below. Which of the following statements about the two nations is correct based on the principle of comparative advantage? W. East Production Possibilities West Production Possibilities 15 Product A C Product A C D 15 Food 24 16 8. Food 45 30 15 Clothing 0 4 8. 12 Clothing 0 10 15 Ic: 3f 0.3c:1f a. East should specialize in the production of food. b. West has a comparative advantage in the production of clothing. West has a comparative advantage in the production of food d. West should specialize in the production of clothing. С.

8. Refer to the Table below. Which of the following statements about the two nations is correct based on the principle of comparative advantage? W. East Production Possibilities West Production Possibilities 15 Product A C Product A C D 15 Food 24 16 8. Food 45 30 15 Clothing 0 4 8. 12 Clothing 0 10 15 Ic: 3f 0.3c:1f a. East should specialize in the production of food. b. West has a comparative advantage in the production of clothing. West has a comparative advantage in the production of food d. West should specialize in the production of clothing. С.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 7 65+ 60+ 55 50 45 40 282828 35+ 30 25 20 15 10 5+ Cay China's PPF + 5 10 15 20 25 30 35 40 45 50 55 Computer OA. 40 cars and 20 computers B. 40 cars and zero computers C. 20 cars and 20 computers 个 Cor 65+ 60- 55 50+ 45+ Refer to figures above. Suppose that China and Japan fully specialize in the goods in which they have a comparative advantage. Trade is then initiated between the two countries and 20 units of cars are exchanged for 20 units of computers. How many units of cars and computers will China be able to consume after trade? D.40 cars and 40 computers 40- 35+ 30 25- 20 15 10- 5 Japan's PPF 5 10 15 20 25 30 35 40 45 50 55 60 Computer
5. The price of trade Suppose that France and Switzerland both produce jeans and olives. France's opportunity cost of producing a crate of olives is 5 pairs of jeans while Switzerland's opportunity cost of producing a crate of olives is 10 pairs of jeans. By comparing the opportunity cost of producing olives in the two countries, you can tell that production of olives and has a comparative advantage in the production of jeans. has a comparative advantage in the Suppose that France and Switzerland consider trading olives and jeans with each other. France can gain from specialization and trade as long as it of jeans for each crate of olives it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than of olives for each pair of jeans it exports to France. receives more than Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of jeans) would allow both Switzerland and France to gain…
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5. The price of trade Suppose that Poland and Luxembourg both produce boots and wheat. Poland's opportunity cost of producing a bushel of wheat is 4 pairs of boots while Luxembourg's opportunity cost of producing a bushel of wheat is 12 pairs of boots. By comparing the opportunity cost of producing wheat in the two countries, you can tell that Poland production of wheat and Luxembourg has a comparative advantage in the production of boots. has a comparative advantage in the Suppose that Poland and Luxembourg consider trading wheat and boots with each other. Poland can gain from specialization and trade as long as it receives more than of boots for each bushel of wheat it exports to Luxembourg. Similarly, Luxembourg can gain from trade as long as it of wheat for each pair of boots it exports to Poland. receives more than Based on your answer to the last question, which of the following prices of trade (that is, price of wheat in terms of boots) would allow both Luxembourg and Poland to…
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QUESTION 9 If Pedro can produce more bread in one day than Roger can produce in one day, then а. Pedro has a comparative advantage in the production of bread. b. Roger has a comparative advantage in the production of bread. C. Pedro has an absolute advantage in the production of bread. d. Roger has an absolute advantage in the production of bread. a d. QUESTION 10 the equilibrium price decreases, and the equilibrium quantity increases the equilibrium price increases, and the effect of quantity is ambiguous the equilibrium price increases, and the equilibrium quantity increases the equilibrium price decreases, and the equilibrium quantity decreases If the demand of soccer balls increases, then a. b. C. d. O a O b O O O O