A German truck company is considering relocating its production from Germany to either Romania or Poland. Assume that labor is the only factor of production and that wages in Poland equal C20 per hour while wages in Romania are €10 per hour. Production costs would be lower in Romania as compared to Poland if Your answer: O Polish labor productivity in trucks equaled 20 units per hour and Romania's 10 units per hour. O Polish labor productivity in trucks equaled 20 units per hour and Romania's 20 units per hour. O Poland had absolute productivity advantage in the overall manufacturing industry over Romania. O Polish labor productivity in trucks equaled 50 units per hour and Romania's 20 units per hour. Clear answer

A German truck company is considering relocating its production from Germany to either Romania or Poland. Assume that labor is the only factor of production and that wages in Poland equal C20 per hour while wages in Romania are €10 per hour. Production costs would be lower in Romania as compared to Poland if Your answer: O Polish labor productivity in trucks equaled 20 units per hour and Romania's 10 units per hour. O Polish labor productivity in trucks equaled 20 units per hour and Romania's 20 units per hour. O Poland had absolute productivity advantage in the overall manufacturing industry over Romania. O Polish labor productivity in trucks equaled 50 units per hour and Romania's 20 units per hour. Clear answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please examine the data describing unit labor requirements and labor productivity for two nations. These nations are only able to produce one of two items - ships and planes. Given this information, what is the value of the cell labeled B? Unit Labor Requirements Hours of labor required to produce one unit Inland Ships Planes 2 Harborton 4 1 0.5 Labor Productivity How many units can be produced in one hour Inland Harborton Ships A 0.25 Planes 1.0 B 2 units 1 unit 0.5 units O units
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Unit labor costs in Germany approach $30 per hour, whereas in Britain unit labor costs are only $20 per hour. Why would such a large difference persist between two members of the EU free trade area?
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If a country can produce more of a good than other countries with a given amount of resources, we say that country has the| [ Select ] and if a country has less to lose in producing a good than other countries do, we say that country has [ Select ]
France produces agricultural products and manufactured products, using both labour and capital. When France engages in free trade, it starts exporting manufactured products, which is capital intensive. In the long run, which one of the following scenarios is incorrect? O France remains capital abundant. O Allocation of French capital changes compared to autarky. O Real rental in the manufacturing industry increases more than the real rental in the agricultural industry. O Real wage in France falls.
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The United States and Canada have two factors of production, capital and labor, with which they produce two goods, TV's and Wheat. Technology is the same in the two countries. TV's are Capital-intensive; and the US is capital-abundant. Analyze the effects on the terms of trade and on the two countries' welfare of the following: a) Capital stock increase in the US. b) Labor supply increase in the US. c) Capital stock increase in Canada. d) Labor supply increase in Canada.