Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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![A market that is operating efficiently
O maximizes producer surplus.
maximizes total surplus.
maximizes consumer surplus.
maximizes profit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99652214-81b8-42bc-94d3-33a40a2ac31e%2F532a4712-a7a1-4738-84d4-be64057a5348%2Fqibc5dc_processed.png&w=3840&q=75)
Transcribed Image Text:A market that is operating efficiently
O maximizes producer surplus.
maximizes total surplus.
maximizes consumer surplus.
maximizes profit.
![Suppose Country A can create 200 tons of capital-intensive goods or 200 tons of labor-intensive goods in one day. Suppose Country B
can produce 80 tons of capital-intensive goods or 160 tons of labor-intensive goods in one day.
Country A v has the absolute advantage in the production of capital-intensive goods.
has the absolute advantage in
the production of labor-intensive goods.
Country A V has the comparative advantage in the production of capital-intensive goods.
Country B V
has the comparative
advantage in the production of labor-intensive goods.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99652214-81b8-42bc-94d3-33a40a2ac31e%2F532a4712-a7a1-4738-84d4-be64057a5348%2Fjrddxy_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose Country A can create 200 tons of capital-intensive goods or 200 tons of labor-intensive goods in one day. Suppose Country B
can produce 80 tons of capital-intensive goods or 160 tons of labor-intensive goods in one day.
Country A v has the absolute advantage in the production of capital-intensive goods.
has the absolute advantage in
the production of labor-intensive goods.
Country A V has the comparative advantage in the production of capital-intensive goods.
Country B V
has the comparative
advantage in the production of labor-intensive goods.
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