Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula = 4 cans tuna fish Tunata: 1 can baby formula = 6 cans tuna fish a. In what product should each nation specialize? Canswicki should produce (Click to select) V and Tunata should produce (Click to select) ♥ b. Would the following terms of trade be acceptable to both nations? i. 1 can baby formula = 3 cans tuna fish: (Click to select) ♥ ii. 1 can baby formula = 7 cans tuna fish: (Click to select) ♥ iii. 1 can baby formula = 4.5 cans tuna fish: [(Click to select) ♥

Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula = 4 cans tuna fish Tunata: 1 can baby formula = 6 cans tuna fish a. In what product should each nation specialize? Canswicki should produce (Click to select) V and Tunata should produce (Click to select) ♥ b. Would the following terms of trade be acceptable to both nations? i. 1 can baby formula = 3 cans tuna fish: (Click to select) ♥ ii. 1 can baby formula = 7 cans tuna fish: (Click to select) ♥ iii. 1 can baby formula = 4.5 cans tuna fish: [(Click to select) ♥

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter19: International Trade

Section: Chapter Questions

Problem 3QFR

See similar textbooks

Similar questions

If trade increases world GDP by 1 per year, what is the global impact of this increase over 10 years? How does this increase compare to the annual GDP of a country like Sri Lanka? Discuss. Hint To answer this question, here are steps you may want to consider. Go to the World Development Indicators (online) published by the World Bank. Find the current level of World GDP in constant international dollars. Also, find the GDP of Sri Lanka in constant international dollars. Once you have these two numbers, compute the amount the additional increase in global incomes due to trade and compare that number to Sri Lankas GDP.
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula = 5 cans tuna fish Tunata: 1 can baby formula = 7 cans tuna fish a. In what product should each nation specialize? Canswicki should produce baby formula and Tunata should produce tuna fish b. Would the following terms of trade be acceptable to both nations? i. 1 can baby formula = 4 cans tuna fish: (Click to select) v iI. 1 can baby formula = 8 cans tuna fish: (Click to select) v es iII. 1 can baby formula = 5.5 cans tuna fish: (Click to select)
Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula = 3 cans tuna fish Tunata: 1 can baby formula = 5 cans tuna fish a. In what product should each nation specialize? Canswicki should produce [(Click to select), and Tunata should produce [(Click to select) ♥ b. Would the following terms of trade be acceptable to both nations? i. 1 can baby formula = 2 cans tuna fish: (Click to select) ii. 1 can baby formula = 3.5 cans tuna fish: (Click to select) iii. 1 can baby formula = 6 cans tuna fish: (Click to select)
Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula = 2 cans tuna fish Tunata: 1 can baby formula = 4 cans tuna fish a. In what product should each nation specialize? Canswicki should produce (Click to select) ♥ and Tunata should produce | (Click to select) ♥ b. Would the following terms of trade be acceptable to both nations? i. 1 can baby formula = 2.5 cans tuna fish: (Click to select) ii. 1 can baby formula = 1 can tuna fish: (Click to select) v iii. 1 can baby formula = 5 cans tuna fish: | (Click to select) v
Assume that the comparative-cost ratios of two products— baby formula and tuna fish—are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula ≡ 2 cans tuna fish Tunata: 1 can baby formula ≡ 4 cans tuna fishIn what product should each nation specialize? Which of the following terms of trade would be acceptable to both nations: (a) 1 can baby formula ≡ 2 1 2 cans tuna fish; (b) 1 can baby formula ≡ 1 can tuna fish; (c) 1 can baby formula ≡ 5 cans tuna fish?
Assume that the comparative-cost ratios of two products—baby formula and tuna fish—are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula ≡ 5 cans tuna fish Tunata: 1 can baby formula ≡ 7 cans tuna fish a. In what product should each nation specialize? Canswicki should produce _____- , and Tunata should produce _____ b. Would the following terms of trade be acceptable to both nations? i. 1 can baby formula ≡ 4 cans tuna fish: yes or no ii. 1 can baby formula ≡ 8 cans tuna fish: yes or no iii. 1 can baby formula ≡ 5.5 cans tuna fish: yes or no
Draw a domestic supply and demand diagram for a product in which the United States does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity? On your diagram show a protective tariff that eliminates approximately one-half of the assumed imports. What are the price-quantity effects of this tariff on ( a) domestic consumers, (b) domestic producers, and (c) foreign exporters? How would the effects of a quota that creates the same amount of imports differ?
True or False: If Country B has an absolute advantage over Country A in producing bicycles, it will also have a comparative advantage over Country A in producing bicycles
Comparative advantage and gains from trade Consider two neighboring island countries called Bellissima and Felicidad. They each have 4 million labor hours available per month that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Corn Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) Bellissima 8 16 Felicidad 5 20 Initially, suppose Bellissima uses 1 million hours of labor per month to produce corn and 3 million hours per month to produce jeans, while Felicidad uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Bellissima produces 8 million bushels of corn and 48 million pairs of jeans, and Felicidad produces 15 million bushels of corn and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so in the absence of trade between…
Suppose that a country has a demand function for a laptop given by P = 30 – Qa and supply 1 function given by P = where P is the market price of laptop and Qd and Q, are quantity of laptop demanded and supplied in a country, respectively. 18. If this country engages in international trade and that world price of laptop is Pw = 14, will this country export or import a laptop after international trade? How many units?
If a country does not have an absolute advantage in the production of at least one commodity, then it cannot gain from free trade Select one: O True O False