Assume that the global economy consists of only two countries called F and G. It is said that there are only two goods, X and Y, at the same time. Below are the different combinations the two countries can each produce. Assuming that the cost of production is constant, what is the pre-trade opportunity cost of X 1 unit in Y? 1. (1) Country F: X 10 units or Y 20 units. (2) Country G: X 10 units or Y 10 units. 2. (1) Country F: X 2 units or Y 4 units. (2) Country G: X 3 units or Y 6 units. 3. (1) Country F: X 20 units or Y 5 units. (2) Country G: X 18 units or Y 2 units. 4. Among the cases presented in (1)-(3) above, which case satisfies the following conditions? Choose all State F exports good Y and imports good X (In which situations country F will export good Y and import good X.) 5. Which of the cases presented in (1)-(3) above satisfies the following conditions? Choose all Situation where trade does not occur (In which situations no trade will take place.)
Assume that the global economy consists of only two countries called F and G. It is said that there are only two goods, X and Y, at the same time. Below are the different combinations the two countries can each produce. Assuming that the cost of production is constant, what is the pre-trade opportunity cost of X 1 unit in Y? 1. (1) Country F: X 10 units or Y 20 units. (2) Country G: X 10 units or Y 10 units. 2. (1) Country F: X 2 units or Y 4 units. (2) Country G: X 3 units or Y 6 units. 3. (1) Country F: X 20 units or Y 5 units. (2) Country G: X 18 units or Y 2 units. 4. Among the cases presented in (1)-(3) above, which case satisfies the following conditions? Choose all State F exports good Y and imports good X (In which situations country F will export good Y and import good X.) 5. Which of the cases presented in (1)-(3) above satisfies the following conditions? Choose all Situation where trade does not occur (In which situations no trade will take place.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume that the global economy consists of only two countries called F and G. It is said that there are only two goods, X and Y, at the same time. Below are the different combinations the two countries can each produce. Assuming that the cost of production is constant, what is the pre-trade opportunity cost of X 1 unit in Y?
1. (1) Country F: X 10 units or Y 20 units.
(2) Country G: X 10 units or Y 10 units.
2. (1) Country F: X 2 units or Y 4 units.
(2) Country G: X 3 units or Y 6 units.
3. (1) Country F: X 20 units or Y 5 units.
(2) Country G: X 18 units or Y 2 units.
4. Among the cases presented in (1)-(3) above, which case satisfies the following conditions? Choose all
State F exports good Y and imports good X
(In which situations country F will export good Y and import good X.)
5. Which of the cases presented in (1)-(3) above satisfies the following conditions? Choose all
Situation where trade does not occur
(In which situations no trade will take place.)
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