Assume the table below shows the quantities of automobiles and computers that a worker can produce in a day in the United States and Japan. United States Japan Automobiles 2 4 Computers 32 4 Suppose each country has 2,000 workers and consumes the following (per day) without trade from allocating 1,000 workers to automobile production and 1,000 workers to computer production: United States Japan Automobiles 2,000 4,000 Computers 32,000 4,000 If both countries specialize completely by producing only that for which they have a comparative advantage and then trade 2,000 automobiles for 16,000 computers, what will each country's consumption of automobiles and computers be? To answer this question, fill in the table below with the amounts of automobiles and computers the United States and Japan will consume with specialization and trade. (Enter your responses as whole numbers.) United States Japan Automobiles Computers

Assume the table below shows the quantities of automobiles and computers that a worker can produce in a day in the United States and Japan. United States Japan Automobiles 2 4 Computers 32 4 Suppose each country has 2,000 workers and consumes the following (per day) without trade from allocating 1,000 workers to automobile production and 1,000 workers to computer production: United States Japan Automobiles 2,000 4,000 Computers 32,000 4,000 If both countries specialize completely by producing only that for which they have a comparative advantage and then trade 2,000 automobiles for 16,000 computers, what will each country's consumption of automobiles and computers be? To answer this question, fill in the table below with the amounts of automobiles and computers the United States and Japan will consume with specialization and trade. (Enter your responses as whole numbers.) United States Japan Automobiles Computers

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 29P: France and Tunisia both have Mediterranean climates that are excellent for producing/harvesting...

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Assume the table below shows the quantities of automobiles and computers that a worker can produce in a day in the United States and Japan. Automobiles Computers United States Japan 4 2 28 Suppose each country has 2,000 workers and consumes the following (per day) without trade from allocating 1,000 workers to automobile production and 1,000 workers to computer production: United States Japan Automobiles 4,000 2,000 Computers 4,000 28,000 If both countries specialize completely by producing only that for which they have a comparative advantage and then trade 2,000 automobiles for 14,000 computers, what will each country's consumption of automobiles and computers be? To answer this question, fill in the table below with the amounts of automobiles and computers the United States and Japan will consume with specialization and trade. (Enter your responses as whole numbers.) Automobiles Computers United States Japan
Suppose there are two countries for analyses, the United States and Indonesia. Assume that 2000 man hours are available in the United States and 36000 in Indonesia. The following table provides information on how many man-hours are needed to produce one unit of the same goods. Indonesia United States Cloth 50 3 Machines 100 5 2.4 With the aid of a graph, explain why both countries benefit from trade when prices are within the range of 1.666675 cloths per machine and 2 cloths per machine.
The table below shows the production of oil and lumber of ONE worker in China and India: rice (in pounds) shirts (unit) CHINA 400 200 INDIA 330 110 a) BEFORE trade (or with no trade), each country has 100 workers, and they allocate the worker for the production of the goods in the following way: China allocates 35 workers in the production of rice, and 65 workers in the production of shirts; India allocates 50 workers in the production of rice and 50 workers in the production of shirts. Find the maximum production and consumption of both goods for each country! b) If the countries decide to engage in trade (WITH TRADE), they will specialize in the production of the good in which they have comparative advantage. In which good should China specialize? How about India? JUSTIFY! (To answer this question you must calculate the opportunity cost of each good for both countries and then find the country's comparative advantage). What is the WITH TRADE production of the countries? c) If the…
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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 jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Country Jeans Corn (Pairs per hour of labor) (Bushels per hour of labor) Bellissima 8 16 Felicidad 5 20 Initially, suppose Bellissima uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce corn, while Felicidad uses 3 million hours of labor per month to produce jeans and 1 million hours per month to produce corn. Consequently, Bellissima produces 8 million pairs of jeans and 48 million bushels of corn, and Felicidad produces 15 million pairs of jeans and 20 million bushels of corn. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each…
Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 400 bushels of corn and 100 bushels of oats, while Oatland will produce and consume 20 bushels of corn and 800 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by
The table shows the units of output a worker can produce per hour in Germany and Korea for two different goods: spaetzle and kimchi. Use this table to answer the question. One worker in Germany One worker in Korea Pounds of spaetzle per hour Which of the statements is true? 2 Pounds of kimchi per hour Korea has a comparative advantage in the production of spaetzle, while Germany has a comparative advantage in the production of kimchi. Korea has a comparative advantage in the production of both goods. Germany has a comparative advantage in the production of spaetzle, while Korea has a comparative advantage in the production of kimchi. Germany has a comparative advantage in the production of both goods.
Suppose Japan and Great Britain produce only cell phones and digital music players. Assume that each country uses only labor to produce each good, and that the cell phones and digital music players made in Japan and Great Britain are exactly alike. The table below shows how much each country can produce of each good with one hour of labor: Output per Hour of Labor Cell Phones Japan Great Britain 23 2 Digital Music Players 16 7 Suppose that Japan and Great Britain do not trade with each other. Each has 100 hours of labor with which to produce cell phones and digital music players, and the countries are currently producing amounts of each good shown in the table below: Japan Great Britain Consumption with 100 Hours of Labor Cell Phones 2,070 160 Digital Music Players 160 140 Assume now that each country specializes in producing that good in which it has a comparative advantage. Further, assume for simplicity that one cell phone can be traded for one digital music player. If Japan trades…
The graph on the right shows Tanzania's production possibilities frontier for cashew nuts and mangoes. Assume that the output per hour of work is 8 bushels of cashew nuts or 2 bushels of mangoes, and that Tanzania has 1,000 hours of labor. Without trade, Tanzania evenly splits its labor hours between cashews and mangoes and produces and consumes at point A. Suppose Tanzania opens trade with Kenya, and Kenya's output per hour of work is 1 bushel of cashew nuts or 1 bushel of mangoes. Having the comparative advantage, Tanzania completely specializes in cashew nuts. Locate the point of production for Tanzania. bushels of mangoes and bushels of cashew The point of production for Tanzania includes nuts. (Enter your responses as whole numbers.) Suppose Tanzania keeps 5,000 bushels of cashew nuts and exports the remaining 3,000 bushels. The terms of trade are 1 bushel of mangoes for 2 bushels of cashew nuts. Locate the point that shows the amount of cashew nuts and mangoes that Tanzania…
Briefly and intuitively explain why the number of varieties available to consumers after trade opens up between two countries will generally be less than the sum of varieties available in the countries before trade.
David Ricardo, the British political economist, used the example of two commodities—wine and cloth—produced by England and Portugal to explain trade. The following table shows the number of labor hours it would take England and Portugal to produce one unit each of wine and cloth: (see table attatched) Portugal can produce both wine and cloth using fewer labor hours than England uses. A group of mercantilists (who believe that nations build their wealth by exporting more than they import) suggest that Portugal has nothing to gain from trading with England. Would you agree? Explain your answer.