Complete the following table by determining the opportunity cost of a car and of a ton of grain for both the United States and Japan.Opportunity Cost of1 Car1 Ton of Grain(In terms of tons of grain given up)(In terms of cars given up)United StatesJapanhas an absolute advantageGiven this information,has an absolute advantage in producing cars, andin producing grain.has a comparative advantage inAlso,has a comparative advantage in producing cars, andproducing grain.Assume that without trade, half of each country's workers produce cars and half produce grain.Complete the following table with the quantities of cars produced and consumed in each country if there is no trade.Cars Produced and ConsumedTons of Grain Produced and Consumed(Millions)(Millions)United StatesJapanTrue or False: Both countries would be better off if they produced the good in which they have a comparative advantage and then traded 200 milliontons of grain for 100 million cars. An American worker can produce either 5 cars or 8 tons of grain a year. A Japanese worker can produce either 4 cars or 9 tons of grain a year. To keepthings simple, assume that each country has 100 million workers.Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan.Workers Needed to Make1 Car1 Ton of GrainUnited States1/51/8Japan1/41/9

Answered: Image /qna-images/answer/4fef2321-67c6-4d91-9411-a234d181e315.jpg

Complete the following table by determining the opportunity cost of a car and of a ton of grain for both the United States and Japan. Opportunity Cost of 1 Car 1 Ton of Grain (In terms of tons of grain given up) (In terms of cars given up) United States Japan has an absolute advantage Given this information, has an absolute advantage in producing cars, and in producing grain. has a comparative advantage in Also, has a comparative advantage in producing cars, and producing grain.

Complete the following table by determining the opportunity cost of a car and of a ton of grain for both the United States and Japan. Opportunity Cost of 1 Car 1 Ton of Grain (In terms of tons of grain given up) (In terms of cars given up) United States Japan has an absolute advantage Given this information, has an absolute advantage in producing cars, and in producing grain. has a comparative advantage in Also, has a comparative advantage in producing cars, and producing grain.

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 4SCQ: In Germany it takes three workers to make one television and four workers to make one video camera....

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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?
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
.Brazil can produce 100 pounds of beef or 10 autos; in contrast the United States can produce 40pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has theabsolute advantage in producing autos? What is the opportunity cost of producing one pound of beef inBrazil? What is the opportunity cost of producing one pound of beef in the United States?
Argentina can produce 150 pounds of beef or 20 cars; in contrast the United States can produce 90 pounds of beef or 80 cars. Which country has the absolute advantage in producing beef? O Both countries have an absolute advantage. O United States O Argentina O Neither country has an absolute advantage.
lee and Tre produce two goods in an 8-hour day. lee can produce 10 capital or 55 consumables and Tre can produce 75 capital and 60 consumables. Who has the absolute advantage I the production of consumables? Who has the absolute advantage in the production of capital? Who has a comparative advantage in the production of capital? Who has a comparative advantage in the production of consumables? What is the opportunity cost for capital?
In one month, Manal can knit 2 sweaters or 4 scarves. In one month, Tamara can knit 1 sweater or 3 scarves. Given this information, which of the following statements is TRUE? O Manal has a comparative advantage in knitting scarves but not in knitting sweaters O Manal has a comparative advantage in knitting neither sweaters nor scarves O Manal has a comparative advantage in knitting both sweaters and scarves O Manal has a comparative advantage in knitting sweaters but not in knitting scarves
Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.
Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producingautos?WhatistheopportunitycostofproducingonepoundofbeefinBrazil?Whatistheopportunitycost of producing one pound of beef in the United States?
In theory of comparative advantage, which statement is correct O a a country should produce all product in which it is efficient O b. a country should produce all goods to cater its domestic demand Oo a country should only produce those goods in which it is more efficient than other goods Kd a country should produce all products it can export
Estonia Finland One Cell Phone 40 hours 15 hours Lumber (per board foot) 8 hours 4 hours Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. Refer to Table 2-5. Does either Estonia or Finland have a comparative advantage and if so, in what product? O Both countries have the comparative advantage in both lumber and cellphones. O Estonia has an comparative advantage in lumber while Finland has the comparative advantage in cellphones. O Finland has an comparative advantage in lumber while Estonia has the comparative advantage in cellphones. O cannot be determined.