Consider a nation in which you could choose to live in one of two places: 1) By the sea 2) Inside the mainland (away from the sea) Let's say that in this economy, people really start preferring being near the sea, more than before. In the market for seaside properties, we'd expect to see _____________; in the market for mainland properties, we'd expect to see _________________. demand fall; quantity demanded rise demand fall; demand rise demand rise; demand fall demand rise; quantity demanded fall

Consider a nation in which you could choose to live in one of two places: 1) By the sea 2) Inside the mainland (away from the sea) Let's say that in this economy, people really start preferring being near the sea, more than before. In the market for seaside properties, we'd expect to see _; in the market for mainland properties, we'd expect to see _____. demand fall; quantity demanded rise demand fall; demand rise demand rise; demand fall demand rise; quantity demanded fall

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 5SCQ: How can there be any economic gains for a country from both importing and exporting the same good,...

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Course: Macroeconomics Suppose that the USA can make 15,000,000 cars or 20,000,000 bottles of wine with one year's worth of labor. France can make 10,000,000 cars or 18,000,000 bottles of wine with one year's worth of labor. From these numbers, we can conclude: Which country has the absolute advantage in producing cars? Which country has the absolute advantage in producing wine? Which country has the comparative advantage in producing cars? Which country has the comparative advantage in producing wine? (Show opportunity cost calculations.)
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Typed answer.
Van and Amy are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. ______ has an absolute advantage in the production of corn, andVan has an absolute advantage in the production of rye. _____ opportunity cost of producing 1 bushel of rye is ______ bushels of corn, whereas Amy's opportunity cost of producing 1 bushel of rye is_____ bushels of corn. Because Van has a______ opportunity cost of producing rye than Amy____ has a comparative advantage in the production of rye, and_____ has a comparative advantage in the production of corn.
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