Consider two individuals, Tanek and Kalene each of whom knits sweaters and makes hotdogs, respectively. The gains from trade between Tanek and Kalene are most obvious in which of the following cases?
Q: The four people listed below are the only workers In an economy that works 10 hours per day and only…
A: Production possibility frontier shows various combinations of amounts of two goods that the country…
Q: The following graph shows the same PPF for Yosemite as before, as well as its initial consumption at…
A: Production possibility frontier shows different combination of two good or services that can be…
Q: Suppose that Candonia and Lamponia agree to trade. Each country focuses its resources on producing…
A: Opportunity cost shows the cost of producing one good in terms of other. Opportunity cost shows the…
Q: Elliot and Jordy find themselves on a deserted island. The only two activities available are fishing…
A: Comparative advantage is an individual's ability to produce a particular good or service at lower…
Q: Suppose there exist two imaginary countries, Denali and Congaree. Their labor forces are each…
A: Opportunity Cost refers to the value of a consumer's foregone activity such as the consumption of a…
Q: when a country has a comparative advantage in the production of a good, it means that it can produce…
A: If both countries have an absolute advantage, then also trade takes place due to the comparative…
Q: Andreas can knit 1 scarves per hour and 4 hats per hour. Katya can knit 9 scarves per hour and 2…
A: Absolute cost advantage: - it is a principle of international trade given by Adam Smith which shows…
Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: A country should specialise in a particular good in which it has a competitive advantage.
Q: Suppose Zambia is open to free trade in the world market for oranges. Because of Zambia's small…
A: Consumers surplus is the difference between the highest price a consumer is willing to pay and the…
Q: Suppose that Maldonia and Desonia agree to trade. Each country focuses its resources on producing…
A: Production possibility frontier shows different combination of two good or services that can be…
Q: United States Hamburgers (in tons) Mexico Hamburgers (in tons) Tacos (in tons) 180 120 60 Tacos (in…
A: Comparative advantage is an economy's ability to produce a particular good or service at a lower…
Q: Gains from trade Consider two neighboring island countries called Bellissima and Felicidad. They…
A: Bellissima's opportunity cost of producing 1 pair of jeans = 16/8 =2 bushels of corns Felicidad's…
Q: Country A can produce one Outfit in 6 hours and one unit of Corn in 2 hour. Country B can produce…
A: The ability of an economy to produce a specific good or service at a lower opportunity cost than its…
Q: Suppose the market price for solar panels in the U.S. will be $500 per panel in the absence of any…
A: a) In the US, market price of a solar panel without any free trade is $ 500 per panel and the market…
Q: gain from trade
A:
Q: Suppose that Glacier and Denali agree to trade. Each country focuses its resources on producing only…
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: List any three non-economic rationale of intervention of trade ? Which non-economic rationale will…
A: a. Maintenance of fundamental ventures (particularly safeguard): A significant thought behind…
Q: Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two…
A: US can produce maximum 81 tons of tacos or maximum 90 tons of hamburgers. Mexico can produce maximum…
Q: I am eight hour day Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight…
A: Given: Andy can produce either 24 loaves of bread or 8 kilograms of butter. Rolfe can produce either…
Q: Suppose there are two bakers in town: Sarah and Amy. Sarah can bake 4 loaves of bread or 8 pies in…
A: In microeconomic theory, opportunity cost is the loss of the benefit that could have been enjoyed if…
Q: Suppose that research finds a link between high fructose corn syrup (HFCS) and obesity, which then…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: Canadad Corn Corn LL 60 60 60 20 Peanuts Peanuts he United States and Canada have the production…
A: United States Canada Corn 60 60 Peanuts 60 20 Now, United States Canada Opportunity…
Q: Attempts 0.5 3. Tariffs Suppose Bangladesh is open to free trade in the world market for oranges.…
A: Consumer surplus is the area above the price line and below the demand curve. Producer surplus is…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Let us first calculate the opportunity cost (OC) in the production of both goods for both countries…
Q: In an international market, we say that a country will be an (Blank) of a good if it has the (Blank)…
A: International trade refers to the process of exchange of goods, services, and capital across the…
Q: Suppose that Yosemite and Congaree agree to trade. Each country focuses its resources on producing…
A: PPF represents the maximum amount of two products and services that an economy can generate given…
Q: coffee , while Lamponia has a comparative advantage in the Candonia has a comparative advantage in…
A: The PPF is also referred to as the production possibility curve (PPC). It is a key economic concept…
Q: Suppose the fictional country of everglass produces only two goods
A: In economics, a Production Possibility Frontier (PPF) represents the maximum combinations of two…
Q: Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to…
A: Absolute advantage occurs when a country can produce more of a good with the given resources. A…
Q: Freedonia Lamponia 16 16 14 14 12 12 PPF 10 10 8 8 PPF 4 2 2 + 4 8 10 12 14 16 2 4 8 10 12 14 16…
A: Comparative Advantage of a nation in producing certain goods is said to be the relative ability of…
Q: Suppose that Maldonia and Lamponia agree to trade. Each country focuses its resources on producing…
A: Trade is an activity where the exchange of goods and services takes place between the seller and the…
Q: sugar Candonia has a comparative advantage in the production of while Lamponia has a comparative…
A: A production possibility curve depicts the combination of two goods that can be produced by using…
Q: Trade makes both consumers and producers better off. Explain this in detail with all appropriate…
A: Trade refers to the exchange of goods, services, or assets between individuals, businesses, or…
Q: The country of Zanabar produces computers and produces them in a large quantity while the country of…
A: Efficiency: It means optimization of resources for serving the best each person in that economic…
Q: onsider an economy with two producers, Sidney and Connor. Each allocates 8 hours per day between the…
A: Given information: Total labor hours =8 In 8 hours, Sidney can produce 80 kg of chocolate or 16 kg…
Q: Consider the combined production possibility frontier for a two good (fish and apples), two-person…
A: A "production possibility frontier" (PPF) is a graphical representation of the various combinations…
Q: The United States and Canada have the production possibilities curves shown above. It is determined…
A: The formula is:The opportunity cost of production of a good = maximum production of other good /…
Q: Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each…
A: Autarky refers to a situation where a country or economy is self-sufficient and does not engage in…
Q: do fast i will 5 upvotes.
A: The objective of the question is to understand the impact of a tariff on the market for oranges in…
Q: A small island nation of Gondwana can produce either 40 Apple iPhones (Apple for short) or 80…
A: When a country is able to produce a certain good or to provide a service at a lower opportunity cost…
Q: Nation 1: Mexico Good 1: televisions Nations Given: Mexico and Canada produce only two goods. They…
A: Comparative advantage was propounded by David Ricardo which describes the skill set of an economy to…
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- Suppose that towns collect resources from their surroundings. Then, through trade, they attempt to obtain other desirable items. Mortarville, an urban town that specializes in brick and ore, wants wood to build roads so that it can expand and connect to other major cities. Mortarville has a willingness to pay $50 for wood, since wood is hard for them to obtain Mayflair also needs wood to build grain silos for their wheat harvests. Mayflair is willing to pay $45 for wood. Timber, the only foresting company, sets the price of wood at $60. The change in total surplus that arises due to trades between Timber and the towns is John finds a set of wood in his garage which he is willing to sell for no less than $35. John chooses to sell the set to Mayflair for $40 instead of to Mortarville for $45. As a result of John's transaction with Mayflair total surplus increased, but the market is inefficient total surplus decreased, and the market is inefficient total surplus increased, and the market…Isabella and Antonio are auto mechanics. Isabella takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. Antonio takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Isabella is The opportunity cost of replacing a set of brakes for Antonio is has a comparative advantage in brake replacement. has a comparative advantage in clutch replacement. has an absolute advantage in brake replacement. has an absolute advantage in clutch replacement. Antonio Isabella Antonio Antonio(e) Assume that Home and Foreign open to trade with each other. Explain how is the pattern of trade (which good will each country export and import) determined
- When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Yosemite and Congares. Both countries produce corn and lentils, each initially (ie, before specialization and trade) producing 6 million pounds of corn and 3 million pounds of lentils, as indicated by the grey stars marked with the letter A. LENTILS (MEns of pounds 0 0 194 2 Yout 4 10 CORN (Mof pounds) 14 16 LENTILS (Mons of pounds 0 2 Yosemite has a comparative advantage in the production of production of comparative advantage. After specialization, the two countries can produce a total of comm. Conger L 10 12 COHN (Mof pounds) 14 16 (?) conn while Congaree has a comparative advantage in the -Suppose that Yosemite and Congaree specialize in the production…When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Candonia and Sylvania. Both countries produce lemons and coffee, each initially (i.e., before specialization and trade) producing 24 million pounds of lemons and 12 million pounds of coffee, as indicated by the grey stars marked with the letter A. Candonia has a comparative advantage in the production of , while Sylvania has a comparative advantage in the production of . Suppose that Candonia and Sylvania specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of lemons and million pounds of coffee. Suppose that Candonia and…Tarriffs: Suppose the market price for solar panels in the U.S. will be $500 per panel in the absence of any trade in solar panels. The price of solar panels in the world market is $295 per panel. a) What will be the price of solar panels in the U.S. if the U.S. has free trade in solar panels? Diagrammatically show the gains from trade in solar panels. (Change in welfare as a result of free trade in solar panels compared to the situation of no trade. Show how the different components of welfare such as consumer surplus and producer surplus change.) b) Now suppose the Trump administration imposes a quota. That is, it says that it will allow the import of only 10 million panels a year (With free trade the imports would have been more than 10 million). Will the price of solar panels rise or fall in the US? Who will gain from the quota? Who will lose? Diagrammatically show the welfare impact of the quota compared to the free trade situation. (Again show the change in welfare in…
- Suppose the fictional country of Everglades produces only two goods: sorghum and telephoto lenses. The following graph plots Everglades's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. 80 PPF 60 K E + 40 20 A B C D 100 TELEPHOTO LENSES (Millions) Point Inefficient E F 0 0 ++ Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. 0 C r 20 0 60 SORGHUM (Millions of bushels) Efficient 00 0 40 0 X8 C D Unattainable 0 0 00 80 100Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below. United States Mexico Hamburgers (in tons) Tacos (in tons) Hamburgers (in tons) Tacos (in tons) 162 135 90 108 18 90 180 54 36 45 270 54 Which country has an absolute advantage in producing tacos? The United States Which country has a comparative advantage in producing tacos? Mexico Suppose the United States is currently producing 180 tons of hamburgers and 54 tons of tacos and Mexico is currently producing 36 tons of hamburgers and 45 tons of tacos. If the United States and Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of additional ton(s) of hamburgers can be produced for the two countries combined (enter a numeric response using an integer)Many trading partners trade the same goods and services with one another. The U.S. exports automobiles to Europe and Europe exports automobiles to the United States. In fact, that's true for food, appliances, computers and many other goods. Does intra-industry trade contradict the theory of comparative advantage? Why or why not?
- When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Yosemite and Rainier. Both countries produce com and lentils, each Initially (l.e., before specialization and trade) producing 30 million pounds of corn and 15 million pounds of lentils, as indicated by the grey stars marked with the letter A. LENTILS (Milions of pounds) 80 70 60 50 40 30 20 10 0 80 70 60 80 50 70 Note: Dashed drop lines will automatically extend to both axes. 40 60 30 50 20 40 10 30 PPF 0 20 10 0 0 0 Yosemite has a comparative advantage in the production of while Rainler has a comparative advantage in the production of . Suppose that Yosemite and Rainier specialize in the production of the goods in which each has a comparative advantage.…Suppose there exist two imaginary countries, Everglades and Denali. Their labor forces are each capable of supplying four million hours per day that can be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can be produced by one hour of labor. Country Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) Everglades 4 16 Denali 6 12 Suppose that initially Denali uses 1 million hours of labor per day to produce shorts and 3 million hours per day to produce almonds, while Everglades uses 3 million hours of labor per day to produce shorts and 1 million hours per day to produce almonds. As a result, Everglades produces 12 million pairs of shorts and 16 million pounds of almonds, and Denali produces 6 million pairs of shorts and 36 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two…In the Pure Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. The government imposes a tariff on the imports of W then owners of A benefit. Why is this so ?
