Q: When a country specializes in the production of a good, this means that it can produce this good a a…
A: Production possiblity curve depicts the combination of two goods that can be produced by using given…
Q: Consider the following scenario. Xavier and Yannis can switch between producing baskets and…
A: It is given in the question that: Baskets birdhouses Xavier 3units/day 12…
Q: In the no specialization-no trade case, country X produces and consumes 60 units of good A and 10…
A: What rate the commodities will be exchanged in the international trade it is given by classical…
Q: Suppose that there are two countries (A and B) and two goods (a labor-intensive good X, textile, and…
A: There are two countries (A and B) and two goods A labor-intensive good X, textile, and a…
Q: Consider the Production Possibility Frontiers of two countries, Australia and Brazil. Assume both…
A:
Q: The table below shows the maximum quantities of two goods that each country can produce. If the…
A: Given Wakanda can produce either 8 tons of Vibranium or 2 tons of gold whereas Zamunda can produce…
Q: An American worker can produce either 5 cars or 8 tons of grain a year. A Japanese worker can…
A: United States: Production of 5 cars requires 1 workers in one year Implies, 5 cars = 1 worker 1 car…
Q: The production possibilities frontiers in the figure to the right show how many bananas and coconuts…
A: Opportunity cost is the amount of one good that is given up in order to produce one more unit of…
Q: True or False. Both Countries would be better off if they produced the good in which they have a…
A: Given: Production per worker Car Grain (in tons) United state 4 8 Japan 4 5 The total…
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: Suppose that Portugal and Switzerland both produce jeans and stained glass. Portugal's opportunity…
A: Given information:There are two countries, i.e., Country P and Country SThey produce two goods,…
Q: Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies…
A: ‘Comparative advantage’ refers to the ability to produce a good at a lesser ‘opportunity cost’ than…
Q: Question 5 Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can…
A: Since you have posted multiple subparts, as per the guidelines we can solve only first 3 subparts.
Q: Suppose that Portugal and Switzerland both produce beer and stained glass. Portugal's opportunity…
A: The countries involve in trade. Trade is very beneficial for all countries. It improves the market.…
Q: The U.S. and Mexico both produce vehicles and tons of plastic, which are sold for the same price in…
A: The opportunity cost represents the potential benefits that one has to give up while choosing an…
Q: Q8
A: Country which has a comparative advantage in a product specialises in that product. It becomes an…
Q: Z and S.A are trading partners. Both produce metal ores (including lithium) and delivery trucks.…
A: A country has a Comparative advantage when the opportunity cost (OC) of producing a good or service…
Q: 32 28 Consumption After Trade 24 PPF 20 16 12 8 4 8 12 16 20 24 28 32 POTATOES (Millions of pounds)…
A: Freedonia has a comparative advantage in the production of tea while Sylvania has the comparative…
Q: Countries A and B are both producers of wine and sausages. The table below shows their respective…
A: Absolute advantage is where a country can produce more output as compared to the other country using…
Q: Write the utility of country A here and provide a detailed explanation below. and the utility of…
A: To determine the utility of each country when the agents can trade, we must first find the…
Q: (a) On two separate graphs sketch the initial PPF for the two countries with Food on the x-axis. (b)…
A: Given information: Peru can produce either 7,523 units of food or 17,853 units of fuel using 8000…
Q: Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year,…
A: Comparative advantages is international trade theory which refers that when one country has lower…
Q: After trade, Nicaragua will consume thousand pounds of chicken and thousand pounds of quinoa. After…
A: In the theory of trade, the ideas of ‘Absolute Advantage’ and ‘Comparative Advantage’ are very…
Q: part C and D needed only Consider the Production Possibility Frontiers of two countries,…
A: The act of purchasing, selling, or exchanging products or services between individuals, companies,…
Q: wine SERE54321 90 80 70 60 50 40 30 20 10 PPF Portugal CPF 0 0 10 20 30 40 50 60 cloth wine 90…
A: PPF stands for Production Possibility Frontier, which is a graphical representation showing the…
Q: Grapes 200 Grapes 200 California 50 France 25 Tomatoes Tomatoes 4 Refer to the figure shown, which…
A: The PPF is also referred to as the production possibility curve (PPC). It is a key economic concept…
Q: Show on the PPF how both Germany and France gain from trade. B) How many units of apples and…
A:
Q: Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or…
A: Here, it is given that Alpha can produce either 18 oranges or 9 apples, while Beta can produce 16…
Q: Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies…
A: Opportunity cost is the forgone profit that the producer would have gained, it the second best…
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: 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: The countries of Aptonville and Boonton each produce two goods: Ovens and Dishwashers. The table…
A: Comparative Advantage: A country have comparative advantage in producing a good implies that the…
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 a country is currently producing at a point on its production possibility frontier, and…
A: Production possibility curve -This is a curve which shows various combination of two goods a country…
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: A country produces two goods: coconuts and umbrellas. Their production possibilities frontier (PPF)…
A: "Production possibility frontier or PPF represents the different combinations of the two goods that…
Q: The PPC above shows production possibilities for a country that can produce a maximum of 50 chickens…
A: The given graph depicts the production possibility curve for a country that produces pigs and…
Q: Isabella and Antonio are auto mechanics. Isabella takes 8 hours to replace a clutch and 6 hours to…
A: The term O.C. describes the value of the next best alternative forgone when a decision is made. It…
Q: The countries of Sanaton and Microtania each produce two goods: Airplanes and Computers. The table…
A: Opportunity cost: When a country picks an option then it has to foregone other options. And the…
Q: What is one possible price of capital-intensive goods (in terms of labor-intensive goods) that would…
A: In country A, 1 ton of capital-intensive goods =200/200 = 1 ton of labor intensive good In…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Comparative advantage is the nation's specialization of goods in the international market. The…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Gains from Trade are defined as the output that is obtained by subtracting the consumption before…
Q: Assume that Germany has 1200 units of labor available and it can produce two goods: apples and…
A: The Theory of Comparative-Advantage states that the economy with the least opportunity cost in…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The following table shows how many tonnes of dairy products and beef products can be produced in Country 1 and Country 2 with one unit of equivalent resources. Country 1 Country 2 Dairy Products (tonnes) 15 15 Beef Products (tonnes) 5 25 ..... a. Which country has an absolute advantage in dairy products? In beef products? Explain. Whoever is able to produce absolute advantage of producing that product. advantage in dairy production. production. with the same amount of resources has the has the absolute has the absolute advantage in beef A *****Consider the following information: Country A's opportunity cost of producing vegetables is lower than Country B's. Country B's opportunity cost of producing electronics is lower than Country A's. Country A is absolutely better at producing both goods. If the two countries decide to specialize and trade then: O Each country will be able to produce and consume at a point outside their production possibilities frontier. O Each country will be able to consume at a point outside their production possibilities frontier. O Each country will be able to produce at a point outside their production possibilities frontier. O Each country's production possibilities frontier will shift outward. « Previous Next ASUS 17 6 8The following graphs show the production possibilities frontiers (PPFS) for Maldonia and Lamponia. Both countries produce lemons and tea, each initially (i.e., before specialization and trade) producing 12 million pounds of lemons and 6 million pounds of tea, as indicated by the grey stars marked with the letter A. TEA (Millions of pounds) 32 28 226 24 PPF 20 16 12 28 Maldonia 0 4 8 12 16 20 24 LEMONS (Millions of pounds) 28 32 22 ? TEA (Millions of pounds) 32 22 28 24 20 16 12 PPF Lamponia A 0 04 8 12 16 20 24 28 LEMONS (Millions of pounds) 32 ? Maldonia has a comparative advantage in the production of production of while Lamponia has a comparative advantage in the . Suppose that Maldonia and Lamponia specialize in the production of the goods in which each has a million pounds of comparative advantage. After specialization, the two countries can produce a total of Jemons million pounds of tea and
- Suppose that Spain and Switzerland both produce oil and cheese. Spain's opportunity cost of producing a pound of cheese is 4 barrels of oil while Switzerland's opportunity cost of producing a pound of cheese is 10 barrels of oil. By comparing the opportunity cost of producing cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and has a comparative advantage in the production of oil. Suppose that Spain and Switzerland consider trading cheese and oil with each other. Spain can gain from specialization and trade as long as it receives more than of oil for each pound of cheese it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than of cheese for each barrel of oil it exports to Spain. Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of oil) would allow both Switzerland and Spain to gain from…Below are hypothetical production possibilities tables for New Zealand and Spain. Each country can produce apples and plums. Referring to the tables, answer the following: Suppose the optimal product mixes before specialization and trade are alternative B in New Zealand and alternative S in Spain and the actual terms of trade are 1 plum for 2 apples. What will be the gains from specialization and trade?Suppose that a worker in Country A can produce either 6 units of corn or 2 units of wheat per year, and a worker in Country B can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Country A produces and consumes 30 units of corn and 10 units of wheat per year. Country B produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Country A sends 30 units of corn to Country B in exchange for 30 units of wheat. Country A will now be able to consume a maximum of Select one: a.30 units of corn and 30 units of wheat. b.40 units of corn and 20 units of wheat. c.40 units of corn and 30 units of wheat. d.10 units of corn and 40 units of wheat.
- 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 that France and Italy both produce wine and cheese. France's opportunity cost of producing a case of cheese is 5 barrels of wine, while Italy's opportunity cost of producing a case of cheese is 10 barrels of wine. By comparing the opportunity cost of producing cheese in the two countries, you can tell that comparative advantage in the production of cheese and has a comparative advantage in the production of wine. Suppose that France and Italy consider trading cheese and wine. France can gain from specialization and trade as long as it receives more than of wine for each case of cheese it exports to Italy. Similarly, Italy can gain from trade as long as it receives of cheese for each barrel of wine it exports to France. more than Based on your answer to the last question, a price ratio between benefit both countries. has a barrels of wine per case of cheese willSuppose that there are two countries, the North and the South. Given the North's resources, it can produce 4 Cars in an hour or 1 unit of wheat in an hour. Given the South's resources, it can produce 1 car per hour or 4 units of wheat in an hour. Both countries have forty hours in total to produce wheat and cars. Finally, the goal of each country is to have the most possible cars and wheat, but also to always have an equal amount of each. In other words, 10 cars and 10 wheat is just as valuable as 11 cars and 10 units of wheat, or 10 cars and 11 units of wheat, but 11 cars and 11 wheat would make the country even better off. The question below relates to the PPF for the North and the South. While you do not need to turn in a graph of the PPF, they may be helpful to answer these questions. Finally, the first set of questions refers to a world where the North and South cannot trade, while the second set of questions refers to a world where they can trade. In the latter set of…
- 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 Glacier and Rainier. Both countries produce corn and basil, each initially (i.e., before specialization and trade) producing 18 million pounds of corn and 9 million pounds of basil, as indicated by the grey stars marked with the letter A. BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Glacier A 12 18 24 30 36 CORN (Millions of pounds) 42 48 ? BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF I + 6 Rainier 12 18 24 30 36 CORN (Millions of pounds) I 42 48 (?) Glacier has a comparative advantage in the production of while Rainier has a comparative advantage in the production of Suppose that Glacier and Rainier specialize in the production…When a country specializes in the production of a good, this means that it can produce this good at a lower opportunity cost than its trading partner. Because of this comparative advantage, both countries benefit when they specialize and trade with each other. The following graphs show the production possibilities frontiers (PPFS) for Maldonia and Lamponia. Both countries produce lemons and sugar, each initially (i.e., before specialization and trade) producing 24 million pounds of lemons and 12 million pounds of sugar, as indicated by the grey stars marked with the letter A. (? (?) Maldonia Lamponia 64 64 56 56 48 PPF 48 40 40 32 32 24 24 PPF 16 16 16 24 32 40 48 56 64 16 24 32 40 48 56 64 LEMONS (Millions of pounds) LEMONS (Millions of pounds) Maldonia has a comparative advantage in the production of production of while Lamponia has a comparative advantage in the . Suppose that Maldonia and Lamponia specialize in the production of the goods in which each has a comparative advantage.…On the same graph, draw two PPFs: one for Arizona and one for North Dakota. Assume Arizona can produce 80 bales of hay or 20 pounds of sunflowers. North Dakota can produce 30 bales of hay or 120 pounds of sunflowers. For both states, points in between these limits are possible. Show how the total production of hay and sunflowers is greater with specialization than with self-sufficiency. Assume that the states trade 20 bales of hay for 30 pounds of sunflowers. Demonstrate the gains from trade with points on your graph. 1. Explain the opportunity costs of producing 1 bale of hay and 1 pound of sunflowers for each state. 2. Draw your own PPF graph on a piece of paper. 3. Clearly label all axes and lines. Include all relevant information.
