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6.
Question 6 options:
The possibility that nations with similar characteristics are probably going to trade with one another. These characteristics might incorporate degree of advancement, reserve funds rates, and regular assets, among others.
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- QUESTION 8 Question 3b- 5 Trade triangles of the partner and the home country in a two-country analysis are congruent because: O Trading prices (Px/Py) are different for each country. O Exports of the home country are imports of the parther country. O Trading prices (Px/Py) are lower for each country. The general equilibrium condition is met by both countries.Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- 85) Ricardo's simplified trade model is based on all of the assumptions except a. costs do not vary with the level of production b. the level of technology is fixed for all nations c. perfect competition prevails in all markets d. capital is the only factor of production 5Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
- 1933 PART IV: APPLICATION: MATCHING (1 x 30 = 30 marks) A- Match the term in Column A with its correct counterpart in Column B, and place the appropriate letter in Column C. Column A 1- natural resources sqmo 2- infrastructure 3- importing 4- comparative advantage 5- exporting Column B Column C (a) All the economic activities that work for the selling and shipping of finished products or raw materials from a domestic country to other countries or nations. (b) The economic theory that states that for the production or the selling of specific goods or services, some countries have the means to perform better that other countries under the same circumstances. (c) Materials available in nature, that are not the result of a human transformation and that have the potential to be of economic value. (d) The economic process which consists of buying raw materials or finished products from other nations in order to use them domestically. (e) A system well organized and planed by an official…Which nations form the Andean Community (formerly known as the Andean Pact)? Question 10 options: A) Bolivia, Columbia, Venezuela, Peru B) Bolivia, Venezuela, Ecuador, Peru C) Bolivia, Columbia, Ecuador, Peru D) Bolivia, Columbia, Ecuador, VenezuelaNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- B) Comparative Advantage 1. Country A has 100 workers and Country B has 100 workers. Every worker in Country A can produce 6 tons of wheat per year, or can produce 12 tons of corn per year. Every worker in Country B can produce 2 tons of wheat per year, or can produce 10 tons of corn per year. a. Which country has an absolute advantage in wheat? b. Which country has an absolute advantage in corn? c. Which country has a comparative advantage in wheat? d. Which country has a comparative advantage in corn? Suppose initially the countries do not trade and Country A has 50 workers producing corn and 50 producing wheat. Country B has 30 workers producing corn and 70 producing wheat. Fill out the following table: Country A Country B Corn Produced Wheat Produced Now the two countries trade with one another. e. What good does Country A specialize in? f. What good does Country B specialize in? If these countries have all workers produce the product that their country has a comparative advantage…A large share of intrafirm trade suggests Group of answer choices 1. There are increasing returns to trade in the industry. 2. The industry produces a highly differentiated, knowledge-intensive product. 3. Offshoring is important in the industry. 4. Strong comparative advantages.4. Specialization and trade 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 (that is, before specialization and trade) producing 18 million pounds of lemons and 9 million pounds of sugar, as indicated by grey points (star symbols) labeled point A. SUGAR (Millions of pounds) 48 42 38 30 24 18 PPF 12 8 0 0 8 1 Maldonia 12 18 24 30 36 LEMONS (Millions of pounds) 42 48 ? Maldonia has a comparative advantage in the production of production of advantage), the most the two countries can produce is SUGAR (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Lamponia A 12 18 24 30 36 42 48 LEMONS (Millions of pounds) ? , while…
