d) When trade opened which country exports which good? Suppose the international price is ½ bottle of wine per kilo of cheese, what happens to production in each country (in terms of specialization of goods)? e) In this free-trade equilibrium, 2 million kilos of cheese and 1 million bottle of wine are traded. What is the consumption point in each country with free trade? Show this graphically. Also show vertical and horizontal intercepts of the trade lines for each country. f) Does each country gain from trade? Explain, referring to your graphs as is appropriate.

Q: Consider an H-0 economy in which there are two countries (US and France), two goods (wine and…

A: Trade is defined as the exchange of commodities and services across the boundary of the country.

Q: Suppose that the productivity per worker in the milk and cranberry juice industries of Southland and…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: 42. In Canada, one labour hour can produce 6 bagels or 24 chairs In the United States, one…

A: Production possibilities of Canada United States Bagels 6 14 Chairs 24 19 Opportunity cost…

Q: United States can produce either 10 units of bread or 30 units of steel per labour hour. Canada can…

A: The given information can be summarised in the table below :-   Bread Steel US 10 30 Canada…

Q: In a world where the only goods are cell phones and cereal: Jennereelam can produce: 80m kilos of…

A: According to the question given,  Jennereelam can produce 80 million kilos of cereal and 200…

Q: In 2017, Ecuador's biggest export was crude (unprocessed) petroleum, 63% of which it exported to the…

A: A country is said to have a comparative advantage when a lower opportunity cost a country poses to…

Q: For each hour worked, a U.S. worker can produce 4 dozen baguettes, or 2 tonnes of aluminum. Canadian…

A: Comparative advantage refers to a situation where one country or person produces the good at a lower…

Q: How can we maximize global production through specialization? Absolute and comparative advantage are…

A: Absolute advantage occurs when a country can produce more of a good at same cost than other country…

Q: Suppose in a given year, France can produce 100 tons of cheese or 500 oranges. Spain can produce 150…

A: "According to the comparative advantage countries will produce and export those goods which they can…

Q: Assume that Germany has 1200 units of labor available and it can produce two goods: apples and…

A: Comparative advantage refers to the phenomenon where the country can produce the good with the…

Q: Suppose that when a country opens to free trade in a good, the price of that good rises from $10 to…

A: First we graph the situation that is given to us. In the above graph, initial equilibrium (before…

Q: Which phrase best completes the diagram? Globalization ? O A. Improved incomes for poor people in…

A: Globalization refers to the speedup of movements and exchanges of human beings, products, and…

Q: Relative to China, in which industries do you think the US has a comparative advantage (in which…

A: US is a developed and one of the most developed economy in the world.

Q: For each hour worked, a U.S. worker can produce 4 loaves of bread, or 2 tons of steel. Canadian…

A: According to the given information, one can compute the comparative advantage of both the countries…

Q: Suppose Big Country can produce 80 units of X by using all its resources to produce X or 60 units of…

A: Assuming constant costs, the opportunity cost of producing 1 unit of Y in big country is 1.33 units…

Q: Greece and Italy both produce olive oil and cheese. With the same amount of labour Greece produces…

A: A CA {"comparative advantage"} is described in terms of the relative cost of opportunity of the…

Q: Refer to Table 1-1  Assume that Derryland and Whetonia each has 40 labor hours available and that…

A:

Q: How useful is economic geography in explaining the success of regional economic integration blocs?…

A: Regional economics is an economics subdiscipline that is generally seen as a social science field.…

Q: Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can…

A:

Q: (Comparative Advantage) Suppose that each US worker can produce 8 units of food or 2 units of…

A: Absolute advantage refers to a country producing more units of output relative to another country…

Q: . Be sure to label all points. Suppose the domestic autarky relative price M/S=1 and autarky…

A: Comparative advantage is when a country is able to produce a good or service at a lower opportunity…

Q: 08. Given the above set of production possibilities and consumption (trade) possibilities frontiers,…

A: In Portugal Cost of 1 unit wine is 1/3 cloth; Cost of 1 unit of cloth is 3 wine. In England Cost of…

Q: Q58 Suppose Spain is currently producing 90 units of wine and 10 units of cheese, but to produce 10…

A: Answer: To produce 10 more units of cheese Spain sacrifices 30 units of wine. So the opportunity…

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: QUESTION 17 Consider two countries: Ireland and Belgium. Each country has 40 workers, each supplying…

A:

Q: Now, assume that each country has to use its own labour to transport goods from the other country.…

A: The Ricardian theory represents the perfect competition between two firm producing two goods using…

Q: Under free trade, advantage is the reason for positive gains to both economies, whereas under free…

A: Absolute advantage portrays what is happening in which an individual, business or nation can create…

Q: Suppose that in the absence of trade, the U.S. price for bicycles was higher than the world price…

A: Free trade policy is defined as that policy which puts no restriction on import and exports of goods…

Q: Which country has an absolute advantage in the production of textiles? Which country has a…

A: Opportunity cost is the benefits that are derived from the alternate option that is not chosen by an…

Q: Nation 1 - 400 million employees Nation 2 - 400 Million employees Nation 1 and 2 workers can…

A: Absolute advantage refers to the ability of a country or a producer to produce a good using fewer…

Q: 1. Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523…

A: Absolute advantage: If a country has a lower cost of producing a commodity compared to some other…

Q: 3. Be sure to label all points. Suppose the domestic autarky relative price M/S=1 and autarky…

A: Comparative advantage is when a country is able to produce a particular good or services at a lower…

Q: What is the trade balance between the U.S. and China from 2018 to 2020? Graph the year and trade…

A: As per the guidelines only the first question can be answered. Kindly repost the questions. Trade…

Q: Consider the production productivity matrix of two goods from the US and India:   United States of…

A: Answer-

Q: Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can…

A: Answer: Given, Country Pretzels per labor hour Cars per labor hour Germany 40 20 Canada 61 14…

Q: According to the Infant Industry Argument O Poor countries can foster economic development by using…

A: Infant Industry refers to the new and the early stages of development that is not yet capable of…

Q: Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person…

A: Absolute advantage indicates the ability of an economy to produce a good more efficiently with the…

Q: Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in…

A: Canswicki requires to renounce 5 cans of tuna fish for 1 container of baby formula, though tuna fish…

Q: Which of the following statements is NOT true? O the benefits of economic growth may be passed on to…

A: Economic growth is the rise or improvement in the market value of goods and services after…

Q: With respect to Table 2.5, indicate in each case the commodity in which each nation has a…

A: 1) Absolute advantage in one commodity implies which country can produce more of the great with the…

Q: We have export and import data of a country for the last two years.  In addition, let's assume that…

A: According to the comparative advantage, the country produces only those good which have lower…

Q: US & JAPAN US JAPAN Cars 24 10 Computers 5 10. What is the US's opportunity cost of making cars?…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…