The table below shows the labour productivity for the countries of Yin and Yang.YinYangYinYangTotalsMachines32a. If the working populations of Yin and Yang are both 50 million, divided equally between the two industries in each country, howmany machines and loaves of bread (in millions) are currently being produced in Yin and Yang?MMachinesYinYangTotalsYin: machinesYang: loaves of bread7550125ororLoaves ofbread210b. If the two countries decide to specialize, in which product does each country have a comparative advantage?Machines1500150Loaves ofbread50250300c. If the two countries specialize in the product in which they have a comparative advantage, show their total outputs in the tablebelow.Loaves ofbreadTIENE0500500< PrevO Search16 of 18wwwSAMSUNGNext >Help Birkensd. What are the gains from trade?Loaves ofbreadMachinesPrevSearch16 of 18ASAN ANSAMSUNG4Next >

Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Answered: d. What are the gains from trade?…

Business

Economics

d. What are the gains from trade? Loaves of bread Machines

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 7SCQ: If the removal of trade banters is so beneficial to international economic growth, why would a...

See similar textbooks

Related questions

Q: Which of the following is international trade? a. Trade between regions b. Both (b) and (c) c.…

A: International trade is very beneficial for the economy of a country because it influences the GDP of…

Q: Economics Why would Egypt import goods that they already export?

A: Two-way (or intraindustry) commerce is international trade in which countries import and export the…

Q: What are the benefits of international trade and how do countries gain from trade?

A: International trade, which involves the exchange of goods and services between countries, offers…

Q: Some Basic Facts about Trade?

A: Trade is a basic concept in economical activity, trade is defined as the exchange of goods and…

Q: Answer the question on the basis of the accompanying production possibilities tables for two…

A: Comparative cost advantage: - it is a principle of international trade given by David Ricardo which…

Q: explain why trade occurs among the countries?

A: International trade is the exchange of goods and services between countries.

Q: Week 11 Homework You must submit your assignments as a Microsoft Word document. Microsoft Word is…

A: Comparative advantage:- The ability of a country to produce goods at lower opportunity cost than…

Q: Explain why trade Is Important.

A: In economics, trade can be understood as the buying and selling of goods and services in an economy.…

Q: Examine the meaning of the word "free" in "free trade" what is free about it? who is it free for?…

A: Imports and exports are not controlled under a free trade regime. It can also be defined as the…

Q: How do two countries benefit from trading with each other?

A: Countries generally do trade with other countries when they have a lack of resources, to satisfy and…

Q: 1. Trade patterns a. How big is world trade today in percentage of world GDP? b. When did world…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: A common fallacy that is used to oppose trade is the idea that a. “if it’s not broken, don’t fix…

A: International trade is considered beneficial for the countries as they can receive what they want…

Q: What are the benefits gained from trade? Calculate and show them.

A: An economy possesses a comparative advantage in the production of a good or service if it can…

Q: What is protection and free trade

A: Protection and free trade are two contrasting strategies to international change and financial…

Q: Explain what is the pattern of trade, by giving examples.

A: Trade patterns. Long-range path of a security or product future cost, diagrammed by defining one…

Q: What’s the trade in Quetta, Pakistan?

A: Quetta is the largest city of Balochistan in Pakistan.

Q: What are the pros and cons of free trade.

A: Free trade refers to the trade that is free from all artificial barriers. It signifies a…

Q: What’s the trade in Mumbai, India?

A: Mumbai is the financial and economic capital of the country. It is also called the economic power…

Q: What are the main arguments for free trade?

A: The international trade refers to the sale and purchase of different goods and services across…

Q: What is the importance of the terms of trade?

A: Introduction - A key economic indicator of a company's health based on its imports and exports is…

Q: Why the gains from trade are less ?

A: When talking about gains from trade, it is generally based on international trade as countries make…

Q: What are the benefits of free international trade?

A: Free international trade is always a controversial topic with different views.

Q: I'm confused on how to calculate the gains from trade. I don't know what to do.

A: If both specialise gains from trade would be 60-20=40 tons of tea.

Q: Explain the importance of foreign trade

A: International Trade or Foreign Trade is the exchange of goods and services between the various…

Q: Effects of Free Trade and Restrictions

A: The idea of free trade implies that the market should be transparent in terms of international…

Q: What is free trade? Write down merits & demerits of free trade.

A: In economics, trade explains an interaction between two or more people to make an exchange of…

Question

The table below shows the labour productivity for the countries of Yin and Yang.
Yin
Yang
Yin
Yang
Totals
Machines
3
2
a. If the working populations of Yin and Yang are both 50 million, divided equally between the two industries in each country, how
many machines and loaves of bread (in millions) are currently being produced in Yin and Yang?
M
Machines
Yin
Yang
Totals
Yin: machines
Yang: loaves of bread
75
50
125
or
or
Loaves of
bread
2
10
b. If the two countries decide to specialize, in which product does each country have a comparative advantage?
Machines
150
0
150
Loaves of
bread
50
250
300
c. If the two countries specialize in the product in which they have a comparative advantage, show their total outputs in the table
below.
Loaves of
bread
TIENE
0
500
500
< Prev
O Search
16 of 18
www
SAMSUNG
Next >
Help

Birkens
d. What are the gains from trade?
Loaves of
bread
Machines
Prev
Search
16 of 18
AS
AN AN
SAMSUNG
4
Next >

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Intellectual property and patent laws vary greatly in developing countries. How wouldyou propose to protect your products in a developing country with a large populationwhere the CEO of a generic pharmaceutical manufacturer states: “The U.S. wouldgrant a patent on a piece of toilet paper. Just because the U.S. granted a patent doesn’tmean it should be valid in our country.”
16
Please as soon as possible.thank you
What is import substitution industrialisation? What role does learning by doing plays and when does it make sense for the government to interfere?
2
16
Will free trade and perfect competition lead to an equalization of wage rateacross countries? Explain. Why would the wage rate vary between developedand developing countries in the same sector in a real world situation, even afterthe adoption of free trade?
Please do questions d - e - f
Explain why converging economies may present a strong argument for limiting flows of capital but not for limiting trade.
If the removal of trade banters is so beneficial to international economic growth, why would a nation continue to restrict trade on some imported or exported products?
Consider the following Ricardian model with 2 countries and 2 goods. The table below provides information on the size of countries' labor force and their productivity in producing each good. India China 60 Labor Supply 350 workers workers Juice 3 workers 7 workers Tea 2 workers 5 workers Suppose Indian workers become three times more productive in producing juice. Does the pattern of trade change? Why and why not? Edit View Insert Format Tools Table 12pt v Paragraph v B I
Typed plz and Asap thanks