Econ 2202Homework #2Use the following information to answer questions 1-6.Consider two countries: France and Tunisia, who can produce sweaters and wine.In France it takes one worker to produce one sweater and one worker to producea bottle of wine. In Tunisia it takes two workers to produce one sweater and threeworkers to produce a bottle of wine. Assume each country has 6,000 workers.1. Who has the absolute advantage in the production of sweaters?2. Who has the absolute advantage in the production of bottles of wine?3. Who has the comparative advantage in the production of sweaters?4. Who has the comparative advantage in the production of bottles of wine?5. What should France specialize in to possibly benefit from trade?6. What should Tunisia specialize in to possibly benefit from trade?

1) One of the Most Important Benefits of Sweaters When a country is able to create more of a product…

Answered: Econ 2202 Homework #2 Use the following…

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 31P: Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil...

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Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
Explain why converging economies may present a strong argument for limiting flows of capital but not for limiting trade.
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Use the following production possibilities frontier for a country to answer the following questions. Which point(s) are unattainable? Briefly explain why. Point A because it is inside the production possibilities frontier. Point E because it is outside the production possibilities frontier. E All the points because the production of each has an opportunity cost. C None of the points because they all are feasible. Points B, C, and D because they are on the production possibilities frontier. A D PPE Consumption goods -... Capital goods
Use the following production possibilities frontier for a country to answer the following questions. Which point(s) are unattainable? Briefly explain why. O Point A because it is inside the production possibilities frontier. All the points because the production of each has an opportunity cost. B E Point E because it is outside the production possibilities frontier. None of the points because they all are feasible. A Points B, C, and D because they are on the production possibilities frontier. Which point(s) are efficient? Briefly explain why. A Points A, B, C, and D because they are attainable. O Points B, C, and D because this is where maximum output is produced with available resources. PPF Point A because it is inside the production possibilities frontier. Point E because it is where the most capital and consumption goods combined are produced. Consumption goods O Point B because it is where the most resources are used to produce capital goods. Which point(s) are inefficient?…
#30
s page Table 3-8 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. England Spain Labor Hours Needed to Make 1 Unit of Cheese 2 3 Bread 3 6 Number of Units Produced in 24 Hours Cheese Bread 12 8 S 4 Refer to Table 3-8. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Spain. If we were to do this, measuring bread along the horizontal axis, then a. the slope of England's production possibilities frontier would be -2 and the slope of Spain's production possibilities frontier would be -5. b. the slope of England's production possibilities frontier would be -.75 and the slope of Spain's production possibilities frontier would be -1. c. the slope of England's production possibilities frontier would be -0.67 and the slope of Spain's production possibilities frontier would be-0.5. O d. the slope of England's production possibilities frontier…
1. Use the information in the following table to discuss the trade pattern between Brazil and Korea for coffee and television sets. Show all your calculations in support of your conclusion. Explain your answer. Output per Hour Worked Brazil Korea Coffee 2kg Ikg T.V. 1 3 2. Suppose the production of lamb is labour intensive and the production of car is capital intensive. Use the following table to discuss the trade pattern between Canada and Australia for car and lamb. Show all your calculations in support of your conclusion. Explain your answer. Using a hypothetical PPF show on graph how Canada can benefit from trade. Stock of Resources Canada Australia Сapital 50 machines 20 machines Labour 200 workers 120 workers
Suppose that in a year an American worker can produce 60 shirts or 30 computers and a Chinese worker can produce 60 shirts or 12 computers. There are 1 million workers in each country.
An American worker can produce either 5 cars or 8 tons of grain a year. A Japanese worker can produce either 4 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. Workers Needed to Make 1 Car 1 Ton of Grain United States Japan Use the blue line (circle symbol) to graph the production possibilities frontier for the American economy. Then use the green Iline (triangle symbol) to graph the production possibilities frontier for the Japanese economy. 500 450 U.S. 400 350 Japan 300
Chairs Sofas Unskilled Workers 6 4 Skilled Workers 10 6 The first column in the above table above shows how many chairs an unskilled or skilled worker could produce in eight hours. The second column shows how many sofas an unskilled or skilled worker could produce if instead they spent those eight hours producing sofas. According to the data, [ Select ] an absolute advantage in making either type of good. Based on comparative advantage, who should make chairs and who should make sofas? [ Select ] a comparative advantage in making chairs. [ Select] a comparative advantage in making sofas.

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