10:39 PM Mon Jan 30XnoOננטHIST 355 Race and Sex #2 Gutierrez (discussion questi... X●●●HW1.pdfGermanyJapanOf) Given all the information above, which country has a comparative advantagein producing cars? Which country has a comparative advantage in producinggrain? Why?HW1.pdfg) Both countries will spend half of each country's workers produce cars and halfproduce grain. Complete the following table with the quantities of carsproduced and consumed in each country if there is no trade.Car Produced andConsumed (million)Tons of Grain Producedand Consumed (million)h) If each country only produces the good in which they have a comparativeadvantage and then traded 300 million tons of grain for 200 million cars, willboth countries be better off? Why?71%te 10:39 PM Mon Jan 30XnoO1 of 5HIST 355 Race and Sex #2 Gutierrez (discussion questi...C1000Grains (millions)●●●HW1.pdf1. One German worker can produce either 5 cars or 10 tons of grain a year. OneJapanese worker can produce either 4 cars or 5 tons of grain a year. To keep thingssimple, assume that each country has 100 million workers.GermanyJapan500a) Complete the following table with the number of workers needed to makeone car or one ton of grain in Germany and JapanWorkers Needed to make1 CarO1/51/4X= 1.25 carsHW1.pdfb) Graph the production possibilities frontier (PPF) for German economy aswell as the PPF for Japanese economy in the same graph. Carefully label andidentify the endpoint in your graphs.1/101/51 Ton of Grain500 million cars6 Cars: 5x100 m =Grain : 10*100=1000 million tonsJapan Cars: 4×100 = 400 milGrain S* 100 = 500 mil tons400 So Cars (millionsc) In Germany, what is the opportunity cost of producing a car? What is theopportunity cost of producing a ton of grain? Show your work.Car: 5/10 = 0.5 GrainGrain: 10/5= 2 carsd) In Japan, what is the opportunity cost of producing a car? a ton of grain? Showyour work.Car: 4/5=0.8 grainhrain : 5/471%te

f) Given all the information above, which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain? Why? g) Both countries will spend half of each country's workers produce cars and half produce grain. Complete the following table with the quantities of cars produced and consumed in each country if there is no trade. Car Produced and Tons of Grain Produced Consumed (million) and Consumed (million) Germany Japan h) If each country only produces the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars, will both countries be better off? Why?

f) Given all the information above, which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain? Why? g) Both countries will spend half of each country's workers produce cars and half produce grain. Complete the following table with the quantities of cars produced and consumed in each country if there is no trade. Car Produced and Tons of Grain Produced Consumed (million) and Consumed (million) Germany Japan h) If each country only produces the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars, will both countries be better off? Why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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? illustrate an example of trade induced by comparative advantage. They assume that China and France each have 1,000 production units. With one unit of production (a mix of land, labor, capital, and technology), China can produce either 10 containers of toys or 7 cases of wine. France can produce either 2 cases of toys or 7 cases of wine. Thus, a production unit in China is five times as efficient compared to France when producing toys, but equally efficient when producing wine. Assume at first that no trade takes place. China allocates 800 production units to building toys and 200 production units to producing wine. France allocates 200 production units to building toys and 800 production units to producing wine. Trade at France’s Domestic Price. France’s domestic price is 2 containers of toys equals 7 cases of wine. Assume China produces 10,000 containers of toys and exports 400 containers to France. Assume France in turn produces 7,000 cases of wine and exports 1,400…
Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per month that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans Rye Country (Pairs per hour of labor) (Bushels per hour of labor) Bellissima 10 Dolorium 4 16 Initially, suppose Bellissima uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce rye, while Dolorium uses 3 million hours of labor per month to produce jeans and 1 million hours per month to produce rye. Consequently, Bellissima produces 5 million pairs of jeans and 30 million bushels of rye, and Dolorium produces 12 million pairs of jeans and 16 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.…
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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 will
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6. A) With the following data decide which country has comparative advantage for which good. Show your math. Good A Good B Country 1 300 30 Country 2 60 90 B) Using the data from above prove both countries can be better off trading with each other than if they do not trade. C) Why do we use comparative advantage to decide which country produces which good? Support your answer.
The table below presents the production possibilities schedules for the Florida and California, each of which produces potatoes and oranges. Production Possibilities Schedules for Florida and California Florida California Potatoes Oranges Potatoes Oranges (pounds) (pounds) (pounds) (pounds) 100 200 50 20 100 300 40 600 Which of the following statements is true concerning comparative advantage? Multiple Choice Florida has the comparative advantage in potatoes and California has the comparative advantage in oranges. California has the comparative advantage in potatoes and Florida has the comparative advantage in oranges. Florida has the comparative advantage in both potatoes and oranges. California has the comparative advantage in both potatoes and oranges.