If the United States produces 8 automobiles and Canada produces and Canada produces 2 automobiles, and the United States produces 8 units of lumber and Canada produces 4 units of lumber, should Canada trade with the U.S.? If so, what should be imported and what should be exported?

If the United States produces 8 automobiles and Canada produces and Canada produces 2 automobiles, and the United States produces 8 units of lumber and Canada produces 4 units of lumber, should Canada trade with the U.S.? If so, what should be imported and what should be exported?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter33: International Trade

Section: Chapter Questions

Problem 11QP

See similar textbooks

Related questions

Q: Time it takes to produce one car (hours) Time it takes to produce one Laptop (hours) Canada 3,500.00…

A: In oder to know which country will export which goods. Requires comparative advantage analysis.…

Q: The United States is more productive in most activities than are most of other countries because it…

A: Absolute advantage refers to a situation where one country or individual can produce a particular…

Q: The graph to the right shows the supply and demand for beef in the United States, under the…

A: A tariff is an imposition of tax by the government on imported items from other nations. It provides…

Q: When does a country become an exporter of a good?An importer?

A: International trade occurs when different countries exchange different goods and services with each…

Q: Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United…

A: Export to GDP ratio = how much a country exports/country's GDP The main reason behind these…

Q: Which is better for a country—to export more or to import more?

A: Export refers to the selling the good produced in one country to another country. The seller of the…

Q: If a country produces more food and electronics than another country does it have a comparative…

A: Theory of comparative advantage was given by David Ricardo. According to David Ricardo gains from…

Q: The following hypothetical production possibilities tables are for China and the United States.…

A: Yes, the two area should specialize as the cost of apparel is less in China that United states. In…

Q: Trade makes us worse off because it makes our economy weaker. We need to be completely…

A: Trade improves our condition. Both nations can benefit from trade when two nations deal with each…

Q: If the U.S. did not trade what price would the good cost? If the world price was $200 what quantity…

A: The price is set at a point where demand is equal to supply, in this case demand and supply are…

Q: advantage in coffee?

A: In economics, the principle of absolute advantage refers to the ability of a party or a country to…

Q: Evaluate the following statement: "Canada has an absolute advantage in growing wheat. Therefore, it…

A: The absolute advantage is the ability of a country to produce more quantity of output than the other…

Q: If the United States produces 8 automobiles and Canada produces 2 automobiles and the United States…

A: Opportunity cost is the cost that is foregone in order to make a choice.

Q: In reference to tariffs, What is the reason that U.S. imposes tariffs? why the U.S. imposes tariffs…

A: United States is an open economy due to which its makes an import and export of various products and…

Question

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

From the Work It Out Effects of Trade Barriers, you can see that a tariff raises the price of imports. What is interesting is that the price rises by less than the amount of the tariff. Who pays the rest of the tariff amount? Can you show this graphically?
If the United States produces 8 automobiles and Canada produces 2 automobiles and the United States produces 8 units of lumber and Canada produces 4 units of lumber, should the U. S. trade with Canada? If so, what should be imported and what should be exported?
Please help.
Trade makes us worse off because it makes our economy weaker. We need to be completely self-sufficient."Evaluate this statement based on what you've learned about gains from trade, comparative advantage, and absolute advantage in this chapter. Is the statement true or false, and why
Evaluate the following statement: "Canada has an absolute advantage in growing wheat. Therefore, it must have a comparative advantage in growing wheat.
The graph to the right shows the supply and demand for beef in the United States, under the assumption that the United States can import as much as it wants at the world price of beef without causing the world price of beef to increase. a. How much beef does the United States import at the world price(WP)? 500 million pounds of beef (enter a whole number). b. Now suppose that the United States imposes a tariff on beef of $0.50 a pound. How much beef is now imported? million pounds of beef (enter a whole number). Price ($ per lb.) $2.50 $2.00 700 900 11001200 Q (millions of lbs.) Sus WP + tariff WP Dus
Which is better for a country—to export more or to import more?
When does a country become an exporter of a good?An importer?
Comment on the following statement: "The United States is more productive in most activities than are most of other countries because it has an absolute advantage in the production of most goods and services. Therefore we should restrict international trade as it only benefits other countries at the expense of the United States."
If the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is consumer surplus at the world price? Producer surplus at the world price? Who benefits from the free trade and who gets hurt If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus from $200 to $300? What does producer surplus do with the price going from $200 to $300? What does the government gain with the tariff? Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?
Here is what Sweden and Canada can produce: Country Tons of Food Tons of Metal Sweden 40,000 XXXXX Canada XXXXX 1,000 Sweden has a comparative advantage in metal The price of metal will be between 10 and 20 food, if these countries trade. How much metal can Sweden produce? If you think the answer is 17,000, then write 17000, not 17,000.
Suppose that in the next few years Saudi Arabia oil production increases significantly. a. How will this influence the term-of-trade and welfare of Japan that is an oil importer? Explain. b. How will the terms-of-trade and welfare change in Kuwait that is an oil exporter? Explain.