b. What is the total gain in apparel and chemical output that would result from such specialization?Apparel:unit(s)Chemicals:|unit(s)c. What are the limits of the terms of trade?The most China will trade (give up) is unit(s) of apparel for 1 ton of chemicals.The most the United States will trade (give up) is O ton(s) of chemicals for 1 unit of apparel.This implies the following range, or limits, of the terms of trade:1 unit of apparel forton(s) of chemicals (from China's position)1 unit of apparel forton(s) of chemicals (from the U.S. position)Suppose that the actual terms of trade are 1 unit of apparel for 12 tons of chemicals, and that the amount exchanged is 4 units ofapparel for 6 tons of chemicals. What are the gains from specialization and trade for each nation?China has a gain ofunit(s) of apparel vThe United States has a gain ofton(s) of chemicals v The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization andtrade the optimal product mix for China is alternative B and for the United States is alternative U. [Note: 1 unit of apparel is 1,000 itemsand 1 unit of chemicals is 1 ton.]China Production PossibilitiesProductAEFin thousands)ApparelChemicals (in tons)3024181212182430U.S. Production PossibilitiesProductRSTUVWApparel (in thousands)Chemicals (in tons)10864248121620Instructions: Enter your answers as whole numbers.a. Are comparative-cost conditions such that the two areas should specialize?YesIf so, what product should each produce?China should produce apparelThe United States should produce chemicals

ns of trade? ve up) is ] unit(s) of apparel for 1 ton of chemicals. wvill trade (give up) is [ ]ton(s) of chemicals for 1 unit of apparel. nge, or limits, of the terms of trade: ton(s) of chemicals (from China's position) ton(s) of chemicals (from the U.S. position) of trade are 1 unit of apparel for 1½ tons of chemicals, and that the amount exchanged is 4 units of What are the gains from specialization and trade for each nation? |unit(s) of apparel of ton(s) of chemicals ♥

ns of trade? ve up) is ] unit(s) of apparel for 1 ton of chemicals. wvill trade (give up) is [ ]ton(s) of chemicals for 1 unit of apparel. nge, or limits, of the terms of trade: ton(s) of chemicals (from China's position) ton(s) of chemicals (from the U.S. position) of trade are 1 unit of apparel for 1½ tons of chemicals, and that the amount exchanged is 4 units of What are the gains from specialization and trade for each nation? |unit(s) of apparel of ton(s) of chemicals ♥

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 6SCQ: Table 33.15 shows how the average costs of production for semiconductors (the chips In computer...

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How does comparative advantage lead to gains from trade?
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. Product Apparel Chemicals (tons) Product Apparel Chemicals (tons) (Click to select) ✓ China Production Possibilities A 10,000 0 units B 8,000 4 6,000 8 U.S. Production Possibilities R S 30,000 24,000 0 6 T 18,000 12 ton(s) D 4,000 12 U 12,0000 18 E 2,000 16 V 6,000 24 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? F 0 20 W 0 30 If so, what product should each produce? China should produce (Click to select) The United States should produce (Click to select) ✓ b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: Chemicals:
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities Product D E F A B 20,000 16,000 0 8 с 12,000 16 Apparel Chemicals (tons) 4,000 0 8,000 24 32 40 U.S. Production Possibilities Product S T U V W Apparel R 60,000 48,000 0 12 36,000 24,0000 12,000 0 Chemicals (tons) 24 36 48 60 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) If so, what product should each produce? China should produce [(Click to select) The United States should produce [(Click to select) b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and…
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities Product A в D E F Apparel Chemicals (tons) |20,000 16,000 12,000 8,000 4,000 8 16 24 32 40 U.S. Production Possibilities Product R S T U V W Apparel Chemicals(tons) 60,000 48,000 36,000 24,0000 12,000 12 24 36 48 60 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) V If so, what product should each produce? China should produce (Click to select) ♥ The United States should produce (Click to select) V b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: |ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units…
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A B D E F 120,000 48,000 Apparel Chemicals(tons) 96,000 72,000 24,000 24 48 72 96 120 Customize and control Google Chrome U.S. Production Possibilities Product R S T U V W Apparel Chemicals(tons) 40,000 32,000 24,000 16,0000 8,000 16 32 48 64 80 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) ♥ If so, what product should each produce? China should produce (Click to select) V The United States should produce (Click to select) V b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the terms of trade? units of…
scenario Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.
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The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities в Product Apparel (in thousands) Chemicals (in tons 30 24 18 12 12 18 24 30 U.S. Production Possibilities Product R T. Apparel (in thousands) Chemicals (in tona) 10 2. 16 4. 8. 12 20 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two areas should specialize? [(Click to select) If so, what product should each produce? China should produce [(Cick to select) The United States should produce (Cick to select) b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel:
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