Numbers and Graphs: Chapter 20 Arcardia Euphoria Combinations Good X Good Y Good X Good Y A 30 0 240 0 B 20 100 160 40 C 10 200 80 80 D 0 300 0 120 Arcardia has a comparative advantage in the production of good Y, and Euphoria has a comparative advantage in the production of good X. Which of the following terms of trade would allow both Arcardia and Euphoria to gain from trade? Check all that apply. 1/3 unit of good X per unit of good Y =Tips 3 units of good X per unit of good Y Tips 3/2 units of good X per unit of good Y 10 units of good X per unit of good Y Initially, neither of the two economies is specializing in the production of one of the two goods, nor are the two economies trading with each other. In the no-specialization-no-trade (NS-NT) scenario, Arcardia produces and consumes 10 units of good X and 200 units of good Y (combination C), and Euphoria produces and consumes 80 units of good X and 80 units of good Y (combination C). Now suppose that each economy decides to completely specializes in the production of the good in which it has a comparative advantage, producing units of good X, and the economy that produces good Y will only that good. In this case, the economy that produces good X will produce| produce units of good Y.
Numbers and Graphs: Chapter 20 Arcardia Euphoria Combinations Good X Good Y Good X Good Y A 30 0 240 0 B 20 100 160 40 C 10 200 80 80 D 0 300 0 120 Arcardia has a comparative advantage in the production of good Y, and Euphoria has a comparative advantage in the production of good X. Which of the following terms of trade would allow both Arcardia and Euphoria to gain from trade? Check all that apply. 1/3 unit of good X per unit of good Y =Tips 3 units of good X per unit of good Y Tips 3/2 units of good X per unit of good Y 10 units of good X per unit of good Y Initially, neither of the two economies is specializing in the production of one of the two goods, nor are the two economies trading with each other. In the no-specialization-no-trade (NS-NT) scenario, Arcardia produces and consumes 10 units of good X and 200 units of good Y (combination C), and Euphoria produces and consumes 80 units of good X and 80 units of good Y (combination C). Now suppose that each economy decides to completely specializes in the production of the good in which it has a comparative advantage, producing units of good X, and the economy that produces good Y will only that good. In this case, the economy that produces good X will produce| produce units of good Y.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Numbers and Graphs: Chapter 20
Arcardia
Euphoria
Combinations
Good X
Good Y Good X
Good Y
A
30
0
240
0
B
20
100
160
40
C
10
200
80
80
D
0
300
0
120
Arcardia has a comparative advantage in the production of good Y, and Euphoria has a comparative advantage in the production of good X.
Which of the following terms of trade would allow both Arcardia and Euphoria to gain from trade? Check all that apply.
1/3 unit of good X per unit of good Y
=Tips
3 units of good X per unit of good Y
Tips
3/2 units of good X per unit of good Y
10 units of good X per unit of good Y
Initially, neither of the two economies is specializing in the production of one of the two goods, nor are the two economies trading with each other. In
the no-specialization-no-trade (NS-NT) scenario, Arcardia produces and consumes 10 units of good X and 200 units of good Y (combination C), and
Euphoria produces and consumes 80 units of good X and 80 units of good Y (combination C).
Now suppose that each economy decides to completely specializes in the production of the good in which it has a comparative advantage, producing
units of good X, and the economy that produces good Y will
only that good. In this case, the economy that produces good X will produce|
produce
units of good Y.
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