Previous Pilg Next Page Page 30 of 30 Question 30 West Virginia is located on mountains that contain large amount of coal. Thus, West Virginia provides the United States with a comparative advantage in coal production due to Specialized skills Mass production Relatively abundant inputs Page 30 of 30

Previous Pilg Next Page Page 30 of 30 Question 30 West Virginia is located on mountains that contain large amount of coal. Thus, West Virginia provides the United States with a comparative advantage in coal production due to Specialized skills Mass production Relatively abundant inputs Page 30 of 30

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 5PA

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Similar questions

What is comparative advantage?
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.
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I need help with question 9 please
4
Please answer correct explain plz Don't answer by pen paper plz
Solve it correctly
5
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Draw a table showing Autarky price ratios for each country and a diagram for the consumption and production possibilities frontier in Autarky when Canada produces 2000 units of corn with all its labour resources or 8000 units of wool with all its labour resources, consumes 1000 of corn and 4000 of wheat. Brazil has 12000 units of labour available. It takes 6 hours to produce a unit of corn and 3 hours to produce a unit of wool. Brazil consumes 1200 corn and 1600 wool.
Qus4 If one person has the absolute advantage in producing both of two goods, then that person Group of answer choices cannot have a comparative advantage in either good should specialize in the production of both goods will have the comparative advantage in only one good cannot benefit from trade must also have a comparative advantage in both goods