Quantity of Computers (Milons)2724DD10203040 50 60Quantity of Shirts (Millions)70 80008100US PPFTrue or False: There are no longer gains from trade.TrueFalse-AChina PPF++HUS without Trade-*China without TradeSuppose that without trade the workers in each country spend half their time producing each good.Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) toindicate this production and consumption point for China.If these countries were open to trade,The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countriesbetter off is shirts per computer, and the lowest price that makes both countries better off is shirts per computer.would export shirts andwould benefit from trade.Suppose that China catches up with American productivity so that a Chinese worker can produce 100 shirts or 20 computers. 8. Problems and Applications Q8Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers.There are 1 million workers in each country.Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) tograph the production possibilities frontier for China.Quantity of Computers (Millions)302418Quantity of Shirts (Millions)8010010U.S. PPF44China PPF+US without TradeChina without Trade?Suppose that without trade the workers in each country spend half their time producing each good.Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) toindicate this production and consumption point for ChinaIf these countries were open to trade,The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countriesbetter off is shirts per computer, and the lowest price that makes both countries better off is shirts per computerwould export shirts andwould benefit from trade.

Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Quantity of Computers (Milons) 2 15 10 20 30 40 50 60 70 Quantity of Shirts (Millions) 80 00 8 100 US. PPF 141 China PPF + US without Trade * China without Trade Suppose that without trade the workers in each country spend half their time producing each good. Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to indicate this production and consumption point for China. If these countries were open to trade, The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is shirts per computer, and the lowest price that makes both countries better off is shirts per computer. Suppose that China catches up with American productivity so that a Chinese worker can produce 100 shirts or 20 computers. True or False: There are no longer gains from trade. True False would export shirts and would benefit from trade.

Quantity of Computers (Milons) 2 15 10 20 30 40 50 60 70 Quantity of Shirts (Millions) 80 00 8 100 US. PPF 141 China PPF + US without Trade * China without Trade Suppose that without trade the workers in each country spend half their time producing each good. Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to indicate this production and consumption point for China. If these countries were open to trade, The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is shirts per computer, and the lowest price that makes both countries better off is shirts per computer. Suppose that China catches up with American productivity so that a Chinese worker can produce 100 shirts or 20 computers. True or False: There are no longer gains from trade. True False would export shirts and would benefit from trade.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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