Solve the problem below (comparativeadvantage). The goal is to work through the math.Explain in detail.The scenario-Exchanging Wine for Fabric (twostate economy w/ no transaction costs or currencyexchange issues)1 Bolt of fabric =o 100 hours of French laboro 90 hours of Spanish labor1 pipe of wine =o 120 hours of French laboro 60 hours of Spanish laborFranceSpainFabric10090Wine12060Opportunity CostsFrance-labor to produce 1 bolt of fabric = laborto produce .8 pipes of wine.Spain-Labor to produce 1 bolt of fabric = labor toproduce 1.50 pipes of wine.Spain has an absolute advantage in theproduction of both commodities-should it tradewith France?

Fabric Wine FRANCE 100 120 SPAIN 90 60

Answered: Solve the problem below (comparative…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 2-6 One Cell Phone Lumber (per board foot) Estonia 40 hours 8 hours Finland 16 hours 4 hours Table 2-6 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. Refer to Table 2-6. If the two countries specialize and trade, who should export cell phones? There is no basis for trade between the two countries. Estonia Finland They should both be importing cell phones.
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Figure 3-8 Chile's Production Possibilities Frontier 20 soybeans 18 16 14+ 12 10 8 6 4 2 (in pounds) 2 + 4 6 8 10 12 14 16 18 20 coffee pounds) (in 20 soybeans 18 5550 16 14+ 12 10 8 6 4 2 (in pounds) Colombia's Production Possibilities Frontier both goods and import neither good. neither good and import both goods. 2 4 6 8 10 12 14 16 18 20 coffee (in pounds, Refer to Figure 3-8. Chile should specialize in the production of coffee and import soybeans. soybeans and import coffee.
* Course Placement All E R Country 2Learn Shoes Glasses Mexico 10 12 The table below describes production possibilities for Mexico and Nigeria. Each number in the table shows the number of workers needed to produce one unit of the product. Nigeria 18 5 1. What is the opportunity cost of producing Shoes in Mexico? Glasses 2. What is the opportunity cost of producing Glasses in Mexico? Shoes 8 In-Text Citations 3. What is the opportunity cost of producing Shoes in Nigeria? Glasses 4. What is the opportunity cost of producing Glasses in Nigeria? Shoes Study.com GGoogle 5. Which country has an absolute advantage in producing Shoes? 6. Which country has an absolute advantage in producing Glasses? Q Search 193 F7 PRE M W ParentVUE prt sc B SAM SAM y! Informal spee home P 国

5. Comparative and absolute advantage Carlos and Deborah are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Carlos Deborah Corn (Bushels per acre) 20 28 Rye (Bushels per acre) 4 7 On the following graph, use the blue line (circle symbol) to plot Carlos's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Deborah's PPF.
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Even if neither country had a comparative advantage, why might these countries still experience gains from trade? simple plus example please
1. a. What is meant by the “gains from trade”?b. Illustrate and label these gains on a figure
Specialization will increase output when it is based on: absolute advantage. O comparative advantage. who can produce at the least comparative cost. O who can produce the fastest.
Table 3-5 England Spain Labour hours needed to make one unit: Cheese 1 Select one: O a. consumers who like bread O b. owners of cheese-producing companies Bread 2 8 O c. consumers who like cheese O d. owners of milk-producing companies Amount produced in 40 hours: Cheese Refer to Table 3-5. If England and Spain specialize and trade according to their respective comparative advantage, who gains in the short run in England? 40 20 Bread 20 5
I'm confused on how to calculate the gains from trade. I don't know what to do.
Comparative Advantage: Suppose that the United States and Switzerland produce bicycles and chocolate bars: Bicycles per worker/year Chocolate Bars per worker/year 10,000 20,000 Switzerland 1 United States 5 a. The United States has an absolute advantage in both bicycles and chocolate bars, but which country has a comparative advantage producing bicycles? Chocolate bars? b. Assume there are 10,000 workers. Draw the production possibilities frontier for the United States prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on the U.S. production possibilities frontier (put bicycles on the x-axis and millions of chocolate bars on the y-axis). c. Assume there are 10,000 workers. Draw the production possibilities frontier for Switzerland prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on Switzerland's…

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