Suppose Japan and Great Britain produce only cell phones and digital music players. Assume that each country usesonly labor to produce each good, and that the cell phones and digital music players made in Japan and Great Britain areexactly alike. The table below shows how much each country can produce of each good with one hour of labor:Output per Hour of LaborCell PhonesJapanGreat Britain232Digital Music Players167Suppose that Japan and Great Britain do not trade with each other. Each has 100 hours of labor with which to producecell phones and digital music players, and the countries are currently producing amounts of each good shown in thetable below:JapanGreat BritainConsumption with 100 Hours of LaborCell Phones2,070160Digital Music Players160140Assume now that each country specializes in producing that good in which it has a comparative advantage. Further,assume for simplicity that one cell phone can be traded for one digital music player.If Japan trades 160 cell phones for 160 digital music players with Great Britain, then, with trade, Japan will be able toadditional cell phones (enter a numeric response usingconsume the same number of digital music players andan integer)

Cell Phones Consumed by Japan After Trade 1. Comparative Advantage: Due to its ability to create…

Answered: Suppose Japan and Great Britain produce…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below. United States Мexico Hamburgers (in tons) Tacos (in tons) Hamburgers (in tons) Tacos (in tons) 81 45 30 54 3 30 60 27 6 15 90 9 Which country has an absolute advantage in producing tacos?
Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day. Who has the absolute advantage in making floral arrangements? Who has the absolute advantage in making deliveries? Draw the comparative advantage table. Calculate the opportunity cost of each task for each student. Who has the comparative advantage in floral arrangements? Who has the comparative advantage in deliveries? Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and…
The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Denali. Both countries produce almonds and basil, each initially (i.e., before specialization and trade) producing 18 million pounds of almonds and 9 million pounds of basil, as indicated by the grey stars marked with the letter A. BASIL (Millions of pounds) 48 42 36 30 24 18 PPF ୯ 12 6 Cả 0 0 I I 6 Shenandoah 18,9 12 18 24 30 36 ALMONDS (Millions of pounds) 42 48 BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Denali 12 18 24 30 36 42 48 ALMONDS (Millions of pounds) ? Shenandoah has a comparative advantage in the production of , while Denali has a comparative advantage in the production of . Suppose that Shenandoah and Denali specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of basil. million pounds of almonds and
The following table shows the output of rice and cotton for Country A and Country B. Each country divides its resources equally between the production of rice and cotton. Based upon the law of comparative advantage, which of the following statement is correct? Units of the output of rice per year Units of the output of cotton per year 500 500 400 200 Country A Country B O a. Country B has a lower opportunity cost in producing rice. O b. Country A should produce both goods as the opportunity cost is the same. Country A has a higher opportunity cost in producing cotton. c. O d. Country B should produce both goods as they have an absolute advantage.
1. Gains from trade Consider two neighboring island countries called Dolorium and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Country Dolorium Contente Jeans Rye (Pairs per hour of labor) (Bushels per hour of labor) 20 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Dolorium produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.…
Morocco and Tunisia both have Mediterranean climates that are excellent for producing/harvesting green beans and tomatoes. In Morocco it takes two hours for each worker to harvest green beans and two hours to harvest a tomato. Tunisian workers need only one hour to harvest the tomatoes but four hours to harvest green beans. Assume there are only two workers, one in each country, and each works 40 hours a week. a. Identify which country has the absolute advantage in green beans and which country has the absolute advantage in tomatoes. b. Identify which country has comparative advantage in which product. c. Initially each country used ½ of the workers in producing green beans and tomatoes. If each country specializes based on comparative advantage find an exchange mechanism so that both gain from trade.
Bill and Melinda work for a firm that creates web pages and apps. The number of web page designs and apps each can produce in a week is given in the table below. Output per Week web pages designed apps created Bill 3 12 Melinda 2 4 Melinda has a comparative advantage in: Group of answer choices designing web pages creating apps both designing web pages and creating apps . neither designing web pages or in creating apps
3. Gains from trade Consider two neighboring island countries called Contente and Felicidad. They each have 4 million labor hours available per month that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans Corn Country (Pairs per hour of labor) (Bushels per hour of labor) Contente 6 12 Felicidad 4 16 Initially, suppose Contente uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce corn, while Felicidad uses 3 million hours of labor per month to produce jeans and 1 million hours per month to produce corn. Consequently, Contente produces 6 million pairs of jeans and 36 million bushels of corn, and Felicidad produces 12 million pairs of jeans and 16 million bushels of corn. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans…
Consider the following table that presents the labour requirements for production in the East and West (labour hours per unit of output) Food Clothing East 10 20 West 5 15 Answer the following questions. Does the East have an absolute advantage in clothing production? Does the West have an absolute advantage in clothing production? Does the East have an absolute advantage in food production? Does the West have an absolute advantage in clothing production? Explain. Does the East have a comparative advantage in clothing production? Does the West have a comparativeadvantage in clothing production? Does the East have a comparative advantage in food production? Does the West have a comparative advantage in clothing production? Explain. In the West, what is the opportunity cost of producing one more unit of food? In the East, what is the opportunity cost of producing one more unit of food? Explain. Under free trade, where should East and West produce food and…
A bottle of wine can be produced in France with 2 labor hours, and in the United States with 4 labor hours. A pound of beef can be produced in France with 1 labor hour, and in the United States with ½ labor hour. Group of answer choices The United States has both a comparative and an absolute advantage in the production of beef. The United States has an absolute, but not a comparative advantage in the production of beef. France has an absolute advantage in the production of beef. France has a comparative advantage in the production of beef.
Consider two neighboring island countries, Charisma and Fiatstan. Each has 72,000 labor hours available per week that it can use to produce corn, jeans, or a combination of both. The following table shows the amount of labor hours required to produce 1 bushel of com or 1 pair of jeans. Corn Jeans Country (Labor hours per bushel) (Labor hours per pair) Charisma 80 16 Fiatstan 24 12 has an absolute advantage in the production of corn, and has an absolute advantage in the production of jeans. Initially, suppose Charisma uses 54,000 hours of labor per week to produce corn and 18,000 hours per week to produce jeans, while Fiatstan uses 18,000 hours of labor per week to produce corn and 54,000 hours per week to produce jeans. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of corn and jeans it produces. Charisma's opportunity cost of producing 1 bushel of corn is of jeans, and Fiatstan's…
96 FL If Honduras and Guatemala each specialize in producing the good in which they have a comparative advantage and then trade with one another original PPF. O both countries would end up on a point to the right of their O both countries would end up at a point to the left of their one country would remain on its original PPF, while the other country would end up on a point to the right of its O both countries would end up on a different point on their Unit 7- Chapter 1...xlsx Unit 7- Chapter 1..xlsx O Topic 2 (2).docx O Topic 2 (1).docx 11:09 PM 73°F SUI prt sc delete f12 pus backspace -> unu Bock enter pause T shift alt ctrl

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