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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A small island nation of Gondwana can produce either 40 Apple iPhones (Apple for short) or 80 Samsung Galaxy phones (Samsung for short) every hour. A small island nation of Pandea can produce 75 Apple or 100 Samsung phones every hour. Without trade, each island nation consumes everything it produces. Assume that labor is the only resource they need on each island. If they decide to trade, transportation cost is zero. After 10 hours of work right now, Gondwana produces 200 Apple and 400 Samsung phones, Pandea produces 375 Apple and 500 Samsung phones. (a) Who if any has a comparative advantage in Apple iPhones? Who if any has a comparative advantage in Samsung Galaxy phones? (b) Is it possible for both Gondwana and Pandea to improve their consumption levels in one or both products, without decreasing consumption in any of the products? If no, explain why; if yes, give an example of production schedule and trade flows that would be mutually beneficial. (c) Give a range of prices of…
Suppose that Bob and Jimmy both have 10 hours of time that they can use to do one of two things: make pasta or make hamburgers. Bob can make 15 hamburgers in one hour and 3 plates of pasta in one hour. Jimmy can make 8 hamburgers in one hour and 2 plates of pasta in one hour. Who has comparative in the production of hamburgers? Who has comparative advantage in the production of pasta? If Bob and Jimmy trade, who should specialize in producing hamburgers and who should specialize in producing pancakes? Give an example of terms of trade at which mutually beneficial trade would be possible between Bob and Jimmy.
The countries of Sanaton and Microtania each produce two goods: Airplanes and Computers. The table below lists the opportunity costs associated with producing each good, for each country. Country Opportunity cost of producing 1 Airplanes Opportunity cost of producing 1 Computers Sanaton 4 Computers 0.25 Airplanes 2 Airplanes Microtania 0.5 Computers Currently, Sanaton does not trade with Microtania, and on its own produces 19 Airplanes and 24 Computers. On their own, Microtania produces 30 Airplanes and 35 Computers. Calculate total world supply: Airplanes: → Computers: If Sanaton decided to change its production of Airplanes by -2, calculate the change in the production of Computers: If Microtania changed its production of Airplanes by 8, calculate the change in production of Computers: A
Use the information in the table below to answer the following question: Which of the following is true? per unit of Labor: U.S Production Argentina 20 Whe at 300 Beef 100 20 a) The United States has an absolute advantage in the production of Wheat. O b) The United States does not have an absolute advantage in any commodity. c) Argentina has an absolute advantage in the production of Wheat. d) Argentina has an absolute advantage in the production of Beef.
Assume that Germany has 1200 units of labor available and it can produce two goods: apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. France has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. a) Graph both countries' PPF. Clearly state which trade theory you are using and explain the reason. Note that the shape of the production possibility frontier depends on the theory. b) Show relative autarky price in Germany and France country. c) Which country has a comparative advantage in the production of apple? Why?
The following table shows how many tonnes of dairy products and beef products can be produced in Country 1 and Country 2 with one unit of equivalent resources. Country 1 Country 2 Dairy Products (tonnes) 15 15 Beef Products (tonnes) 5 25 ..... a. Which country has an absolute advantage in dairy products? In beef products? Explain. Whoever is able to produce absolute advantage of producing that product. advantage in dairy production. production. with the same amount of resources has the has the absolute has the absolute advantage in beef A *****
***Please look at the screenshot for graphs*** Fill in the charts below with values based on the two Production Possibilities Frontiers above. Motor Vehicle Production in the United States (in millions) Cars Trucks 0 4 0 Motor Vehicle Production in Mexico (in millions) Cars Trucks 0 2 0 Which country has the absolute advantage in producing cars? Which country has the absolute advantage in producing trucks? Which country has the comparative advantage in producing cars? Which country has the comparative advantage in producing trucks? Should these two countries trade? Why or Why not?
Please fill in the boxes below, and verify the top is right
Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Cheese (Pounds) 16 Wine (Bottles) Cheese (Pounds) 12 8. 4. 25 20 15 2 3 3 4 10 4 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. O B. France has a comparative advantage producing wine and cheese. OC. Germany has a comparative advantage producing wine and cheese. -OD. Neither has a comparative advantage producing wine or cheese. OE. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. Suppose that France is currently producing 1 bottle of wine and 12 pounds of cheese and Germany is currently producing 3 bottles of wine and 10 pounds of cheese. Then, assume instead that France and…
COFFEE (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF 1 Maldonia 36 30 POTATOES (Millions of pounds) 06 12 18 24 42 48 COFFEE (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF 1 0 6 Lamponia 18 42 12 24 30 36 POTATOES (Millions of pounds) 48 Consider the above two graphs which represent production possibilities. What are the comparative advantages? Maldonia has a comparative advantage in potatoes and Lamponia has a comparative advantage in coffee Maldonia has a comparative advantage in both goods O Lamponia has a comparative advantage in both goods O Maldonia has a comparative advantage in coffee adn Lamponia has a comparative advantage in potatoes
Question 28 The table shows the maximum quantity of cars or motorcycles that can be produced by two countries, X and Y, using equal amounts of resources. Motorcycles Cars 10 60 20 80 Based on the data in the table, which of the following is true? A B D Country X Country Y E Country X has a comparative advantage in producing cars. Country Y has a comparative advantage in producing cars. Country X has an absolute advantage in producing cars. Country X has an absolute advantage in producing motorcycles. Country Y has a comparative advantage in producing motorcycles.
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