Q22MCQ Suppose that Austria and Belgium have the unit labour requirements for producing steel and brooms shownin the table below.Unit labour requirementsSteelBroomsThen:a) Belgium has a comparative advantage in brooms.b) Austria has a comparative advantage in brooms.c) Austria has an absolute advantage in brooms.d) Belgium has an absolute advantage in steel.AustriaBelgium3821

Step 1:Comparative refers to the process of assessing or evaluating two or more things in relation…

Answered: Suppose that Austria and Belgium have…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 4CQQ

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Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
None
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Suppose that Austria and Belgium have the unit labor requirements for producing steel and brooms shown in the table at the below. Then Labor hours per Output Austria Belgium 1 Steel 3 1 Broom 3 Belgium has a comparative advantage in steel. Austria has a comparative advantage in steel. Belgium has a comparative advantage in broom. Austria has an absolute advantage in broom.
In theory of comparative advantage, which statement is correct O a a country should produce all product in which it is efficient O b. a country should produce all goods to cater its domestic demand Oo a country should only produce those goods in which it is more efficient than other goods Kd a country should produce all products it can export
24 of 38 For each hour worked, a U.S. worker can produce 4 loaves of bread, or 2 tons of steel. Canadian workers can produce 2 loaves of bread, or 1 ton of steel per hour. The information indicates that: O A. Canada has comparative advantage in steel, and the U.S. has comparative advantage in bread. O B. neither country has comparative advantage in steel or bread. O C. Canada has comparative advantage in bread, and the U.S. has comparative advantage in steel. O D. the U.S. has comparative advantage in both steel and bread. Unsure
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QUESTION 22 20 EN 50 PPF 40 30 20 10 50 10 20 cloth 22. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the absolute advantage in wine? Oa) Portugal b) England 70 60 50 40 30 20 10 "T Oc) Both Ⓒd) Nether Ⓒ) Can't tel QUESTION 23 80 70 60 50 England 70 80 50 PPF PP 40 KE 30. 20 10 30 40 50 60 10 30 30 cloth 23. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the absolute advantage in cloth? 40 30 20 10 10 O a) Portugal b) England Oc) Both Ⓒd) Nether Ⓒe) Cannot tell England QUESTION 24 60 50 40 30 20 10 70 KN 50 PPI 40 30 20 10. 50 60 10 cloth cloth 24. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the comparative advantage in cloth? O a) Portugal b) England 10 30…
According to the Infant Industry Argument Poor countries can foster economic development by using tariffs to protect new firms while they learn to become more productive. O Countries that allow children to work have an unfair advantage in international trade. O Costs of young firms are low because their workers lack seniority, and this contributes to comparative advantage. O When technological change creates a new product, it is the innovating country that is likely to be able to export it.
If United States has a comparative advantage over Japan in the production of cars, then. O the opportunity cost of producing cars in United States is lower than in Japan. the opportunity cost of producing cars in United States is higher than in Japan. O only United States will gain from specialization and trade in cars between United States and Japan. O there are no gains from specialization and trade in cars between United States and Japan.

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