Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, thenO A. Brazil will produce more timber after trade begins with Chile.O B. Brazil will completely specialize in computers once trade begins with Chile.OC. Chile will produce more timber after trade begins with Brazil.O D. Chile will produce more computers after trade begins with Brazil.Suppose that before trade takes place. the United States is at point A on its PPC where it produces 20 loaves of bread and 20 tons of aluminum.Once trade becomes possible, the price of a ton of aluminum is two loaves of bread. In response. the United States moves along its PPC to point B where itproduces 30 tons of aluminum and 10 loaves of breed.The United States' PPCUsing the line drawing tool, draw the trade line facing the Uniled Slates. Properly label your line.30Carefully follow the instructions above and only draw the reguired abjectAccording to your graph, compared to its pre-trade position, the United States iswith trade.A20-The determination made regarding the impact of trade upon the United States is evidenced by the fact that with trade, the U.S. can consume anywhere along theB10-102030aluminumSuppose again that furniture production is more capital-intensive relative to clothing production, which is more labor-intensive. If the relative price of furniture to clothing rises, this willO A. raise the income of both labor and capital owners.O B. raise the income of capital owners.O C. raise the income of labor owners.O D. lower the incomes of both labor and capital owners.Suppose that the United Kingdom and Canada have the factor endowments in the table to the right. Suppose further that the production requirements for a unit ofcement are 2 machines and 8 workers, and the requirement for a unit of wool is 1 machine and 7 workers.United KingdomCanada20 machines50 workersCapital80 machines160 workersAfter trade commences between the United Kingdom and Canada, it will be the case that the return to capital increases inV and the returnLaborto labor increases inIn the specific factors model, a country's comparative advantage is determined byA. the country's factor endowments relative to its trading partners.B. relative opportunity costs across countries, as in the Ricardian trade model.OC. industry research and development activity which helps differentiate firms into specific industries.O D. relative industry size and capacity in each specific industry.

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Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then O A. Brazil will produce more timber after trade begins with Chile. O B. Brazil will completely specialize in computers once trade begins with Chile. OC. Chile will produce more timber after trade begins with Brazil. O D. Chile will produce more computers after trade begins with Brazil.

Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then O A. Brazil will produce more timber after trade begins with Chile. O B. Brazil will completely specialize in computers once trade begins with Chile. OC. Chile will produce more timber after trade begins with Brazil. O D. Chile will produce more computers after trade begins with Brazil.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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