Suppose that Portugal and Sweden both produce rye and wine. Portugal's opportunity cost of producing a bottle of wine is 5 bushels of rye while Sweden's opportunity cost of producing a bottle of wine is 10 bushels of rye. has a comparative advantage in the By comparing the opportunity cost of producing wine in the two countries, you can tell that production of wine and has a comparative advantage in the production of rye. Suppose that Portugal and Sweden consider trading wine and rye with each other. Portugal can gain from specialization and trade as long as it receit more than of rye for each bottle of wine it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more of wine for each bushel of rye it exports to Portugal. than Based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of rye) would allow both Sweden an Portugal to gain from trade? Check all that apply. 6 bushels of rye per bottle of wine

Suppose that Portugal and Sweden both produce rye and wine. Portugal's opportunity cost of producing a bottle of wine is 5 bushels of rye while Sweden's opportunity cost of producing a bottle of wine is 10 bushels of rye. has a comparative advantage in the By comparing the opportunity cost of producing wine in the two countries, you can tell that production of wine and has a comparative advantage in the production of rye. Suppose that Portugal and Sweden consider trading wine and rye with each other. Portugal can gain from specialization and trade as long as it receit more than of rye for each bottle of wine it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more of wine for each bushel of rye it exports to Portugal. than Based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of rye) would allow both Sweden an Portugal to gain from trade? Check all that apply. 6 bushels of rye per bottle of wine

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If each country specializes in the good in which it has a comparative advantage,....will gain from that trade because
56 56 48 48 PPF 40 40 32 32 24 PPF 24 16 16 -- -- -- - 8 16 24 32 40 48 56 64 16 24 32 40 48 56 84 GRAIN (Millions of pounds) GRAIN (Millions of pounds) Maldonia has a comparative advantage in the production of while Lamponia has a comparative advantage in the production of Suppose that Maldonia and Lamponia 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 sugar and million pounds of grain. Suppose that Maldonia ánd Lamponia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 24 million pounds of grain for 24 million pounds of sugar. This ratio of goods is known as the price of trade between Maldonia and Lamponia. W SUGAR (MIlons of pounds) SUGAR (MIlions of pounds)
The table suggests that Italy has an absolute advantage over Romania in (footweat, neither product, both products, beef) and a comparative advantage in (footweat, neither product, both products, beef). The table suggests that wages in Italy are (the sameas, higher than, lower than) in Romania. As a result of Romania’s joining the EU, employment in Romania is likely to fall in (the footwear industry, neither industry, both industries, the beef industry) . True or False: The degree of openness of the Romanian economy will not influence the mix of jobs. a)True b)False
Suppose each worker in Home can produce 12 wheat or 4 TVs. Assume that Home has 10 workers. Suppose each worker in Foreign can produce 8 wheat or 2 TVs. Assume that Foreign has 20 workers. a. What is the no-trade relative price of TVs in Home and Foreign respectively?b. Which country has an absolute advantage in the production of wheat? Whichcountry has a comparative advantage in the production of wheat?c. Use two graphs (one for Home and one for Foreign) to display productionpossibilities along with indifference curves and label no-trade equilibria and a trade equilibrium constructed by you. (Assume that positive quantities of both goods are consumed in both countries in all equilibria). Pick your own numbers for the relative price in the trade equilibrium and for quantities consumed in the trade and no-trade equilibria for both countries.d. What is the real wage in units of wheat in Home in the no-trade and in your proposed trade equilibrium?e. Calculate the gains from trade for Home…
Freedonia has a comparative advantage in the production of (grain, tea, neither grain nor tea, both grain and tea), while Desonia has a comparative advantage in the production of (grain, tea, neither grain nor tea, both grain and tea). If each fully specializes that is, produces only the good for which each has a comparative advantage, the most the two countries can produce is ( )million pounds of grain and ( )million pounds of tea. As you did for Freedonia, use the green line (triangle symbol) to plot the trading possibilities line (TPL) for Desonia. Then place the black point (plus symbol) on the trading possibilities line to indicate Desonia’s consumption after specialization and trade. True or False: Without engaging in international trade, Freedonia and Desonia would not have been able to consume at the after-trade consumption bundles. (Hint: Base your answer to this question on the answers you previously entered on this page.) a) True b) False
Which country has comparative advantage in the production of food? Explain. See attached.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces pistachios will produce. million pounds per day and the country that produces chinos will produce million pairs per day.
Suppose that Slovenia and Slovakia both produce sunflowers and liquor. Slovenia's opportunity cost of producing a case of liquor is 6 bushels of sunflowers while Slovakia's opportunity cost of producing a case of liquor is 11 bushels of sunflowers. By comparing the opportunity cost of producing liquor in the two countries, you can tell that production of liquor and has a comparative advantage in the production of sunflowers. Suppose that Slovenia and Slovakia consider trading liquor and sunflowers with each other. Slovenia can gain from specialization and trade as long as it receives more than of sunflowers for each case of liquor it exports to Slovakia. Similarly, Slovakia can gain from trade as long as of liquor for each bushel of sunflowers it exports to Slovenia. it receives more than has a comparative advantage in the Based on your answer to the last question, which of the following prices of trade (that is, price of liquor in terms of sunflowers) would allow both Slovakia and…
Need help
Suppose that Slovenia and Wales both produce olive oil and broccoli. Slovenia's opportunity cost of producing a bushel of broccoli is 4 crates of olive oil while Wales's opportunity cost of producing a bushel of broccoli is 12 crates of olive oil. By comparing the opportunity cost of producing broccoli in the two countries, you can tell that production of broccoli and has a comparative advantage in the production of olive oil. has a comparative advantage in the Suppose that Slovenia and Wales consider trading broccoli and olive oil with each other. Slovenia can gain from specialization and trade as long as it receives more than of olive oil for each bushel of broccoli it exports to Wales. Similarly, Wales can gain from trade as long as it of broccoli for each crate of olive oil it exports to Slovenia. receives more than Based on your answer to the last question, which of the following prices of trade (that is, price of broccoli in terms of olive oil) would allow both Wales and Slovenia…
Refer to Table 19.1. Mexico has Group of answer choices a comparative advantage but not an absolute advantage in orange production. an absolute advantage and a comparative advantage in orange production. a comparative advantage but not an absolute advantage in banana production. an absolute advantage and a comparative advantage in banana production.
Suppose that Spain and Switzerland both produce oil and cheese. Spain's opportunity cost of producing a pound of cheese is 4 barrels of oil while Switzerland's opportunity cost of producing a pound of cheese is 10 barrels of oil. By comparing the opportunity cost of producing cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and has a comparative advantage in the production of oil. Suppose that Spain and Switzerland consider trading cheese and oil with each other. Spain can gain from specialization and trade as long as it receives more than of oil for each pound of cheese it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than of cheese for each barrel of oil it exports to Spain. Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of oil) would allow both Switzerland and Spain to gain from…