Suppose that without trade the workers in each country spend half their time producing each good.Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) toIndicate this production and consumption point for China.If these countries were open to trade,IS (MIGHS)True or False: There are no longer gains from trade.TrueThe price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countriesbetter off isshirts per computer, and the lowest price that makes both countries better off isshirts per computer.Suppose that China catches up with American productivity so that a Chinese worker can produce 60 shirts or 30 computers.FalseCopyright Noticeswould export shirts andTerms of UseJAN24• Privacy NoticeGrade It Nowwould benefit from trade.Security NoticeAccessibilitySave & ContinueContinuewithout saving(A) 8. Problems and Applications Q8Suppose that in a year an American worker can produce 60 shirts or 30 computers and a Chinese worker can produce 60 shirts or 12 computers.There are 1 million workers in each country.Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) tograph the production possibilities frontier for China.Quantity of Computers (Millions)30272421181512963لا0010207030605040Quantity of Shirts (Millions)80 9010010U.S. PPF-4China PPFU.S. without TradeChina without Trade

Production Possibility curve of various feasible pairings of two items is what an economy can…

Suppose that without trade the workers in each country spend half their time producing each good. Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to Indicate this production and consumption point for China. If these countries were open to trade, would export shirts and The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is shirts per computer, and the lowest price that makes both countries better off is shirts per computer. Suppose that China catches up with American productivity so that a Chinese worker can produce 60 shirts or 30 computers. True or False: There are no longer gains from trade. True False Grade It Now would benefit from trade. Save & Continue Continue without saving

Suppose that without trade the workers in each country spend half their time producing each good. Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to Indicate this production and consumption point for China. If these countries were open to trade, would export shirts and The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is shirts per computer, and the lowest price that makes both countries better off is shirts per computer. Suppose that China catches up with American productivity so that a Chinese worker can produce 60 shirts or 30 computers. True or False: There are no longer gains from trade. True False Grade It Now would benefit from trade. Save & Continue Continue without saving

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that there are two countries, Country A, which earns $5,000 per capita GDP, and Country B, which earns $50,000 per capita GDP. Using Country A and Country B and two products that you choose, thoroughly and clearly explain an example of how these countries can gain from trade pursuant to the doctrine of Comparative Advantage.
Finally, Canada and Australia are both English-speaking countries with not-too dissimilar population sizes. However, Canada’s trade is twice as large as that of Australia’s. to what extent, does comparative advantage help explain this?
Happyland can produce 40 tones of marshmallows or 20 tones of chocolate in a year. Friendshipland can produce 80 tones of marshmallows or 40 tones of chocolate in a year. Can these countries benefit from trade with each other based on specialization and comparative advantage? Yes No
The U.S. can produce 100 pounds of beef or 10 cars; in contrast Germany can produce 40 pounds of beef or 30 cars. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing cars? What is the opportunity cost of producing one pound of beef in the U.S. What is the opportunity cost of producing one pound of beef in Germany?
Here is what Sweden and Canada can produce: Country Tons of Food Tons of Metal Sweden 40,000 XXXXX Canada XXXXX 1,000 Sweden has a comparative advantage in metal The price of metal will be between 10 and 20 food, if these countries trade. How much metal can Sweden produce? If you think the answer is 17,000, then write 17000, not 17,000.
Using the Heckscher-Ohlin trade model, we would expect that in a nation that is labor abundant that exports potatoes, an increase in the quantity of labor would... A) Worsen the terms of trade for that nation B) Improve the terms of trade for that nation C) Raise wages in that nation D) Both B and C
It has been shown that the US has a comparative advantage in capital-intensive goods while China has a comparative advantage in labour-intensive goods. Suppose as a result of trade the US's economy is going to grow by 30% and that of China by 40%. Based on this information, which of the following statements is correct? a) The US has the stronger bargaining power in the determination of the relative price after trade. b) In the US, the employers are better off while the workers are worse off as a result of trade. c) Specialization means that China will produce all the capital-intensive goods. d) China has the stronger bargaining power in the determination of the relative price after trade.
If the United States produces 8 automobiles and Canada produces 2 automobiles and the United States produces 8 units of lumber and Canada produces 4 units of lumber, should the U. S. trade with Canada? If so, what should be imported and what should be exported?
Suppose that Croatia and Wales both produce beets and wheat. Croatia's opportunity cost of producing a bushel of wheat is 4 bushels of beets while Wales's opportunity cost of producing a bushel of wheat is 11 bushels of beets. By comparing the opportunity cost of producing wheat in the two countries, you can tell that production of wheat and has a comparative advantage in the production of beets. Suppose that Croatia and Wales consider trading wheat and beets with each other. Croatia can gain from specialization and trade as long as it receives more than ▼ of beets for each bushel of wheat it exports to Wales. Similarly, Wales can gain from trade as long as it receives more of wheat for each bushel of beets it exports to Croatia. 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 wheat in terms of beets) would allow both Wales and Croatia to gain from trade? Check all that apply. ☐ 6 bushels of…
If a country closes off to trade and notices that the number of firms in an industry doubles in size, what economic theory would help us explain this phenomenon? A. Stolper-Samuelson. B. Melitz. C. Ricardian. D. Cournot.
A friend tells you the following: “Free trade sounds good, but a country like Honduras doesn’t have any comparative advantage compared to the United States. Therefore, trade with us will exploit them and make their economic situation worse.” Explain to your friend the error in his thinking.