Table 3. This table provides Production Possibility Frontier information for England and France. Country England France Good W 10 20 Good Z 15 40 Refer to Table 3. Which of the following statements is true? England has an absolute advantage with respect to both goods. England has an absolute advantage with respect to Good W and France has an absolute advantage with respect to Good Z. France has an absolute advantage with respect to both goods. England has an absolute advantage with respect to Good Z and France has an absolute advantage with respect to Good W.

Table 3. This table provides Production Possibility Frontier information for England and France. Country England France Good W 10 20 Good Z 15 40 Refer to Table 3. Which of the following statements is true? England has an absolute advantage with respect to both goods. England has an absolute advantage with respect to Good W and France has an absolute advantage with respect to Good Z. France has an absolute advantage with respect to both goods. England has an absolute advantage with respect to Good Z and France has an absolute advantage with respect to Good W.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to the figure regarding countries A and B. If each country allocated half of its labor force to the production of each good before trade and then each specialize in their comparative advantage and allocate 75 percent of its labor force to the production of that good, world production of good X would change by -- and production of good Y by- Good Y 100 Country B Good X 80 Country A 40 100
When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Maldonia and Desonia. Both countries produce grain and tea, each initially (i.e., before specialization and trade) producing 18 million pounds of grain and 9 million pounds of tea, as indicated by the grey stars marked with the letter A. Maldonia Desonia 48 48 42 42 36 36 PPF 30 24 18 PPF 18 12 12 9. 12 18 24 30 36 42 48 0. 6. 12 18 24 30 36 42 48 GRAIN (Millions of pounds) GRAIN (Millions of pounds) Maldonia has a comparative advantage in the production of while Desonia has a comparative advantage in the production of Suppose that Maldonia and Desonia specialize in the production of the goods in which each has a TEA (Millions of pounds) 24 30 TEA (Millions…
9
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