Before specialization, Italy produced 6 million tonsof olives and 10 million tons of tea.After specialization, Italy will produceBefore specialization, India produced 2 million tonsof olives and 30 million tons of tea.After specialization, India will producemillion tons of olives andtea.million tons ofmillion tons of olives andtea.million tons ofBefore trade, Italy consumed 6 million tons of olivesand 10 million tons of tea.After trade, Italy will consumetons of olives andmillionBefore trade, India consumed 2 million tons ofolives and 30 million tons of tea.After trade, India will consumemillion tonsmillion tons of tea.of olives andmillion tons of tea. The accompanying graphs show the production possibilities frontiers (PPFS) for Italy and India for their domestic production ofolives and tea. Without trade, assume that each country is consuming olives and tea at point a.Italy120Olives (millions of tons)6+2PPF0 10203040Tea (millions of tons)India121010Olives (millions of tons)60420aPPF10 20 30 40 50 60Tea (millions of tons)

Answered: Image /qna-images/answer/690fc96c-6f0a-4974-af96-dbe553219cec.jpg

Answered: Before specialization, Italy produced 6…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...

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Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
The accompanying graphs show the production possibilities frontiers (PPFS) for Italy and India for their domestic production of olives and tea. Without trade, assume that each country is consuming olives and tea at point a. Use the information provided in the graphs to answer the following questions. Olives (millions of tons) Italy 12 10 8 60 2 a PPF 0 10 20 30 40 Tea (millions of tons) India 12 Olives (millions of tons) 4 6 Co 10 2 a 0 PPF 10 20 30 40 50 60 Tea (millions of tons)
30. If the Portuguese were to insist on consuming 90 bottles of wine, what does that imply for trade between these countries? There would be no trade. The Portuguese would be consuming beyond their production possibilities frontier. The English would benefit from producing their own wine. Both countries would benefit more. None of the above.
The following diagrams show the production possibilities frontiers (PPFS) for Armenia and Azerbaijan and their production of milk and razor trade. Which of the following statements is true when the two countries begin trading in razors and milk? Razors 15 10 5 Armenia 10 15 Milk (gallons) O Armenia will not trade with Azerbaijan O Armenia will export milk to Azerbaijan and import razors from Azerbaijan. O Armenia will export razors to Azerbaijan and import milk from Azerbaijan O Armenia will import razors and milk from Azerbaijan.. Razors 15 10 10 5 Azerbaijan 10 15 5 Milk (gallons)
Corn 60 60 80 O 120 United States 20 60 Peanuts Corn 60 Using the graph above, if Canada has a comparative advantage in corn, how much should they produce when they specialize in the production of corn? 20 Canada Peanuts
Suppose that in the United States, producing an aircraft takes 10,000 hours of labor and producing a shirttakes 2 hours of labor. In China, producing an aircrafttakes 40,000 hours of labor and producing a shirttakes 4 hours of labor. What will these nations trade?a. China will export aircraft, and the United Stateswill export shirts.b. China will export shirts, and the United States willexport aircraft.c. Both nations will export shirts.d. There are no gains from trade in this situation.
Suppose that in a day a worker in the United States can produce 10 bushels of corn or 2 shirts. In Russia a worker can produce 9 bushels of corn or 3 shirts in one day. Which of the following would benefit both the United States and Russia if trade occurred? 1 shirt for 6 bushels of corn -----1 shirt for 4 bushels of corn 1 shirt for 1 bushel of corn 1 shirt for 2 bushels of corn Im doing review for a class and I realize that 1 shirt and for bushels are the correct answer I am just confused on what formula would apply to figue this out
9
In the following table, select the amount of each good that each country exports and Imports In the boxes across the row marked "Trade Action," and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of jeans was 17 million palrs per week, and the total production of rye was 46 million bushels per week. Because of specialization, the total production of jeans has increased by 3 million pairs per week, and the total production of rye has increased by 18 million bushels per week. Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade. Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption"). Dolorium Arcadia Jeans Rye…
Refer to Table 19.1. Guatemala has Group of answer choices a comparative advantage in orange production. an absolute advantage in orange production. a comparative advantage in banana production. an absolute advantage in banana production.
Refer to the table below. If Canada and Japan based their trade on comparative advantage, what would be the MAXIMUM number of airplanes that Canada could GAIN if it exports one car? COPYRIGHTED MATERIAL. NOT TO BE SHARED. Hours needed to make one unit: Cars Canada 40 Japan 50 1/12 of a plane 1/4 of a plane 1/3 of a plane 1 plane Airplanes 160 150 Amount produced in 2400 hours: Cars Airplanes 60 48 15 16

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