The figure shows how much a worker can produce in one day. Australia should: Figure 3-1 Food Electronics Australia 10 Korea 8 2 a) specialize in electronics production, export electronics, and import food. b) produce neither good because it has an absolute disadvantage in the productior both goods

The figure shows how much a worker can produce in one day. Australia should: Figure 3-1 Food Electronics Australia 10 Korea 8 2 a) specialize in electronics production, export electronics, and import food. b) produce neither good because it has an absolute disadvantage in the productior both goods

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

Labour hours needed to make 1 unit: Amount produced in 24 hours: Cars Airplanes Cars Airplanes Canada 30 120 54 18 Japan 40 160 60 15 In the above table, if Canada and Japan trade based on the principle of comparative advantage, what could Japan gain from exporting a car? Question 11 options: a maximum of 3 airplanes a maximum of 1/6 airplane a maximum of 1/3 airplane a maximum of 1/4 airplane
According to the resource-based view, there are economic gains from international trade because some firms in one nation generate exports that are valuable, unique, and hard to imitate that firms from other nations find it beneficial to import. O True O False
Please no written by hand
The following table shows the output of rice and cotton for Country A and Country B. Each country divides its resources equally between the production of rice and cotton. Based upon the law of comparative advantage, which of the following statement is correct? Units of the output of rice per year Units of the output of cotton per year 500 500 400 200 Country A Country B O a. Country B has a lower opportunity cost in producing rice. O b. Country A should produce both goods as the opportunity cost is the same. Country A has a higher opportunity cost in producing cotton. c. O d. Country B should produce both goods as they have an absolute advantage.
Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in bananas production it is 2. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in bananas production it is 1. e) Show that how both Home and Foreign countries gain from trade. use PPF graph.
Consider the following table that presents the labour requirements for production in the East and West (labour hours per unit of output) Food Clothing East 10 20 West 5 15 Answer the following questions. Does the East have an absolute advantage in clothing production? Does the West have an absolute advantage in clothing production? Does the East have an absolute advantage in food production? Does the West have an absolute advantage in clothing production? Explain. Does the East have a comparative advantage in clothing production? Does the West have a comparativeadvantage in clothing production? Does the East have a comparative advantage in food production? Does the West have a comparative advantage in clothing production? Explain. In the West, what is the opportunity cost of producing one more unit of food? In the East, what is the opportunity cost of producing one more unit of food? Explain. Under free trade, where should East and West produce food and…
The graph below shows a small country that produces wine, with no international trade, existing in a state of autarky. 0 Price (dollars per barrel) 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 Market for Wine S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Quantity (millions of barrels) Tools Pworld i Q₁ -8 Q₁ a. What is the initial market price and quantity of wine traded in equilibrium? Ре Pe: $ per barrel Qe million barrels Now suppose this small country opens its market to international trade. Suppose the world price of wine is $60 per barrel. b. Use the graph above to indicate the world price, the new domestic quantity supplied (Q), and the new domestic quantity demanded (Qd). Instructions: Use the tool provided "Pworld" to draw a horizontal world price such that the first point touches the vertical axis. Use the tools provided "Qs" and "Qd" to indicate the domestic quantity supplied and domestic quantity demanded. million barrels of wine. c. At the world price of $60 per barrel, this…
A bottle of wine can be produced in France with 2 labor hours, and in the United States with 4 labor hours. A pound of beef can be produced in France with 1 labor hour, and in the United States with ½ labor hour. Group of answer choices The United States has both a comparative and an absolute advantage in the production of beef. The United States has an absolute, but not a comparative advantage in the production of beef. France has an absolute advantage in the production of beef. France has a comparative advantage in the production of beef.
3. Gains from trade Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Country Rye Jeans (Bushels per hour of labor) (Pairs per hour of labor) Bellissima 8 16 Dolorium 5 20 Initially, suppose Bellissima uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Dolorium uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Bellissima produces 8 million bushels of rye and 48 million pairs of jeans, and Dolorium produces 15 million bushels of rye and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country…
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.
The following production possibilities schedule shows the quantities of buckwheat and corn that can be produced in the United States and Canada with one unit of equivalent resources. Buckwheat Corn (bushels) (bushels) United States 64 14 Canada 24 For both countries to be able to gain from trade, Canada would not gain by producing and exporting corn and importing buckwheat unless it received O A. any quantity of buckwheat. O B. more than 4 bushels of buckwheat per bushel of corn. OC. more than 6 bushels of corn. O D. more than 4.57 bushels of buckwheat per bushel of con.