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The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization rade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A B D E F 120,000 96,000 72,000 48,000 24,000 Apparel Chemicals(tons) 24 48 72 96 120 Customize and control Google Chrome U.S. Production Possibilities Product R S T V W 24,000 8,000 Apparel Chemicals(tons) 40,000 32,000 16,0000 16 32 48 64 80 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) ♥ If so, what product should each produce? China should produce (Click to select) ♥ The United States should produce [(Click to select) ♥ p. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals. Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 16,000 units of apparel are exchanged for 24 tons of chemicals. What are the gains from specialization and trade for each nation? |(Click to select) has a gain of units of apparel. (Click to select) v has a gain of ton(s) of chemicals.

The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization rade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A B D E F 120,000 96,000 72,000 48,000 24,000 Apparel Chemicals(tons) 24 48 72 96 120 Customize and control Google Chrome U.S. Production Possibilities Product R S T V W 24,000 8,000 Apparel Chemicals(tons) 40,000 32,000 16,0000 16 32 48 64 80 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) ♥ If so, what product should each produce? China should produce (Click to select) ♥ The United States should produce [(Click to select) ♥ p. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals. Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 16,000 units of apparel are exchanged for 24 tons of chemicals. What are the gains from specialization and trade for each nation? |(Click to select) has a gain of units of apparel. (Click to select) v has a gain of ton(s) of chemicals.

Principles of Economics 2e
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 31P: Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil...
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The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A B D E F 120,000 48,000 Apparel Chemicals(tons) 96,000 72,000 24,000 24 48 72 96 120 Customize and control Google Chrome U.S. Production Possibilities Product R S T U V W Apparel Chemicals(tons) 40,000 32,000 24,000 16,0000 8,000 16 32 48 64 80 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) ♥ If so, what product should each produce? China should produce (Click to select) V The United States should produce (Click to select) V b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals. Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 16,000 units of apparel are exchanged for 24 tons of chemicals. What are the gains from specialization and trade for each nation? (Click to select) v has a gain of units of apparel. (Click to select) v has a gain of ton(s) of chemicals.
Transcribed Image Text:The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A B D E F 120,000 48,000 Apparel Chemicals(tons) 96,000 72,000 24,000 24 48 72 96 120 Customize and control Google Chrome U.S. Production Possibilities Product R S T U V W Apparel Chemicals(tons) 40,000 32,000 24,000 16,0000 8,000 16 32 48 64 80 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) ♥ If so, what product should each produce? China should produce (Click to select) V The United States should produce (Click to select) V b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals. Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 16,000 units of apparel are exchanged for 24 tons of chemicals. What are the gains from specialization and trade for each nation? (Click to select) v has a gain of units of apparel. (Click to select) v has a gain of ton(s) of chemicals.
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