Question 28The table shows the maximum quantity of cars or motorcycles that can be produced by two countries, X and Y, using equal amounts of resources.MotorcyclesCars10602080Based on the data in the table, which of the following is true?ABDCountry XCountry YECountry X has a comparative advantage in producing cars.Country Y has a comparative advantage in producing cars.Country X has an absolute advantage in producing cars.Country X has an absolute advantage in producing motorcycles.Country Y has a comparative advantage in producing motorcycles.

The exchange of services and goods between nations is referred to as international trade. It allows…

The table shows the maximum quantity of cars or motorcycles that can be produced by two countries, X and Y, using equal amounts of resources. Motorcycles Cars 10 60 20 80 Based on the data in the table, which of the following is true? A Country X Country Y B Country X has a comparative advantage in producing cars. Country Y has a comparative advantage in producing cars. Country X has an absolute advantage in producing cars.

The table shows the maximum quantity of cars or motorcycles that can be produced by two countries, X and Y, using equal amounts of resources. Motorcycles Cars 10 60 20 80 Based on the data in the table, which of the following is true? A Country X Country Y B Country X has a comparative advantage in producing cars. Country Y has a comparative advantage in producing cars. Country X has an absolute advantage in producing cars.

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

Trade need not be the result of comparative advantage but it can be a result of economies of scale. Discuss.
Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a brazillian can produce 150 clothes or 10 cars. 1. Who has the absolute advantage in production if clothes 2. Who has the absolute advantage in the production of cars 3. Who has a comparative advantage in the production of clothes 4. Who has a comparative advantage in the production of cars 5. What is the opportunity cost for cars
If a country produces more food and electronics than another country does it have a comparative advantage?
Suppose that Country A can produce 6060 bags of sugar or 3030 bags of flour per worker hour. Country B can produce 4040 bags of sugar or 1010 bags of flour per worker hour. Assume that there is 100%100% specialization, and each country has 55 worker hours.If each country specializes in its comparative advantage, calculate the quantity of the good that Country B should produce.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week.
WORKING WITH NUMBERS AND GRAPHS 1 Using the data in the accompanying table, answer the Points on Production Possibilities following questions: Canada Italy a. For which good does Canada have a comparative advantage? b. For which good does Italy have a comparative advantage? Frontier Good X Good Y Good X GoodY 150 90 100 25 60 60 C 50 50 30 120 c. What might be a set of favorable terms of trade for the 75 180 two countries? d. Prove that both countries would be better off in the specialization-trade case than in the no-specialization-no-trade case.
If each country specializes in the good in which it has a comparative advantage,....will gain from that trade because
The countries of Sanaton and Microtania each produce two goods: Airplanes and Computers. The table below lists the opportunity costs associated with producing each good, for each country. Country Opportunity cost of producing 1 Airplanes Opportunity cost of producing 1 Computers Sanaton 4 Computers 0.25 Airplanes 2 Airplanes Microtania 0.5 Computers Currently, Sanaton does not trade with Microtania, and on its own produces 19 Airplanes and 24 Computers. On their own, Microtania produces 30 Airplanes and 35 Computers. Calculate total world supply: Airplanes: → Computers: If Sanaton decided to change its production of Airplanes by -2, calculate the change in the production of Computers: If Microtania changed its production of Airplanes by 8, calculate the change in production of Computers: A
The following table shows how many tonnes of dairy products and beef products can be produced in Country 1 and Country 2 with one unit of equivalent resources. Country 1 Country 2 Dairy Products (tonnes) 15 15 Beef Products (tonnes) 5 25 ..... a. Which country has an absolute advantage in dairy products? In beef products? Explain. Whoever is able to produce absolute advantage of producing that product. advantage in dairy production. production. with the same amount of resources has the has the absolute has the absolute advantage in beef A *****
LENTILS (Millions of pounds) 80 70 8 60 50 40 30 20 10 + 0 0 PPF 10 Shenandoah 20 30 40 50 60 PEAS (Millions of pounds) 70 80 (?) LENTILS (Millions of pounds) 80 70 60 50 40 30 PPF 20 10 0 0 T 10 Denali 40 20 30 50 60 PEAS (Millions of pounds) 70 80 (?) Shenandoah has a comparative advantage in the production of , while Denali has a comparative advantage in the production of . Suppose that Shenandoah and Denali specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of peas. million pounds of lentils and million pounds of Suppose that Shenandoah and Denali agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 20 million pounds of peas for 20 million pounds of lentils. This ratio of goods is known as the price of trade between Shenandoah and Denali. The following graph shows the same PPF for Shenandoah…
Explain the difference between absolute and comparative advantage in relation to trade and give an example of each. How does the type of advantage influence trade between different countries? Why is trade beneficial? What happens if a government imposes tariffs on imported products?
Which country has comparative advantage in the production of food? Explain. See attached.