The table suggests that Italy has an absolute advantage over Romania in (footweat, neither product, both products, beef) and a comparative advantage in (footweat, neither product, both products, beef).The table suggests that wages in Italy are (the sameas, higher than, lower than) in Romania.As a result of Romania’s joining the EU, employment in Romania is likely to fall in (the footwear industry, neither industry, both industries, the beef industry) .True or False: The degree of openness of the Romanian economy will not influence the mix of jobs.a)True b)False the footwear industryThe table suggests that Italy has an absolute advantage over Romania inhparative advantage inneither industryboth industriesThe table suggests that wages in Italy arein Romania.the beef industryAs a result of Romania's joining the EU, employment in Romania is likely to fall inTrue or False: The degree of openness of the Romanian economy will not influence the mix of jobs.TrueFalse 8. Comparative advantage and import competitionRomania recently joined the European Union (EU) and faces intense import competition from other EU members, such as Italy. Suppose you have thefollowing data on labor productivity for footwear and beef production in Romania and Italy. Assume that footwear and beef production are measured inconstant dollars reflecting the value of the products.Use the Ricardian model to analyze possible effects on each country's footwear and beef industries when answering the questions that follow.Sales per EmployeeFootwearВeefCountry (Dollars per year) (Dollars per year)Romania50,00040,000Italy84,00042,000The table suggests that Italy has an absolute advantage over Romania inand a comparative advantage infootwearThe table suggests that wages in Italy arein Romania. neither productboth productsAs a result of Romania's joining the EU, employment in Romania is likelybeefTrue or False: The degree of openness of the Romanian economy will not mmuence ne mix of jobs.O TrueO False

Absolute advantage: When a country has absolute superiority in producing a particular commodity…

Answered: The table suggests that Italy has an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table suggests that Italy has an absolute advantage over Romania in (footweat, neither product, both products, beef) and a comparative advantage in (footweat, neither product, both products, beef).

The table suggests that wages in Italy are (the sameas, higher than, lower than) in Romania.

As a result of Romania’s joining the EU, employment in Romania is likely to fall in (the footwear industry, neither industry, both industries, the beef industry) .

True or False: The degree of openness of the Romanian economy will not influence the mix of jobs.

a)True

b)False

the footwear industry
The table suggests that Italy has an absolute advantage over Romania in
hparative advantage in
neither industry
both industries
The table suggests that wages in Italy are
in Romania.
the beef industry
As a result of Romania's joining the EU, employment in Romania is likely to fall in
True or False: The degree of openness of the Romanian economy will not influence the mix of jobs.
True
False

8. Comparative advantage and import competition
Romania recently joined the European Union (EU) and faces intense import competition from other EU members, such as Italy. Suppose you have the
following data on labor productivity for footwear and beef production in Romania and Italy. Assume that footwear and beef production are measured in
constant dollars reflecting the value of the products.
Use the Ricardian model to analyze possible effects on each country's footwear and beef industries when answering the questions that follow.
Sales per Employee
Footwear
Вeef
Country (Dollars per year) (Dollars per year)
Romania
50,000
40,000
Italy
84,000
42,000
The table suggests that Italy has an absolute advantage over Romania in
and a comparative advantage in
footwear
The table suggests that wages in Italy are
in Romania. neither product
both products
As a result of Romania's joining the EU, employment in Romania is likely
beef
True or False: The degree of openness of the Romanian economy will not mmuence ne mix of jobs.
O True
O False

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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