The two phrases/words that can be expressed in terms of each other are? opportunity costs and comparative advantage Or absolute advantage & comparative advantage In order to have gains in trade between two countries, it is not necessary for there to be (a/an)? absolute advantage True False

The two phrases/words that can be expressed in terms of each other are? opportunity costs and comparative advantage Or absolute advantage & comparative advantage In order to have gains in trade between two countries, it is not necessary for there to be (a/an)? absolute advantage True False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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“In what way does an understanding of the shifts in the PPC help businesses/countries make production decisions?” Rubric: ensure the importance of absolute and comparative advantage is made clear.
Trade makes us worse off because it makes our economy weaker. We need to be completely self-sufficient."Evaluate this statement based on what you've learned about gains from trade, comparative advantage, and absolute advantage in this chapter. Is the statement true or false, and why
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
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 why Japan exports automobiles, while the U.S. exports aircraft? Use the prior definitions of absolute and comparative advantage to assist with your answer.
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?
***Please look at the screenshot for graphs*** Fill in the charts below with values based on the two Production Possibilities Frontiers above. Motor Vehicle Production in the United States (in millions) Cars Trucks 0 4 0 Motor Vehicle Production in Mexico (in millions) Cars Trucks 0 2 0 Which country has the absolute advantage in producing cars? Which country has the absolute advantage in producing trucks? Which country has the comparative advantage in producing cars? Which country has the comparative advantage in producing trucks? Should these two countries trade? Why or Why not?
No written by hand solution Based on information below (2 countries x 2 products), if US has comparative advantage in producing Rice, what can you say about X? (note: figures represent production or output.) Please assume that X is a positive number. Rice Car US 7 6 Korea 9 X X < 4 X > 54/7 X < 63/7 X < 7
American worker takes 20 hours to produce one computer and 300 hours to produce an RV. A Japanese worker takes 30 hours to produce one computer and 450 Hours to produce an RV. Which country has a comparative advantage in what product? Why?
Using the data presented in the table below answer the followings: a) which country has comparative advantage in the production of apples, oranges? Explain and show wor b) which country has an absolute advantage in the production of apples, oranges? c) Which country should specialize in the production of apples, oranges? Explain why points) Production per worker: Oranges U.S. 300 Mexico 150 Apples 100 600
Suppose that France and Italy both produce wine and cheese. France's opportunity cost of producing a case of cheese is 5 barrels of wine, while Italy's opportunity cost of producing a case of cheese is 10 barrels of wine. By comparing the opportunity cost of producing cheese in the two countries, you can tell that comparative advantage in the production of cheese and has a comparative advantage in the production of wine. Suppose that France and Italy consider trading cheese and wine. France can gain from specialization and trade as long as it receives more than of wine for each case of cheese it exports to Italy. Similarly, Italy can gain from trade as long as it receives of cheese for each barrel of wine it exports to France. more than Based on your answer to the last question, a price ratio between benefit both countries. has a barrels of wine per case of cheese will
What is the opportunity cost of a pair of shoes in Mexico? What is the opportunity cost of a pair of shoes in Nicaragua ? Which country has a comparative advantage in the production of shoes? Which country has a comparative advantage in the production of clothing? In this example, the country of Mexico should export ----------and import ----------------.