Use the table of production possibilities below to answer the that follows. Pecans (tons) Cranberries (tons) United States 15 5 Canada 84 Which of the following is true about this data? 1Select one: a. The United States has the absolute advantage in producing pecans. b. Canada has the absolute advantage in producing cranberries. c. Canada has the absolute advantage in producing pecans. d. Canada has a lower opportunity cost for the production of pecans. e. Neither country can

Use the table of production possibilities below to answer the that follows. Pecans (tons) Cranberries (tons) United States 15 5 Canada 84 Which of the following is true about this data? 1Select one: a. The United States has the absolute advantage in producing pecans. b. Canada has the absolute advantage in producing cranberries. c. Canada has the absolute advantage in producing pecans. d. Canada has a lower opportunity cost for the production of pecans. e. Neither country can

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 2SCQ: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40...

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In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine. In Tunisia it takes two workers to produce one sweater, and three workers to produce one bottle of wine. Who has the absolute advantage in production of sweaters? Who has the absolute advantage in the production of wine? How can you tell?
Does intra-industry trade contradict the theory of comparative advantage?
How does comparative advantage lead to gains from trade?
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. a. Who has the absolute advantage in the production of rubber or radios? How can you tell? b. Calculate the opportunity cost of producing 80 additionalradiosinJapanandinMalaysia.(Your calculationmayinvolvefractions,whichisfine.) Which country has a comparative advantage in the production of radios? c. Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? d. In this example, does each country have an absoluteadvantageandacomparativeadvantage in the same good? e. InwhatproductshouldJapanspecialize?Inwhat product should Malaysia specialize?
For this question, only consider Korea and the United States. If the United States is better at producing agricultural goods and technological goods, then_ It would be impossible for the United States to benefit from trade with Korea since the United States have an absolute advantage in the production of both good A. B. It would be impossible for the United States to have an absolute advantage over another country in the production of both products. C. The United States should specialize in the production of technological goods if Korea has a comparative advantage in the production of agricultural goods. The United States should specialize in the product in which it has an absolute advantage. O D.
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Table 3-3 Maria Courtney Labour hours needed to make one unit: Sweater 40 20 Coat 8 5 Amount produced in 40 hours: Sweater 1 2 Coat 5 8 Refer to Table 3-3. What does each of the two producers have a comparative or absolute advantage in? a Maria has an absolute advantage in coats, and Courtney has a comparative advantage in sweaters. Ob. Maria has an absolute advantage in both goods, and Courtney has a comparative advantage in coats. OC. Maria has an absolute advantage in sweaters, and Courtney has a comparative advantage in sweaters. Od. Maria has an absolute advantage in neither good, and Courtney has a comparative advantage in sweaters. CLEAR MY CHOICE
nave a n ab je in bothi good because they both produce boots and shirts. 40- 38- 36- B. Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts. 34- 32- 30- 28- 26- 24- 22- 20- 18- 16- 14- 12- 10- 8- C. The United States has an absolute advantage in both goods because it can produce more boots and more shirts. PPFUS. D. Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts. O E. Canada has an absolute advantage in both goods because it can produce more boots and more shirts. US 6- Suppose initially that the United States is consuming 4 boots and 8 shirts and Canada is consuming 18 boots and 2 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades…
An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes.a. Who has the absolute advantage in coffee? Explain.b. Who has the comparative advantage in cof-fee? Explain.c. If the two countries specialize and trade with each other, who will import coffee? Explain.d. Assume that the two countries trade and that the country importing coffee trades 2 ounces of soybeans for 1 ounce of coffee. Explain why both countries will benefit from this trade.