Why don't countries specialize in the productionof just a few goods for which they have acomparative advantage? a. In most cases,increasing opportunity costs would accompanythe continually increasing production of aproduct specialist. b. In most cases, resourcedrains would accompany the continuallyincreasing production of a product specialist. c.Doing so would limit innovation in otherindustries. d. Doing so would limit innovation inthe core industries, because there would be littleincentive for it.

The reason countries don't specialize in the production of just a few goods for which they have a…

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Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 15P

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1.Under what conditions is the production possi bilities frontier linear rather than bowed out? 2.Explain how absolute advantage and compara-tive advantage differ. 3.Give an example in which one person has anabsolute advantage in doing something butanother person has a comparative advantage. 4.Is basoute advantage or comparative advantage more important for trade? Explain yourreasoning using the example in your answer toQuestion 3..If two parties trade based on comparativeavantage an ot gain, in wat range mustthe price of the trade lie?.Will a nation tend to export or import goods forwhich it has a comparative advantage?
Which of the following is true about BRIC countries: a. There is low prospects of growth O b. To attain raw materials you will outsource to Bangladesh O c. There is low investment O d. There are high growth rates which may not be seen in North America Google is pursuing a global brand web strategy and must be mindful of the cultural and language differences across countries. Select one: O True O False occurs when a company exports to a foreign market at a price that is either lower than the domestic prices in that country or less than the cost of production.
a. Plot the production possibility curve for AX Cosmetics.b. Calculate the productivity ratio for both products.c. When additional resources are added, AZ Cosmetics is able to produce 20% more quantity for both products. If the productivity ratio remains the same, calculate the new production possibility table for the compan
Which is NOT TRUE regarding the diffusion of the printing press and printed books in Europe? O It helped the free exchange of ideas. O It helped facilitate the Italian Renaissance. It increased the importance of clergy in the production of knowledge, since they owned the presses. It helped destabilize traditional society. O Printing brought literacy to adults, especially males as female literacy lagged far behind.
None
.Brazil can produce 100 pounds of beef or 10 autos; in contrast the United States can produce 40pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has theabsolute advantage in producing autos? What is the opportunity cost of producing one pound of beef inBrazil? What is the opportunity cost of producing one pound of beef in the United States?
Q15
Only need help with questions from section D, E an de #2
. Which country has an absolute advantage in the production of fruit? Which countryhas an absolute advantage in the production of timber?b. Which country has a comparative advantage in the production of fruit? of timber?c. Sketch the PPF’s for both countries.d. Assuming no trading between the two, if both countries wanted to have equalnumbers of feet of timber and baskets of fruit, how would they allocate workers tothe two sectors?e. Show that specialization and trade can move both countries beyond their PPF’s.
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.
1. Continuing to produce diesel-powered cars will mean that Toyota can produce Dlesel-powered cars (per week) fewer hybrids than it could if it were to switch all its production to hybrids. Given the generally agreed upon bright future for hybrids, why would Toyota continue to produce diesel-powered 400 cars? PPFns 2. Assume that the graph below accurately represents Toyota's production possi- bilities frontiers at its Canadian plants PPFes for 2013 and 2015. Also assume that in 2015 it has customer orders for 500 hybrids per week and 400 diesel-pow- ered cars per woek. Explain whether Toyota can fill all of these orders from its 500 800 Canadian plants. Hybrids (per week) Can I have answer for question 2? Thank you!
Suppose that there are 10 million workers inCanada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. a. What is the opportunity cost of producing acar in Canada? What is the opportunity costof producing a bushel of wheat in Canada?Explain the relationship between the opportunity costs of the two goods. b. Draw Canada’s production possibilities frontier. If Canada chooses to consume 10 millioncars, how much wheat can it consume without trade? Label this point on the productionpossibilities frontier. c. Now suppose that the United States offers tobuy 10 million cars from Canada in exchangefor 20 bushels of wheat per car. If Canadacontinues to consume 10 million cars, howmuch wheat does this deal allow Canada toconsume? Label this point on your diagram.Should Canada accept the deal?

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