MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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Question
Chapter 2, Problem 9QE
(a)
To determine
Graphical representation of
(b)
To determine
(c)
To determine
Possibility of
(d)
To determine
Graphical representation of gain from trade between the U.S and Japan.
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A) With the following data decide which country has comparative advantage for which good.
Show your math.
Good X Good Y
Country A 75 75
Country B 60 70
B) Using the data above prove both countries can be better off trading with each other than if
they do not trade.
C)Why do we use comparative advantage to decide which country produces which good?
Support your answer.
1. A) With the following data decide which country has comparative advantage for which good.
Show your math.
Good X
Good Y
Country A
75
75
Country B
60
70
B) Using the data above prove both countries can be better off trading with each other than if
they do not trade.
C)Why do we use comparative advantage to decide which country produces which good?
Support your answer.
Will a country import or export products for which it has a comparative advantage? Explain.
Chapter 2 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 2.1 - Prob. 1QCh. 2.1 - Prob. 2QCh. 2.1 - Prob. 3QCh. 2.1 - Prob. 4QCh. 2.1 - Prob. 5QCh. 2.1 - Prob. 6QCh. 2.1 - Prob. 7QCh. 2.1 - Prob. 8QCh. 2.1 - Prob. 9QCh. 2.1 - Prob. 10Q
Ch. 2.A - Prob. 1QECh. 2.A - Prob. 2QECh. 2.A - Prob. 3QECh. 2.A - Prob. 4QECh. 2.A - Prob. 5QECh. 2.A - Prob. 6QECh. 2.A - Prob. 7QECh. 2.A - Prob. 8QECh. 2 - Prob. 1QECh. 2 - Prob. 2QECh. 2 - Prob. 3QECh. 2 - Prob. 4QECh. 2 - Prob. 5QECh. 2 - Prob. 6QECh. 2 - Prob. 7QECh. 2 - Prob. 8QECh. 2 - Prob. 9QECh. 2 - Prob. 10QECh. 2 - Prob. 11QECh. 2 - Prob. 12QECh. 2 - Prob. 1QAPCh. 2 - Prob. 2QAPCh. 2 - Prob. 3QAPCh. 2 - Prob. 4QAPCh. 2 - Prob. 5QAPCh. 2 - Prob. 1IPCh. 2 - Prob. 2IPCh. 2 - Prob. 3IPCh. 2 - Prob. 4IPCh. 2 - Prob. 5IPCh. 2 - Prob. 6IP
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Similar questions
- In the past, comparative advantages have sometimes shifted from one nation to another. What factors do you think caused these shifts? Why? Was there anything a nation could have done to prevent an advantage from shifting to another nation?arrow_forwardB and C pleasearrow_forwardThe U.S. can produce 100 pounds of beef or 10 cars; in contrast Germany can produce 40 pounds of beef or 30 cars. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing cars? What is the opportunity cost of producing one pound of beef in the U.S. What is the opportunity cost of producing one pound of beef in Germany?arrow_forward
- The United States and Canada have the production possibilities curves shown above. It is determined that the United States has the comparative advantage in peanuts. Will both nations gain from trade if the terms of trade that are offered are 1 Peanut= 2 Corn? Why or why not? Show your work.arrow_forwardAccording to the concept of comparative advantage, a good should be produced in that nation where: its domestic opportunity cost is greatest. money is used as a medium of exchange. its domestic opportunity cost is least. the terms of trade are maximizedarrow_forwardAccording to the "Principle of Comparative Advantage," a country should specialize in producing a good or service if it has:a) The highest opportunity cost b) The lowest opportunity cost c) The highest production cost d) The lowest production costarrow_forward
- Assume that you have been hired by an International Organization to be consulted on various issues that the country Motherland faces. For this exercise, assume that Motherland is a small agricultural economy. Part A. Assume that the biggest trading partner of Motherland is the United States. Unlike Motherland, the United States is a large industrial country. Use the Ricardian Model (of comparative advantage) to explain the trade between Motherland and the United States.arrow_forwardIf a country produces only two goods, then it is not possible to have a comparative advantage in the production of both those goods. True Falsearrow_forwardThe table below shows the maximum quantities of two goods that each country can produce. If the countries follow the principle of comparative advantage, which of the following is a potential benefit of trade? Vibranium (tons) Gold (tons) Wakanda 8 tons 2 tons Zamunda 2 tons 1 ton Group of answer choices Trade can allow each country to increase consumption beyond its production possibilities frontier. Trade can allow each country to shift its production possibilities frontier outward to higher levels of production. Trade can allow each country to become less vulnerable to the actions of the other country. All of these answers are correct.arrow_forward
- a) Determine which country has a comparative advantage in each good . b) If Country A and Country B each have 100 units of labour , calculate the maximum production of each good for both countries .arrow_forwardThis is true false please answer allarrow_forwardWhich of the following BEST describes comparative advantage? Country A can produce a product at a lower opportunity cost than Country B Country A can produce more of a product than Country B Country A has a currency worth more than the currency of country B Country A uses a smaller amount of a resource to produce than Country Barrow_forward
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