Principles of Macroeconomics 2e
2nd Edition
ISBN: 9781947172388
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 20, Problem 34P
Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day at the cost of
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Chapter 20 Solutions
Principles of Macroeconomics 2e
Ch. 20 - True or False: The source of comparative advantage...Ch. 20 - Brazil can produce 100 pounds of beef or 10 autos....Ch. 20 - In France it takes one worker to produce one...Ch. 20 - In Germany it takes three workers to make one...Ch. 20 - How can there be any economic gains for a country...Ch. 20 - Table 33.15 shows how the average costs of...Ch. 20 - If the removal of trade banters is so beneficial...Ch. 20 - What is absolute advantage? What is comparative...Ch. 20 - Under what conditions does comparative advantage...Ch. 20 - What factors does Paul Krugman identity that...
Ch. 20 - Is it possible to have a comparative advantage in...Ch. 20 - How does comparative advantage lead to gains from...Ch. 20 - What is intra-industry trade?Ch. 20 - What are the two main sources of economic gains...Ch. 20 - What is splitting up the value chain?Ch. 20 - Are the gains from international trade more likely...Ch. 20 - Are differences in geography behind the...Ch. 20 - Why does the United States not have an absolute...Ch. 20 - Look at Exercise 33.2. Compute the opportunity...Ch. 20 - You just overheard your friend say the following:...Ch. 20 - Look at Table 33.9. Is there a range of trades for...Ch. 20 - You just got a job in Washington, D.C. You move...Ch. 20 - Does intra-industry trade contradict the theory of...Ch. 20 - Do consumers benefit from intra-industry trade?Ch. 20 - Why might intra-industry trade seem surprising...Ch. 20 - In World Trade Organization meetings, what do you...Ch. 20 - Why might a low-income country put up barriers to...Ch. 20 - Can a nations comparative advantage change over...Ch. 20 - France and Tunisia both have Mediterranean...Ch. 20 - In Japan, one worker can make 5 tons of rubber or...Ch. 20 - Review the numbers for Canada and Venezuela from...Ch. 20 - In Exercise 33.31, is there an ask where...Ch. 20 - From earlier chapters you will recall that...Ch. 20 - Consider two countries: South Korea and Taiwan....Ch. 20 - If trade increases world GDP by 1 per year, what...
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- Sue is a sole proprietor of her own sewing business. Revenues are $150,000 per year and raw material (cloth, thread) costs are $130,000 per year. Sue pays herself a salary of $60,000 per year but gave up a job with a salary of $80,000 to run the business. ○ A. Her accounting profits are $0. Her economic profits are - $60,000. ○ B. Her accounting profits are $0. Her economic profits are - $40,000. ○ C. Her accounting profits are - $40,000. Her economic profits are - $60,000. ○ D. Her accounting profits are - $60,000. Her economic profits are -$40,000.arrow_forwardSelect a number that describes the type of firm organization indicated. Descriptions of Firm Organizations: 1. has one owner-manager who is personally responsible for all aspects of the business, including its debts 2. one type of partner takes part in managing the firm and is personally liable for the firm's actions and debts, and the other type of partner takes no part in the management of the firm and risks only the money that they have invested 3. owners are not personally responsible for anything that is done in the name of the firm 4. owned by the government but is usually under the direction of a more or less independent, state-appointed board 5. established with the explicit objective of providing goods or services but only in a manner that just covers its costs 6. has two or more joint owners, each of whom is personally responsible for all of the partnership's debts Type of Firm Organization a. limited partnership b. single proprietorship c. corporation Correct Numberarrow_forwardThe table below provides the total revenues and costs for a small landscaping company in a recent year. Total Revenues ($) 250,000 Total Costs ($) - wages and salaries 100,000 -risk-free return of 2% on owner's capital of $25,000 500 -interest on bank loan 1,000 - cost of supplies 27,000 - depreciation of capital equipment 8,000 - additional wages the owner could have earned in next best alternative 30,000 -risk premium of 4% on owner's capital of $25,000 1,000 The economic profits for this firm are ○ A. $83,000. B. $82,500. OC. $114,000. OD. $83,500. ○ E. $112,500.arrow_forward
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