EBK ESSENTIALS OF ECONOMICS
8th Edition
ISBN: 8220103599832
Author: Mankiw
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 6CQQ
To determine
The
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Kayla can cook dinner in 30 minutes and
wash the laundry in 20 minutes. Her
roommate takes twice as long to do each
task. How should the roommates allocate
the work?
a. There are no gains from trade in this
situation.
b. Kayla should do more of the washing
based on her absolute advantage.
c. Kayla should do more of the washing
based on her comparative advantage.
d. Kayla should do more of the cooking
based on her comparative advantage.
Kayla can cook dinner in 30 minutes and wash the laundry in 20 minutes. Her roommate takes twice as
long to do each task. How should the roommates allocate the work?
Oa. There are no gains from trade in this situation.
O b. Kayla should do more of the washing based on her absolute advantage.
Oc. Kayla should do more of the washing based on her comparative advantage.
O d. Kayla should do more of the cooking based on her comparative advantage
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.
Please answer parts iv and v
Chapter 3 Solutions
EBK ESSENTIALS OF ECONOMICS
Knowledge Booster
Similar questions
- 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. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? 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? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?arrow_forwardPoints on Production Possibilities Frontier Canada China Wheat Computers Wheat Computers A 150 0 90 0 B 100 25 60 60 C 50 50 30 120 D 0 75 0 180 Draw the production possibilities graph for Canada and China and label all of the points on the graph. For which good does Canada have a comparative advantage? For which good does China have a comparative advantage? If Canada and China decide to specialize and trade, how many more computers and bushels of wheat would be available for consumption by both countries? Show the increase on your graphs. Canada and China decide to impose trade restrictions in the form of a tariff on the computers and wheat. What are the costs or benefits to the consumer, producer and government for each country?arrow_forwardSuppose that two countries can both produce cars and cotton. The opportunity cost of a car in Country A is 50 units of cotton and the opportunity cost of a car in country B is 300 units of cotton. In this example a. None of these. b. Country A has a comparative advantage in cotton. c. Country B has a comparative advantage in cotton. d. Country A has an absolute advantage in cotton. e. Country B has an absolute advantage in cotton.arrow_forward
- Solve the problem. Show work and do not use AIarrow_forwardSean and Yvette are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Sean Yvette BARLEY (Bushels) On the following graph, use the blue line (circle symbol) to plot Sean's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Yvette's PPF. 120 108 96 84 72 60 48 36 24 12 0 0 Alfalfa Barley (Bushels per acre) (Bushels per acre) 18 6 28 7 60 120 180 240 300 380 420 480 540 600 ALFALFA (Bushels) Sean's PPF Yvette's PPF (?)arrow_forward8arrow_forward
- Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why? this question was not well explained last time i asked it neither they use the numbers in the question so please i need the answer in simple way using the numbers and the countries are mentioned in the question thank youarrow_forwardEngland and Scotland both produce scones and sweaters. Suppose that an English works can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour. a. Which country has the absolute advantage in the production of each good? Which country has the comparative advantage? b. If England and Scotland decide to trade, which commodity will Scotland trade to England? Explain. c. If a Scottish worker could produce only 1 sweater per hour, would Scotland still gain from trade? Would England still gain from trade? Explain.arrow_forwardSuppose that one day of labor in each country produces the following quantities of fish and cheese: 1. Does France have a comparative advantage in the production of fish, cheese, or neither? Explain. 2. Does Japan have a comparative advantage in the production of fish, cheese, or neithter? Explain. 3. Suppose the countries decide to trade with each other—1 ton of cheese for 3 tons of fish. Would this trade be advantageous to both countries? Explain. Country Fish (tons) Cheese (tons) France 80 40 Japan 200 50arrow_forward
- Using the numbers in the table, determine which country has a comparative advantage in producing each product. Output per Hour of Work Switzerland Canada Smartphones 8 5 Which of the following statements is true? A. The opportunity cost for Canada to produce one Smartphone is 0.60 Fitness Bracelet. B. The opportunity cost for Switzerland to produce one Fitness Bracelet is 1.25 Smartphones. OC. The opportunity cost for Switzerland to produce one Smartphone is 0.80 Fitness Bracelet. OD. The opportunity for Canada to produce one Smartphone is 1.67 Fitness Bracelets. Fitness Bracelets 10 3arrow_forwardFigure 3-3 Ice cream and cones are measured in kilograms. Cones Ice Cream Cones Jerry Ice Cream Refer to Figure 3-3. What does each of the two producers have a comparative or absolute advantage in? a. Ben has an absolute advantage in neither good, and Jerry has a comparative advantage in ice cream. .b. Ben has an absolute advantage in ice cream, and Jerry has a comparative advantage in cones. X c. Ben has an absolute advantage in cones, and Jerry has a comparative advantage in ice cream. d. Ben has an absolute advantage in both goods, and Jerry has a comparative advantage in cones.arrow_forwardLook at F where it says Liz has comparative advantage. Why is it that she has comparative advantage over mike in cleaning windows when mike has comparative advantage in picking up leaves? What’s the difference?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax