Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 33, Problem 1WNG
(a)
To determine
The good in which Country C has a
(b)
To determine
The good in which Country I has a comparative advantage.
(c)
To determine
The favorable set of terms of trade.
(d)
To determine
The production and consumption of goods X and Y before and after specialization.
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What is the concept of comparative advantage in international trade? A. A country's ability to produce all goods more efficiently than other countries B. A country's ability to produce a good at a lower opportunity cost than other countries C. A country's ability to produce goods using the most advanced technology D. A country's ability to produce goods at the lowest absolute cost
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Which of the following statements about production and trade is FALSE?
1. If a country has an absolute advantage in producing a good, then it also has the comparative advantage in the production of that
good.
II. Rich countries will generally have the comparative advantage in the production of all goods.
III. If a country has the absolute advantage in the production of a good, then this country will be made better off by specializing in
the production of that good.
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b
C
d
Specialization and Trade Q4
Homework Answered
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I only.
I and II only.
I, II and III.
Ill only.
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Specialization and Trade Q9
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We see quite a bit of international trade in the real world. And trade is driven by specialization. So why don’t we see full specialization—for instance, all cars in the world being made in South Korea, or all the mobile phones in the world being made in China? Choose the best answer from among the following choices. a. High tariffs. b. Extensive import quotas c. Increasing opportunity costs. d. Increasing returns.
Chapter 33 Solutions
Economics (MindTap Course List)
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