Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 33, Problem 33P
From earlier chapters you will recall that technological change shifts the average cost
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In the eighteenth century, some writers argued that one person in a trade could be made better off only by gaining at the expense of the other. Explain the fallacy in this argument.
Analytically discuss how Economies of Scale and Imperfect Competition describe contemporary trade.
(International Economics, will up vote ?)
As, this website for free source of tools I do not want also same answers than I can easily copy the answer from here do not need to post my questions asking again please I do not want same answers hope you understand whoever already take this answers we all same professor I think hope you understand I do not same writing even I always change the my writing before summit
International Trade (Chapter 20)
What is the law of comparative advantage, and why is it important in international trade?
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1. What is the law of comparative advantage, and why is it important in international trade?Expert Answer
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Comparative advantage refers to the situation where the ability of one country to produce goods and services less opportunity…
Chapter 33 Solutions
Principles of Economics 2e
Ch. 33 - True or False: The source of comparative advantage...Ch. 33 - Brazil can produce 100 pounds of beef or 10 autos....Ch. 33 - In France it takes one worker to produce one...Ch. 33 - In Germany it takes three workers to make one...Ch. 33 - How can there be any economic gains for a country...Ch. 33 - Table 33.15 shows how the average costs of...Ch. 33 - If the removal of trade banters is so beneficial...Ch. 33 - What is absolute advantage? What is comparative...Ch. 33 - Under what conditions does comparative advantage...Ch. 33 - What factors does Paul Krugman identity that...
Ch. 33 - Is it possible to have a comparative advantage in...Ch. 33 - How does comparative advantage lead to gains from...Ch. 33 - What is intra-industry trade?Ch. 33 - What are the two main sources of economic gains...Ch. 33 - What is splitting up the value chain?Ch. 33 - Are the gains from international trade more likely...Ch. 33 - Are differences in geography behind the...Ch. 33 - Why does the United States not have an absolute...Ch. 33 - Look at Exercise 33.2. Compute the opportunity...Ch. 33 - You just overheard your friend say the following:...Ch. 33 - Look at Table 33.9. Is there a range of trades for...Ch. 33 - You just got a job in Washington, D.C. You move...Ch. 33 - Does intra-industry trade contradict the theory of...Ch. 33 - Do consumers benefit from intra-industry trade?Ch. 33 - Why might intra-industry trade seem surprising...Ch. 33 - In World Trade Organization meetings, what do you...Ch. 33 - Why might a low-income country put up barriers to...Ch. 33 - Can a nations comparative advantage change over...Ch. 33 - France and Tunisia both have Mediterranean...Ch. 33 - In Japan, one worker can make 5 tons of rubber or...Ch. 33 - Review the numbers for Canada and Venezuela from...Ch. 33 - In Exercise 33.31, is there an ask where...Ch. 33 - From earlier chapters you will recall that...Ch. 33 - Consider two countries: South Korea and Taiwan....Ch. 33 - If trade increases world GDP by 1 per year, what...
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Similar questions
- Macmillan Learning The Power of Trade and Comparative Advantage: Work It Out 5 Here's another specialization and exchange problem. This problem is wholly made-up, so that you won't be able to use your intuition about the names of countries or the products to figure out the answer. Consider the following productivity table: Mandovia Ducennia Number of Hours to Make One Rotid Output of rotids for Mandovia: Total rotid output: 50 150 Number of Hours to Make One Tauron d. Now allow specialization. One billion hours of labor are available for making products in Mandovia, and 2 billion hours of labor are available for making products in Ducennia. If each country completely specializes in the product in which it holds the comparative advantage, what will the total output of rotids be? Of taurons? Is the total output of each product higher than before? million 100 million 200 Output of rotids for Ducennia: millionarrow_forwardDiscuss scale economies as they apply to trade.arrow_forwardWhich of the following is predicted by the models of intraindustry trade we have studied? Countries will export what they have a relatively low opportunity cost of producing and import what they have a high opportunity cost of producing. Trade will either help consumers or help producers in a given industry but never both. Trade may decrease the price and increase the variety in the same industry for two countries that begin to trade.arrow_forward
- When should a company consider expanding from strictly domestic trade to international trade?arrow_forwardWhat is trade theory .Explain with two graphical examples.arrow_forwardWhen Oz land closes off to trade, it notices that the number of firms in an industry double in size. What economic theory would help us explain this phenomenon?arrow_forward
- explain how Lego gained global competitiveness by referring to Porter's Diamond Theoryarrow_forwardOnly typed answerarrow_forwardQuestion: What are the explanations and advantages of free trade that the new theories of international trade give? The international monopoly of the drone market is held by an American firm. Its average production cost is given by the following function: CME = (5000-3Q) / 10 China is considering setting up a firm with the average cost function: CMC = (3500 - 3Q) / 10 The international request is written: DM = 1000 - p and the only Chinese request is written: DC = 500– 0.5 p A. Characterize the equilibrium in a monopoly situation when the American firm is alone in the world market. B. Describe the equilibrium in the event that China sets up a drone production industry (assume that Chinese production remains modest - close to 0 - in the event of entry). C. What policy would improve the balance for China and for the world as a whole, if the United States were excluded? Characterize this balance. Explain and comment. D. Represent all the equilibrium situations on a single graph.arrow_forward
- Why people support in illegal trade is a lucrative form of business?arrow_forwardConsider the following model of trade between Home and Foreign. Assume throughout that those two countries are the only two countries in the world, at least for purposes of trade. There are two goods: Corn and Radio. Consumers always spend one-third of their income on Corn and the remainder on Radios. The only factor of production is labour. Each home country worker can produce 2 units of Corn or 3 units of Radios per unit of time, while each foreign worker can produce 2 units of Corn or 4 units of Radios per unit of time. There are 30 workers in Home and 60 workers in Foreign. Which country has a comparative advantage in Radios? In Corn?arrow_forwardConsider the following model of trade between Home and Foreign. Assume throughout that those two countries are the only two countries in the world, at least for purposes of trade. There are two goods: Corn and Radio. Consumers always spend one-third of their income on Corn and the remainder on Radios. The only factor of production is labour. Each home country worker can produce 2 units of Corn or 3 units of Radios per unit of time, while each foreign worker can produce 2 units of Corn or 4 units of Radios per unit of time. There are 30 workers in Home and 60 workers in Foreign. Find the autarky relative price of Radios in both countries (i.e., the price of Radio divided by the price of Corn).arrow_forward
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