MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 5QE
(a)
To determine
Illustration of the
(b)
To determine
Identify the countries with
(c)
To determine
Explain the situation when both countries are specialized in the production of same good.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose there are two countries for analyses, the United States and Indonesia. Assume that 2000 man hours are available in the United States and 36000 in Indonesia. The following table provides information on how many man-hours are needed to produce one unit of the same goods.
Indonesia
United States
Cloth
50
3
Machines
100
5
2.5 Indonesia is a developing country and the United States a developed country. Do you think Indonesia benefits from trade with the United States? What should the trade ratio be for Indonesia to benefit from trade.
How can you say that a country participates in the global market?
Which country has comparative at producing good x. How can you tell. Which country has a comparative advantage at producing y
Chapter 9 Solutions
MICROECONOMICS
Ch. 9.1 - Prob. 1QCh. 9.1 - Prob. 2QCh. 9.1 - Prob. 3QCh. 9.1 - Prob. 4QCh. 9.1 - Prob. 5QCh. 9.1 - Prob. 6QCh. 9.1 - Prob. 7QCh. 9.1 - Prob. 8QCh. 9.1 - Prob. 9QCh. 9.1 - Prob. 10Q
Ch. 9 - Prob. 1QECh. 9 - Prob. 2QECh. 9 - Prob. 3QECh. 9 - Prob. 4QECh. 9 - Prob. 5QECh. 9 - Prob. 6QECh. 9 - Prob. 7QECh. 9 - Prob. 8QECh. 9 - Prob. 9QECh. 9 - Prob. 10QECh. 9 - Prob. 11QECh. 9 - Prob. 12QECh. 9 - Prob. 13QECh. 9 - Prob. 14QECh. 9 - Prob. 15QECh. 9 - Prob. 16QECh. 9 - Prob. 17QECh. 9 - Prob. 18QECh. 9 - Prob. 19QECh. 9 - Prob. 1QAPCh. 9 - Prob. 2QAPCh. 9 - Prob. 3QAPCh. 9 - Prob. 4QAPCh. 9 - Prob. 5QAPCh. 9 - Prob. 1IPCh. 9 - Prob. 2IPCh. 9 - Prob. 3IPCh. 9 - Prob. 4IPCh. 9 - Prob. 5IP
Knowledge Booster
Similar questions
- Below is the data for the maximum production of the only two products for the countries of Oz and Zas.arrow_forwardThe table below describes production possibilities for Mexico and Nigeria. Each number in the table shows the number of workers needed to produce one unit of the product. Country Shoes Glasses Mexico 10 12 Nigeria 18 5 Which country has an absolute advantage in producing Glasses? Which country has a comparative advantage in producing Glasses? Which country has a comparative advantage in producing Shoes?arrow_forwardIf country A produces oranges and country B does not have the climate to produce oranges, however, country B can produce cars which country A does not have the technology to produce cars. Does it make sense for them to trade?arrow_forward
- Consider a hypothetical world with two countries: Country A and Country B. Both countries produce computers and televisions. Assume that consumers in both countries desire both these goods and that consumers and producers cannot differentiate between computers and televisions from either country. The production in each country before trade is shown in the table below. Production before trade: Country Computer Production Television Production Country A 3,000 1,800 Country B 1,200 1,000 Total 4,200 2,800 Suppose that each country transfers some amount of resources toward its area of comparative advantage. The production in each country after the countries started trade is as follows: Production after Trade Country Computer Production Television Production Country A 4,000 1,200 Country B 600 2,000 Total 4,600 3,200 Determine the range for the quantity of computers exchanged for televisions that will benefit both countries. Note that a country will…arrow_forwardThe table below shows how many millions of cars and trucks each country can produce in one year. Based on the information, which of the following is true? Maximum Country Country outputs A B CARS 30 m 35 m TRUCKS 6 m 21 m Copyright: www.economicsonline.co.uk Country A has the comparative advantage in trucks Country B has the comparative advantage in cars Country A has the comparative advantage in cars Country A has the absolute advantage in carsarrow_forwardWhat is the opportunity cost of a pair of shoes in Mexico? What is the opportunity cost of a pair of shoes in Nicaragua ? Which country has a comparative advantage in the production of shoes? Which country has a comparative advantage in the production of clothing? In this example, the country of Mexico should export ----------and import ----------------.arrow_forward
- When a country changes from agricultural to industrial, how can it affect the comparative advantage of that country? How will it change the comparative advantage of the country?arrow_forwardThe table below shows the production of beef (in pounds) and autos of ONE worker in Argentina and in Mexico: Beef (in pounds) Autos Argentina 100 10 Mexico 40 30 1. Suppose that BEFORE TRADE (or WITHOUT TRADE) each country has 50 workers and they each allocate 25 workers for the production of beef and 25 workers for the production of autos. Find the maximum production and consumption of both goods for each country. 2. If the countries decide to engage in trade (WITH TRADE), they will specialize in the production of the good in which they have comparative advantage. In which good should Argentina specialize? How about Mexico? JUSTIFY! (To answer this question you must calculate the opportunity cost of each good for both countries and then find the country's comparative advantage). What is the WITH TRADE production of the countries? 3. If the countries decide to engage in trade the TERMS-OF-TRADE will be set at 1,500 pounds of beef for 300 autos. With this information complete the tables…arrow_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
- Will a country import or export products for which it has a comparative advantage? Explain.arrow_forwardUse comparative advantage, two countries and two goods, to explain why every country can be better off from international trade.arrow_forwardIn Country T, it takes 10 resources to produce 1 ton of cocoa and 13.5 resources to produce 1 ton of rice. In Country Y, it takes 40 resources to produce 1 ton of cocoa and 20 resources to produce 1 ton of rice. Country T has a comparative advantage over Country Y in cocoa. This follows the theory of comparative advantage, and we can say that engaging in free trade benefits all countries that participate in it; however, this conclusion stems from which of these inaccurate assumptions? Multiple Choice We have assumed constant returns to scale. We have assumed the prices of resources and exchange rates in the two countries are dynamic. We have assumed there are barriers to the movement of resources from the production of one good to another within the same country. We have assumed that agrarian nations do not specialize in producing particular products. We have assumed diminishing returns to specialization.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc