5. Alphadelphia and Omegemetro are negotiating a trade agreement. The table below shows the production information for each country. A trade representative proposes the following terms of trade: 1DP = 5MP Who do you think he represents and why? (MO2) Alphadelphia Production possibilities 1,000 Dr Peppers OR 6,000 Moon Pies Omegametro Production Possibilities 10,000 Dr Peppers OR 10,000 Moon Pies

5. Alphadelphia and Omegemetro are negotiating a trade agreement. The table below shows the production information for each country. A trade representative proposes the following terms of trade: 1DP = 5MP Who do you think he represents and why? (MO2) Alphadelphia Production possibilities 1,000 Dr Peppers OR 6,000 Moon Pies Omegametro Production Possibilities 10,000 Dr Peppers OR 10,000 Moon Pies

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 5CQQ

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Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
How does comparative advantage lead to gains from trade?
Under what conditions does comparative advantage lead to gains from trade?
96 FL If Honduras and Guatemala each specialize in producing the good in which they have a comparative advantage and then trade with one another original PPF. O both countries would end up on a point to the right of their O both countries would end up at a point to the left of their one country would remain on its original PPF, while the other country would end up on a point to the right of its O both countries would end up on a different point on their Unit 7- Chapter 1...xlsx Unit 7- Chapter 1..xlsx O Topic 2 (2).docx O Topic 2 (1).docx 11:09 PM 73°F SUI prt sc delete f12 pus backspace -> unu Bock enter pause T shift alt ctrl
Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate. Quantity that each make Bushel of Corn Pound of Pork Sardi 20 Tinaka 15 12 10 Refer to Table 3-1. Sardi has a comparative advantage in the production of corn and Tinaka has a comparative advantage in the production of pork. pork and Tinaka has a comparative advantage in the production of corn. both goods and Tinaka has a comparative advantage in the production of neither good. neither good and Tinaka has a comparative advantage in the production of both goods.
Question & Use the table to answer the question. Apples Bananas Country A Country B 800 500 O a O b Ос Od 1500 If all resources of Country A and Country B were dedicated toward the production of either apples or bananas, the maximum production of each is summarized in the table above. In order for both countries to benefit from trade, which country should specialize in banana productio and why? 1600 Review Answers Country A since it has the absolute advantage in banana production. Country A since it has the comparative advantage in banana production. Country B since it has the comparative advantage in banana production. Country B since it has the absolute advantage in banana production. Saved at 8:09 am Support | Schoology Blog | PRIVACY POLICY | Terms of
1. Gains from trade Consider two neighboring island countries called Dolorium and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Country Dolorium Contente Jeans Rye (Pairs per hour of labor) (Bushels per hour of labor) 20 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Dolorium produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.…
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24. The table below presents the number of workers it takes to produce 10 Headphones and 10 Tablets in the countries of Greatstown and Minitown. Country Headphones (workers per 10 units) Tablets (workers per 10 units) Greatstown 4 2 Minitown 7.1 8.1 Does Minitown have a comparative advantage in the production of Headphones? OYes ONO Does Minitown have a comparative advantage in the production of Tablets? OYes ONO Does Minitown export Headphones? Olt should export Headphones Olt should export Tablets Olt should not trad
QUESTION 7 65+ 60+ 55 50 45 40 282828 35+ 30 25 20 15 10 5+ Cay China's PPF + 5 10 15 20 25 30 35 40 45 50 55 Computer OA. 40 cars and 20 computers B. 40 cars and zero computers C. 20 cars and 20 computers 个 Cor 65+ 60- 55 50+ 45+ Refer to figures above. Suppose that China and Japan fully specialize in the goods in which they have a comparative advantage. Trade is then initiated between the two countries and 20 units of cars are exchanged for 20 units of computers. How many units of cars and computers will China be able to consume after trade? D.40 cars and 40 computers 40- 35+ 30 25- 20 15 10- 5 Japan's PPF 5 10 15 20 25 30 35 40 45 50 55 60 Computer
International market Country 2 Country 1 s2 S2 25 25 25 20 20 20 S1 15 15 15 s1 EIP IP IP 10 10 10 5 D2 d2 d1 Q SD1 0- 0 3 69 1215182124 O 0 3 6 9 1215182124Q 0369 1215182124 Q 18. What is the net welfare gain from trade to the economies of both countries together? (hint: the formula for calculating the area of a triangle is 1/2 times the base times the height) 6. 9. 13.5 33.75 P. P.
QUESTION 28 You are the Minister of Trade for a small island country in the South Pacific with the following monthly production possibilities curve: 500 450- 400 350 300+ 250 200 150 100 50 ↑lemonade 500 450 400 350 300 250 200 150 100 You are negotiating a deal with a neighboring island that has the following monthly PPC: 50 100 150 200 250 300 350 400 pias ↑lemonade 50+ 50 100 150 200 250 300 350 400 Refer to the graphs above. Both countries specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell them 160 bottles of lemonade in exchange for 100 pizzas. After the trade, your country has a total of bottles of lemonade and pizzas. A. 400; 100. B. 400; 200. O C. 160; 200. ++ pizzas D. 240; 100.