A) For the UK, what is opportunity cost of cheese and wine? What about for the Rest of the World (again, cost of cheese and wine)? B) Which country has the comparative advantage in Cheese? Wine? Given this, how much of each good does the UK choose to produce (given their labor supply)?
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- Which country has a comparative advantage in the production of wine?Y 100 Country A X Y 40 Country B 40 X 20 a) How much of Good Y will Country B produce if they specialize in their comparative advantage? 40 b) By themselves, if Country B produces 18 units of Y, what is the maximum amount they could produce of Good X? 18 c) If the terms of trade proposed are 5 X for 10Y, how much will Country B be able to consume of Good Y after trade if they specialize in their comparative advantage before trading? 40Suppose that Cambodia decides to become self-sufficient in bananas and even to export t In order to accomplish this, large tax incentives are granted to companies that will invest in banana production. Soon, the Cambodian industry is competitive and able to sell bananas at the lowest price anywhere. Does Cambodia have a comparative advantage? Why, or why not? What are the consequences for the overall economy?
- home cheese alc=1hr/kg wine alw=2hrs/gallon foreign cheese alc*=6hrs/kg wine alw*=3hrs/gallon Calculate the Home country's opportunity cost of producing cheese. In which product does the Home (Foreign* ) country has an absolute advantage? Show in which product does the Home (Foreign* ) country has comparative advantage? Calculate the relative supply (RS) With trade, what is the equilibrium range that the relative price of cheese to wine will settle? Supposing that the intersection of RS and RD occurs at PC /PW = 1, what is the implication?Country A Country B 200 corn 600 150 375 100 50 50 75100 150 200 cars 25 50 75 100 cars a) What is the opportunity cost of making cars in each country? Make clear how you find this and what it means. b) If the countries were to specialize and trade, which country should specialize in making cars? Why? c) If the countries specialize completely according to comparative advantage (i.e.each produces only what they have the comparative advantage in) what would be the total production of cars and corn? How does this compare to the total production at their original pre-trade production points? d) Suppose the country that specializes in making only cars trades with the country that makes no cars. The car-maker sends the other country as many cars as they were consuming before trade. How much corn could the corn-making country trade for these cars and have both countries be better off than they were before trade?Suppose Argentina (A) and Bolivia (B) only trade with each other and they both produce the same two goods: grocery (G) and fish (F). Given its resources, Argentina can produce either 2 units of grocery per day or 1 unit of fish; Bolivia can produce either 5 units of grocery or 4 units of fish. a. If there were no trade, what would be the local price of fish in each country, measured in units of grocery? b. If trade is allowed, which country will export fish and which country will export grocery (if any)? c. Suppose Argentina offers to buy fish from Bolivia for 1.20 units of grocery. Does Bolivia accept the trade? Why or why not? d. With trade, what are the bound of the price of fish, measured in units of grocery?
- 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. Calculate the opportunity cost of producing 80 additional radios in Malaysia. Which country has the comparative advantage in producing radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan. Calculate the opportunity cost of producing 10 additional tons of rubber in Malaysia. Which country has the comparative advantage in producing rubber? In what product should Japan specialize? In what product should Malaysia specialize?Suppose there are two countries Peru and Japan that produces 7,523 units ofFood or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5,000. d) Which country has the comparative advantage in food? In fuel? Explain. e) Which good(s) should each country specialized in?a) Determine which country has a comparative advantage in each good . b) If Country A and Country B each have 100 units of labour , calculate the maximum production of each good for both countries .
- A) Which producer has the comparative advantage in producing puzzles? Geppetto or Lewis B) Which producer has the comparative advantage in producing puppets? C) If both producers decided to trade with each other to stock their toy stores, which of the following is a range of terms of trade that would benefit both Geppetto and Lewis (1 puppet = x puzzles)? Please explain to me how to solve those questions. Don't just give me the answers. Thank you so much!c) Will both nations gain if 1 autos can be exchanged for 20 computers? d) Will both nations gain if 10 autos can be exchanged for 1 computers? e) Will both nations gain if 10 autos can be exchanged for 20 computers? f) What do your answers suggest about the effect of the terms of trade on the gains from trade for each nation and what a mutually beneficial terms of trade might be?#4. 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? #5. 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? #6. In this example, does each country have an absolute advantage and a comparative advantage in the same good?