Question in image. Been stuck on this for hours. Thanks for your help! Assume efficient production. Auslaug takes 6.7 hours to weave one blanket or 10 hours to produceone bear skin. Siggy takes 4 hours to weave one blanket or 5 hours to produce one bear skin.Consider the exchange rate between bear skins and blankets when Auslaug and Siggy trade,specifically, the number of bearskins traded for 1 blanket. What is the minimum number of bear skinsAuslaug is willing to accept for 1 blanket?1.5er0.67 margin of error +/- 10%Auslaug has the comparative advantage in blanket production. She will produce blankets andtrade them for bearskins. The minimum number of bearskins she will accept for one blanket isher OC of another blanket. If it were not the case, she could produce the bearskin by herselfand be better off.

Given, that Auslaug takes hours to weave one blanket or hours to produce one bear skin.Siggy takes…

Answered: Assume efficient production. Auslaug…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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The United States has an absolute advantage in the production of many things. Why is it sometimes more efficient to import items in which the United States has an absolute advantage? Do i fast plz
3. What are some differences between the gift economy and the exchange economy?
In a world where the only goods are cell phones and cereal: Jennereelam can produce: 80m kilos of cereal, and 200k cell phones, while Jonathannadu can produce: 30m kilos of cereal, and 15k cell phones. Even though Jennereelam is a bigger economy and can produce more of each product than Jonathannadu, this guy named Ricardo insists that they will both benefit if they trade. What is Ricardo's argument called, and why does he make the claim?
A French worker has 100 shirts or 20 in a yeara computer can produce, while a British worker can produce 100 shirtsor let's say it can produce 10 computers.- In this direction, as in question l, both the French andProduction possibilities for the British in Tabular Formyour show.- France and England each have 100 workerslet's assume. Each country, half of its employees in each sectorif it does, how many shirts and computers does each country produce?What is the total output of the shirt and computer in the worldmuch?- Now compare all employees of each countrythat he specialises in the industry in which he has the upper handlet's assume. In this case, shirts and computershow much is the total output in the world?
a) Compute the ratio of exports to imports for the total and for eachcategory of goods listed in the table. Add the ratios to the table (you can edit thetable by clicking on it. If by any chance this does not work for you, make yourown table and insert it here)
Consider the two countries of Syria and UAE. A business man wants to do trade between the two countries. If Syria produces maximum of 2 million kilograms of tomato and maximum of 4000 kilograms of Halwa, then draw the production possibility frontier What is the absolute value of the slope of this production possibility frontier? In the 2-factor, 2-good Heckscher-Ohlin model, why the two countries are different? What will happen when Syria's currency depreciates? What type of contract is he involved if he negotiates over the exchange rate for 30 days in future?
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