Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed to Make 1 Unit of Number of Units Produced in 40 Hours Cheese Bread Cheese Bread England 1 4 40 10 Spain 4 8 10 5 Refer to Table 3-5. England has a comparative advantage in the production of a. neither good and Spain has a comparative advantage in the production of both goods. b. bread.

Use the following information for the next two questions: the U.S. can produce 4 tons of potatoes per day or 2 tons of wheat per day. Ireland can produce 3 tons of potatoes per day or one ton of wheat. 17. The opportunity cost for Ireland producing one ton of potatoes is how many tons of wheat? а. one-fourth b. 1/3 с. 1 d. 3 The U.S. has the comparative advantage in producing potatoes. wheat. а. b. с. both. d. neither. It is possible to have a comparative advantage without having any absolute advantages. а. true b. false

In Bangladesh, it takes 300 labor hours to produce one TV set and 5 hours of labor to produce one unit of textiles. The unit labor costs for the same goods in the U.S. are 100 labor hours to produce one TV and 2 labor hour to produce one unit of textiles. Tv Textiles 100 2 Bangladesh 300 5 U.S. Which country has an absolute advantage in the production of textiles? Which country has a comparative advantage in textiles? The * has an absolute advantage in the production of textiles as its unit labor costs are * than that of Bangladesh. The opportunity cost of textiles in the U.S is and in Bangladesh is * has a comparative advantage in textiles. Determine the range of international relative price of TV sets with respect to textiles. The range for the international relative price of the TV sets with respect to textiles is and

Please answer only if you are sure about the correct answers:

3

We can conclude from the table that Spain has a comparative advantage in the production of tables. [True or False] Explain your answer.

(Use Table 1) Harold has a comparative advantage in and Wilhelmina has a comparative advantage in Table 1 * Harold Wilhelmina Coconuts Fish Coconuts Fish Output per day 2 1 1 1) fish, fish 2) coconuts, fish 3) coconuts, coconuts 6,

Productivity of beer and wine in Germany and Chile Germany Chile Beer(cases) 75 30 Wine (cases)75 60

Do not use Ai

Answer th following: If Nation 2 is to enter trade. In what good will it specialize? Why? If Nation 2 is to specialize in the good of its comparative advantage, how much good X and good Y will Nation 2 produce? Suppose after specialization, Nation 2 exports 100 units of the good of its comparative advantage [your answer in 1], how much of X and Y will it consumer after trade Will Nation 2 enjoy welfare gains from trade? Provide evidence