ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- i need both answer urgent.arrow_forwardAfter reading the article, Amadeo, K. & Boyle. M (May 18th, 2021). International trade: Pros, cons, and effect on the economy. the balance, provide an advantage and a disadvantage of international trade. From the article and in your opinion, how do these impact the economy? https://www.thebalancemoney.com/international-trade-pros-cons-effect-on-economy-3305579arrow_forwardfrom the image, can you help answer whether the trade action for Felicidad: jeans is import 18 or export 18, Felicidad: corn import 54 or export 54, and Contente: jeans import 18 or export 18 and Contente: corn import 54 or export 54.arrow_forward
- 3. Gains from trade Consider two neighboring island countries called Contente and Euphoria. They each have 4 million labor hours available per month that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans Corn Country (Pairs per hour of labor) (Bushels per hour of labor) Contente 16 Euphoria 20 Initially, suppose Contente uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce corn, while Euphoria uses 3 million hours of labor per month to produce jeans and 1 million hours per month to produce corn. Consequently, Contente produces 8 million pairs of jeans and 48 million bushels of corn, and Euphoria produces 15 million pairs of jeans and 20 million bushels of corn. 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 corn…arrow_forward4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Yosemite and Denali. Both countries produce peas and pistachios, each initially (i.e., before specialization and trade) producing 24 million pounds of peas and 12 million pounds of pistachios, as indicated by the grey stars marked with the letter A. PISTACHIOS (Millions of pounds) 64 56 48 40 32 24 16 8 0 0 PPF 8 Yosemite 24, 12 16 24 32 40 48 PEAS (Millions of pounds) 56 64 ? PISTACHIOS (Millions of pounds) 64 56 48 40 32 24 16 8 0 0 PPF 8 Denali 16 24 32 40 48 PEAS (Millions of pounds) 56 64 Yosemite has a comparative advantage in the production of while Denali has a comparative advantage in the production of . Suppose that…arrow_forward1) https://openstax.org/books/principles-macroeconomics-2e/pages/20-1-absolute-and-comparative-advantage 2) https://openstax.org/books/principles-macroeconomics-2e/pages/20-2-what-happens-when-a-country-has-an-absolute-advantage-in-all-goods 3) https://openstax.org/books/principles-macroeconomics-2e/pages/20-4-the-benefits-of-reducing-barriers-to-international-trade please I need a short summary of these articlesarrow_forward
- Sam can brew 5 gallons of root beer in an hour or he can make 4 pizzas in an hour. Ben can brew 7 gallons of root beer in an hour or he can make 5 pizzas in an hour. Who has an absolute advantage in making pizza? [ Select ] ["Ben", "Sam"] Who has a comparative advantage in making pizza? [ Select ] ["Sam", "Ben"]arrow_forwardI need help from D to Farrow_forwardThe table below shows the export and import values of automobiles, pharmaceuticals, and clothing in Country A and Country B. Country A Automobiles Exports ($Billions) Imports ($Billions) 20 40 Pharmaceuticals 30 30 40 Clothing Country B Exports ($Billions) Imports ($Billions) Automobiles 0 Pharmaceuticals 40 Clothing 45 The IIT share is zero for in Country A and for O pharmaceuticals; pharmaceuticals O clothing; pharmaceuticals O automobiles: pharmaceuticals Oclothing; automobiles 0 20 40 35 in Country B.arrow_forward
- The small happy Kingdom of Pollyanna does not trade with the rest of the world, but uses U.S dollars for its currency. Its domestic price of tofu is $1 per pound and the Kingdom produces and consumes 5 tons of tofu. The world price of tofu is just $0.50 per pound. At this price, the Kingdom would produce only 2 tons of tofu and would consume 8 tons of tofu, and thus have to import 6 tons of tofu. What is the deadweight loss in the tofu market associated with the Kingdom staying closed to trade? (Note: 1 ton = 2000 lbs.)arrow_forwardCompany A can borrow yen at 15.5 percent and dollars at 14.5 percent. Company B can borrow yen at 16.3 percent and dollars at 14.767 percent. At what interest rates, do company A and B respectively have a comparative advantage? B has comparative advantage in both markets. OA: 15.5 percent, B: 14.767 percent A has a comparative advantage in both markets. A: 14.5 percent, B: 16.3 percentarrow_forwardackground information: A worker in the United States and a worker in China can each produce 1,000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week, and a worker in China can produce 100 cell phones in a week. Answer the following questions based on this information.Part A: If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce? What would be the total number of jeans and cell phones produced by the two countries combined? (Show your work.)Part B: Calculate the opportunity cost of producing jeans for each country. (Show your work.)Part C: Calculate the opportunity cost of producing cell phones for each country. (Show your work.)Part D: Determine how many jeans should be produced by each nation. (Show your work). Part E: If each nation should specialize in producing jeans and cell phones, explain why; use economic terminology you have learned in this unit in your…arrow_forward
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