Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible?   Kelly has a comparative advantage in repairing cars and David has a comparative advantage in cooking meals.          Kelly has an absolute advantage in repairing cars and David has an absolute advantage in cooking meals.       Kelly has a comparative advantage in repairing cars and in cooking meals.     David has an absolute advantage in repairing cars and in cooking meals.

Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below. United States Mexico Hamburgers (in tons) Tacos (in tons) Hamburgers (in tons) Tacos (in tons) 90 75 50 60 10 50 100 30 20 25 150 30 Which country has an absolute advantage in producing tacos? The United States Which country has a comparative advantage in producing tacos? Mexico Suppose the United States is currently producing 100 tons of hamburgers and 30 tons of tacos and Mexico is currently producing 20 tons of hamburgers and 25 tons of tacos. If the United States and Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of additional ton(s) of hamburgers can be produced for the two countries combined (enter a numeric response using an integer)

Explain why Japan exports automobiles, while the U.S. exports aircraft? Use the prior definitions of absolute and comparative advantage to assist with your answer.

Consider the following information: Country A's opportunity cost of producing vegetables is lower than Country B's. Country B's opportunity cost of producing electronics is lower than Country A's. Country A is absolutely better at producing both goods. If the two countries decide to specialize and trade then: O Each country will be able to produce and consume at a point outside their production possibilities frontier. O Each country will be able to consume at a point outside their production possibilities frontier. O Each country will be able to produce at a point outside their production possibilities frontier. O Each country's production possibilities frontier will shift outward. « Previous Next ASUS 17 6 8

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 Candonia and Sylvania. Both countries produce lemons and coffee, each initially (i.e., before specialization and trade) producing 18 million pounds of lemons and 9 million pounds of coffee, as indicated by the grey stars marked with the letter A. Candonia Sylvania 48 48 42 42 36 36 PPF 30 30 24 24 18 PPF 18 12 6. 6. 12 18 24 30 36 42 48 12 18 24 30 36 42 48 LEMONS (Millions of pounds) LEMONS (Millions of pounds) Candonia has a comparative advantage in the production of while Sylvania has a comparative advantage in the production of Suppose that Candonia and Sylvania cnocializo COFFEE (Millions of pounds) 12 COFFEE (Millions of pounds)

***Please look at the screenshot for graphs*** Fill in the charts below with values based on the two Production Possibilities Frontiers above. Motor Vehicle Production in the United States (in millions) Cars Trucks                                0                    4                      0     Motor Vehicle Production in Mexico (in millions) Cars Trucks                             0                              2                           0   Which country has the absolute advantage in producing cars?  Which country has the absolute advantage in producing trucks?  Which country has the comparative advantage in producing cars?  Which country has the comparative advantage in producing trucks?  Should these two countries trade?  Why or Why not?

Assume our standard model. It takes Andreas 25 minutes to knit a scarf and 50 minutes to knit a hat. It takes Katya 8 minutes to knit a scarf. If neither has a comparative advantage in scarves, then how many minutes does it take Katya to knit a hat?

Suppose that Spain and Switzerland both produce oil and cheese. Spain's opportunity cost of producing a pound of cheese is 4 barrels of oil while Switzerland's opportunity cost of producing a pound of cheese is 10 barrels of oil. By comparing the opportunity cost of producing cheese in the two countries, you can tell that    has a comparative advantage in the production of cheese and    has a comparative advantage in the production of oil.   Suppose that Spain and Switzerland consider trading cheese and oil with each other. Spain can gain from specialization and trade as long as it receives more than    of oil for each pound of cheese it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than    of cheese for each barrel of oil it exports to Spain.   Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of oil) would allow both Switzerland and Spain to gain from…

Suppose that Portugal and Germany both produce rye and shoes. Portugal's opportunity cost of producing a pair of shoes is 4 bushels of rye while Germany's opportunity cost of producing a pair of shoes is 10 bushels of rye. By comparing the opportunity cost of producing shoes in the two countries, you can tell that    has a comparative advantage in the production of shoes and    has a comparative advantage in the production of rye.   Suppose that Portugal and Germany consider trading shoes and rye with each other. Portugal can gain from specialization and trade as long as it receives more than    of rye for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than    of shoes for each bushel of rye it exports to Portugal.   Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of rye) would allow both Germany and Portugal to gain from trade? Check all…

The production possibilities frontier (PPF) for Honduras and Brazil, representing hypothetical levels of production, are shown in the graphs. Assume that, without trade, each country is initially producing and consuming at point A on its PPF curve. Suppose these countries decide to trade. Each country will specialize in the production of the good for which it has a comparative advantage. Assume the countries agree to trade. The terms of trade are 6000 tons of bananas for 4000 tons of steel. Move the post‑trade consumption point for each country to reflect their post‑trade consumption. Which good will each country produce? Honduras will produce bananas and Brazil will produce steel. Brazil will produce both bananas and steel. Honduras will produce both bananas and steel. Honduras will produce steel and Brazil will produce bananas.