B) If the two nations enter a trade agreement, what are the maximum and minimum valuesGood 1 would trade for?C) If the two nations enter a trade agreement, what are the acceptable terms of trade for Good1?D) Give a specific example of a certain amount of good 1 trading for good 2. How much dideach nation profit from entering the trade agreement?ex. France trades 5 apples to Germany for 10 oranges.If France made 10 oranges, it would cost them 20 apples. They only had to give Germany 5apples (instead of 20 apples) for 10 oranges, so they profited by 15 apples.If Germany made 5 apples, it would cost them 17 oranges. They only had to give France 1oranges, so they profited by 7 oranges. Nation 1: ChinaGood 1: Smartphones@Given: China and Japan produce only two goods. They have the same fixed resources areequally efficient and both countries have constant opportunity costs between the two goods.in one month China can produce 180,000 smartphones or 40,000 tablets. Japan canproduce 120,000 smartphones or 30,000 tablets. Fill in the table below.NationsUSARussiaMax ProductionNation 2: JapanA) Graph the given information.Good 2: TabletsOpportunity CostOpportunity Cost

Comparative advantage is the skill set of an economy to produce goods at a lower opportunity cost.…

Nation 1: China Good 1: Smartphones Nations Given: China and Japan produce only two goods. They have the same fixed resources are equally efficient and both countries have constant opportunity costs between the two goods. in one month China can produce 180,000 smartphones or 40,000 tablets. Japan can produce 120,000 smartphones or 30,000 tablets. Fill in the table below. USA Russia Max Production Nation 2: Japan A) Graph the given information. Good 2: Tablets Opportunity Cost Opportunity Cost

Nation 1: China Good 1: Smartphones Nations Given: China and Japan produce only two goods. They have the same fixed resources are equally efficient and both countries have constant opportunity costs between the two goods. in one month China can produce 180,000 smartphones or 40,000 tablets. Japan can produce 120,000 smartphones or 30,000 tablets. Fill in the table below. USA Russia Max Production Nation 2: Japan A) Graph the given information. Good 2: Tablets Opportunity Cost Opportunity Cost

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 2PA

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Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
scenario Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.
Table 3-1 Farmer Rancher Labour hours needed to make 1 kilogram: Meat 9 3 Potatoes 3 4 Kilograms produced in 36 hours: Meat 4 12 Refer to Table 3-1. What does each producer have an absolute or comparative advantage in? Potatoes 12 9 The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat. The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes. The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes. The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat.
1.Suppose we have the following information about the productivity of industry in Japan and Korea. The data are the units of output per hour of work. Steel Televisions Japan 6 3 Korea 8 2 A Japanese worker can produce 6 units of steel or 3 televisions per hour. A Korean worker can produce 8 units of steel or 2 televisions per hour. Plot the production possibilities frontier for each country, assuming each country has only one worker and the worker works only one hour. To plot the frontier, plot the end points and connect them with a line. For example, Japan can produce 6 units of steel with its worker or 3 televisions. It can also allocate 1/2 hour to the production of each and get 3 units of steel and 1 1/2 televisions. What are the opportunity cost of a television in Japan and Korea? What are the opportunity cost of steel in Japan and Korea? Which country has a…
Nation 1: USA Good 1: Bicycles Nations Given: USA and Russia produce only two goods. They have the same fixed resources are equally efficient and both countries have constant opportunity costs between the two goods. in one month USA can produce 180,000 bicycles or 90,000 refrigerators. Russia can produce 160,000 bicycles or 80,000 refrigerators. Fill in the table below. USA Russia Max Production Nation 2: Russia A) Graph the given information. Good 2: Refrigerators Opportunity Cost Opportunity Cost
Submit All Question 18 of 20> The table shows the units of steel and personal computers a worker can produce per month in Germany and South Korea. Use this table to answer the question. Tons of steel Personal computers (PCs) Germany 40 South Korea 91 Which statement about absolute advantage is true? O South Korea has an absolute advantage in the production of both steel and PCs. O Neither country has an absolute advantage in the production of either good. O South Korea has an absolute advantage in the production of steel, whereas Germany has an absolute advantage in the production of PCs. Germany has an absolute advantage in the production of steel, whereas South Korea has an absolute advantage in the production of PCs. O Germany has an absolute advantage in the production of both steel and PCs. Unit 7- Chapter 1...xlsx Unit 7- Chapter 1.xlsx Topic 2 (2).docx O Topic 2 (1).docx Show all 11:09 PM 73 F SU prt sc delete end f12 6) 144 backspace -> unu Bock 9. R. enter pause ↑ shift ctri…
PISTACHOS (Milions of pounds) # 14 10 B PPF Yosemite 02 46 83 10 12 14 ALMONDS (Millions of pounds) Yosemite has a comparative advantage in the production of production of PISTACHOS (Milions of pounds) 16 14 10 PPF 2 4 10 12 ALMONDS (Milions of pounds) Rainier • a comparative advantage. After specialization, the two countries can produce a total of million pounds of almonds. ? , while Rainier has a comparative advantage in the Suppose that Yosemite and Rainier specialize in the production of the goods in which each has million pounds of pistachios and
42. In Canada, one labour hour can produce 6 bagels or 24 chairs In the United States, one comparative advantage in deciding what to produce and trade with Canada at a trade price abour hour can produce 14 bagels or 19 chairs. Suppose the United Stateates, one come chairs per bagel. For every, 36 units of the goods the United States produces an trade, what is the gains from trade in terms of the other goods? Answer: Units. IDO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS).
Table 3-3 Maria Courtney Labour hours needed to make one unit: Sweater 40 20 Coat 8 5 Amount produced in 40 hours: Sweater 1 2 Coat 5 8 Refer to Table 3-3. What does each of the two producers have a comparative or absolute advantage in? a Maria has an absolute advantage in coats, and Courtney has a comparative advantage in sweaters. Ob. Maria has an absolute advantage in both goods, and Courtney has a comparative advantage in coats. OC. Maria has an absolute advantage in sweaters, and Courtney has a comparative advantage in sweaters. Od. Maria has an absolute advantage in neither good, and Courtney has a comparative advantage in sweaters. CLEAR MY CHOICE
Eggs LO Ren 5 Bacon (oz.) 10 3 will consume with Specialization and Trade Eggs Bacon Eggs Bacon 75 250 0 400 Stimpy 9 270 30 360 The table above provides the quantity of eggs and bacon that Ren and Stimpy can produce in one hour. Use the table to answer the following questions. Be sure to fill in the blanks with numerics when dealing with numbers (i.e. write 1 instead of one). Assume complete specialization to compute production under specialization and trade. Autarky Suppose the terms of trade are 1 egg:1 oz. of bacon and 80 eggs are traded. Then Ren will consume nets him a gain of 0 A/ specialization and trade, which nets him a gain of A/ specialization and trade. A/ (number) ounces of bacon after (number) ounces of bacon. Stimpy (number) eggs, which A/ (number) eggs and A (number) ounces of bacon after
Draw a table showing Autarky price ratios for each country and a diagram for the consumption and production possibilities frontier in Autarky when Canada produces 2000 units of corn with all its labour resources or 8000 units of wool with all its labour resources, consumes 1000 of corn and 4000 of wheat. Brazil has 12000 units of labour available. It takes 6 hours to produce a unit of corn and 3 hours to produce a unit of wool. Brazil consumes 1200 corn and 1600 wool.