QUESTION 3(Figure: The Production Possibilities for Taiwan and Japan) Use Figure: The Production Possibilities for Taiwan and Japan. Taiwan has a comparativeadvantage in producing. while Japan has a comparative advantage in producing.Quantity ofmicrochips1,6001,2001000600400200Talwanrain boots; microchips8001,200Quantity of rain bootsQuantity ofmicrochips1,400OªO b. both microchips and rain boots; neither goodOo microchips; rain boots iOd. neither good; both microchips and rain boots1,2001,000800400400200400Japan1001,00Quantity of rain boots

A country enjoys a comparative advantage in the production of a product over another country when…

QUESTION 3 (Figure: The Production Possibilities for Taiwan and Japan) Use Figure: The Production Possibilities for Taiwan and Japan. Taiwan has a comparative advantage in producing while Japan has a comparative advantage in producing Quantity of microchips 1,600 1.400 1,200 L 800 200 Talwan 100 1,200 Quantity of rain boots Quantity of microchips rain boots; microchips Ob. both microchips and rain boots; neither good Oc. microchips; rain boots O d. neither good; both microchips and rain boots LAN 1,000 A 400 400 Japan NOO 100 Quantity of rain boots

QUESTION 3 (Figure: The Production Possibilities for Taiwan and Japan) Use Figure: The Production Possibilities for Taiwan and Japan. Taiwan has a comparative advantage in producing while Japan has a comparative advantage in producing Quantity of microchips 1,600 1.400 1,200 L 800 200 Talwan 100 1,200 Quantity of rain boots Quantity of microchips rain boots; microchips Ob. both microchips and rain boots; neither good Oc. microchips; rain boots O d. neither good; both microchips and rain boots LAN 1,000 A 400 400 Japan NOO 100 Quantity of rain boots

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 2CQQ

See similar textbooks

Similar questions

Geppetto and Lewis decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules. Production Possibilities Schedules Geppetto Puzzles 100 80 Puppets e 10 20 30 40 50 6. Which producer has the comparative advantage in producing puzzles? 401 8 Puppets 0 6 12 18 Lewis Geppetto Puzzles 40 32 O Lewis O Geppetto 24 Leuds 0 b. Which producer has the comparative advantage in producing puppets? c. If both producers decided to trade with each other to stock their toy stores, the terms of trade that would benefit both Geppetto and Lewis (1 puppet = x puzzles) would be between 0 0.80 and 3.33 puzzles per puppet. 0125 and 0.30 puzzles per puppet. 0 0.80 and 0.30 puzzles per puppet 01.25 and 3.33 puzzles per puppet. m D
24 of 38 For each hour worked, a U.S. worker can produce 4 loaves of bread, or 2 tons of steel. Canadian workers can produce 2 loaves of bread, or 1 ton of steel per hour. The information indicates that: O A. Canada has comparative advantage in steel, and the U.S. has comparative advantage in bread. O B. neither country has comparative advantage in steel or bread. O C. Canada has comparative advantage in bread, and the U.S. has comparative advantage in steel. O D. the U.S. has comparative advantage in both steel and bread. Unsure
BASIL (Millions of pounds) 96 84 72 60 48 36 24 12 0 0 PPF I I Glacier 36 A 12 24 48 60 72 ALMONDS (Millions of pounds) 84 96 (?) Glacier has a comparative advantage in the production of production of BASIL (Millions of pounds) 96 84 72 60 48 36 24 12 0 0 PPF 1 12 Rainier basil comparative advantage. After specialization, the two countries can produce a total of of basil. A 24 ALMONDS (Millions of pounds) 36 48 60 72 84 96 almonds while Rainier has a comparative advantage in the . Suppose that Glacier and Rainier specialize in the production of the goods in which each has a million pounds of almonds and million pounds I
Wagons Tricycles James 16 32 Click to select your answer The table above shows the output per week of two people, James and Lucy. They can either devote their time to making wagons or making tricycles. Which of the following statements true? O A. Lucy has a comparative advantage in making both products. O B. Lucy has a comparative advantage in making tricycles and James in making wagons. O C. James has a comparative advantage in making both products. O D. Lucy has a comparative advantage in making wagons and James in making tricycles. Lucy 18 24
6. Refer to the following table. Assume there are two workers in Mexico and three workers in the United States. United States Mexico Bicycle wheels produced per hour Pounds of rice produced per hour 7 5 10 a. Determine the pretrade relative price of bicycle wheels in Mexico and the United States. b. Given your answer in part (a), which country has a comparative advantage in the production of rice? c. What is the lowest international relative price of bicycle wheels Mexico is willing to accept in order to engage in trade with the United States? Explain why
QUESTION 7 65+ 60+ 55 50 45 40 282828 35+ 30 25 20 15 10 5+ Cay China's PPF + 5 10 15 20 25 30 35 40 45 50 55 Computer OA. 40 cars and 20 computers B. 40 cars and zero computers C. 20 cars and 20 computers 个 Cor 65+ 60- 55 50+ 45+ Refer to figures above. Suppose that China and Japan fully specialize in the goods in which they have a comparative advantage. Trade is then initiated between the two countries and 20 units of cars are exchanged for 20 units of computers. How many units of cars and computers will China be able to consume after trade? D.40 cars and 40 computers 40- 35+ 30 25- 20 15 10- 5 Japan's PPF 5 10 15 20 25 30 35 40 45 50 55 60 Computer
Poland requires 4 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. The Czech Republic requires 6 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. Suppose that Poland has 1,000 hours of labor and that it completely specializes according to its comparative advantage. How many units of which product will it produce? 250 tons of coal 1,000 bushels of wheat O100 bushels of wheat 4,000 tons of coal One of the main reasons for China to actively invest in foreign companies is to enhance the competitiveness of Chinese firms globally. take advantage of low wages in foreign countries. Omake best use of its technological expertise in the world market. meet the growing demand of the high population in China.
2. Refer to the following table. Assume there are two workers in Chile and three workers in the United States Chile United States Bottles of wine produced per hour Pounds of rice produced per hour | Comparative advantage 7 5 5 10 ? ? (a) Determine the pretrade relative priece of wine in Chile and the United States. (b) Given your answer in part (a), which country has a comparative advantage in the production of rice? (c) What is the lowest international relative price of wine Chile is willing to accept in order to engage in trade with the United States? Briefly explain why.
A9 Which nation has the absolute advantage in the production of radios? And, which nation has the comparative advantage in the production of radios?
Question 13 England France Hours Needed to Hours Needed to Make 1 Unit of Make 1 Unit of Cheese 1 4 What is true about this situation? Wine 5 2 Number of units Produced in 40 Hours Cheese 40 10 O The opportunity cost for 1 Cheese for England is 5 units of wine O England has the absolute advantage in producing both goods O France will export Cheese because it has comparative advantage in making Cheese O England will export Cheese because it has comparative advantage in making Cheese O France will export Wine because it has absolute advantage in making Wine O England will export Wine because it has absolute advantage in making Wine Number of units Produced in 40 Hours Wine 8 20
1. Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000. a) Which country has the comparative advantage in food? In fuel? Explain. b) Which good(s) should each country specialize in? c) Discuss the benefits of specialization for each country.
Figure 3-8 Chile's Production Possibilities Frontier 20 soybeans 18 16 14+ 12 10 8 6 4 2 (in pounds) 2 + 4 6 8 10 12 14 16 18 20 coffee pounds) (in 20 soybeans 18 5550 16 14+ 12 10 8 6 4 2 (in pounds) Colombia's Production Possibilities Frontier both goods and import neither good. neither good and import both goods. 2 4 6 8 10 12 14 16 18 20 coffee (in pounds, Refer to Figure 3-8. Chile should specialize in the production of coffee and import soybeans. soybeans and import coffee.