Suppose Italy can make either 1000 statues or 700 bottles of wine. Suppose the US can make either 100 statues or 900 bottles of wine. How should each specialize? A. Italy should produce statues and the US should produce wine. B. The US should produce statues and Italy should produce wine. C. Italy should produce both statues and wine. ernational Academy of Science. All Rights Reserved.

Suppose Italy can make either 1000 statues or 700 bottles of wine. Suppose the US can make either 100 statues or 900 bottles of wine. How should each specialize? A. Italy should produce statues and the US should produce wine. B. The US should produce statues and Italy should produce wine. C. Italy should produce both statues and wine. ernational Academy of Science. All Rights Reserved.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

image attached
1.Using the concept of free trade and the 3 free trade theories discussed in the class materials, explain the difference between absolute advantage and comparative advantage. Explain the difference between free trade and fair trade. Provide an example of your own household or work experience.
Refer to the table below. If Canada and Japan based their trade on comparative advantage, what would be the MAXIMUM number of airplanes that Canada could GAIN if it exports one car? COPYRIGHTED MATERIAL. NOT TO BE SHARED. Hours needed to make one unit: Cars Canada 40 Japan 50 1/12 of a plane 1/4 of a plane 1/3 of a plane 1 plane Airplanes 160 150 Amount produced in 2400 hours: Cars Airplanes 60 48 15 16
6
QUESTION 12 wine 88185432 90 80 70 60 50 40 30 20 PPF Portugal CPF 10 0 0 10 20 30 40 50 60 cloth wine 8818588 90 80 70- 60 +09 40 30- 20 England PPF CPF 10 0 0 10 20 30 40 50 60 cloth 12. If Portugal has a total of 90 man-hours of resources available for production, while England has only 30, what are the resource costs of wine and cloth? a) wine costs 1/2 man-hours/bottle and cloth costs 1/2 man-hours/yard in England. b) wine costs 1 man-hour/bottle and cloth costs 1 man-hour/yard in England. c) cloth costs 1 man-hours/yard and wine costs 1 man-hours/bottle in Portugal. d) wine costs 1/2 yards/bottle and cloth costs 2 bottles/yard in Portugal.
Comparing international trade with trade among the different states of the United States shows that a. All of the above are correct. b. there is no need to study international trade as a special subject. c. the basic reasons for trade are equally applicable within a country or among countries. d. the logic of international trade is quite different from that of intranational trade.
3. The table below shows output per hour worked in production of wheat and cloths in theUnited States and United Kingdom, respectively.US Wheat (bushels per hour) 12 Cloths (yards per hour) 6 UK Wheat (bushels per hour) 6Cloths (yards per hour) 18 Assess all the statements below and judge which of them is true and which is false.Provide a short justification for your assessment.a) The US has an absolute advantage in the production of wheat.b) The UK has an absolute disadvantage in the production of cloths.c) The opportunity cost of cloths in the US is one-half bushels of wheat.d) The UK has an absolute and comparative advantage in cloth, whereas the US a comparativeadvantage in wheat.e) There is no basis for trade between these two countries because the UK would benefit morethan the US.
42000 25 10 Max's PPF Good x EVERERA NO 30 21 Milly's PPF 1. What is the opportunity cost of producing one unit of Good Y for Max in terms of Good X? You must enter a number. Fractions will not be accepted. Enter a decimal if necessary. 2 x 4 2. What is the opportunity cost of producing one unit of Good X for Max in terms of Good Y? You must enter a number. Fractions will not be accepted. Enter a decimal if necessary. 5 x
3. Gains from trade Suppose there exist two imaginary countries, Everglades and Denali. Their labor forces are each capable of supplying four million hours per week that can be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can be produced by one hour of labor. Country Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) Everglades 5 20 Denali 8 16 Suppose that initially Denali uses 1 million hours of labor per week to produce shorts and 3 million hours per week to produce almonds, while Everglades uses 3 million hours of labor per week to produce shorts and 1 million hours per week to produce almonds. As a result, Everglades produces 15 million pairs of shorts and 20 million pounds of almonds, and Denali produces 8 million pairs of shorts and 48 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of…
B) Comparative Advantage 1. Country A has 100 workers and Country B has 100 workers. Every worker in Country A can produce 6 tons of wheat per year, or can produce 12 tons of corn per year. Every worker in Country B can produce 2 tons of wheat per year, or can produce 10 tons of corn per year. a. Which country has an absolute advantage in wheat? b. Which country has an absolute advantage in corn? c. Which country has a comparative advantage in wheat? d. Which country has a comparative advantage in corn? Suppose initially the countries do not trade and Country A has 50 workers producing corn and 50 producing wheat. Country B has 30 workers producing corn and 70 producing wheat. Fill out the following table: Country A Country B Corn Produced Wheat Produced Now the two countries trade with one another. e. What good does Country A specialize in? f. What good does Country B specialize in? If these countries have all workers produce the product that their country has a comparative advantage…
International Trade End of Chapter Problem Consider each argument for limiting international trade: • The national security argument suggests that national security requires that strategically important goods be produced domestically. • The infant industry argument suggests that protection can help infant industries develop. • The unfair competition argument suggests that anti-dumping laws prevent unfair competition. • The fair standards argument suggests that trade should not enable firms to skirt regulations. Determine which argument each statement is related to and whether the statement supports or opposes the argument. a. "Industries that are protected from foreign competition often never develop to a point where they can compete internationally." This statement יל opposes the infant industry argument. b. "If foreign importers do not meet U.S. requirements regarding child labor, safety, and the environment, they will have an unfair cost advantage over domestic firms." This…
Why are international negotiations important in order to reduce tariff rates worldwide? A. Special-interest groups cannot affect international negotiations. B. Large countries can impose policy restrictions on smaller countries. C. They help avoid trade wars. D. The world as a whole gains from free trade.