Suppose that Portugal and Germany both produce fish and cheese. Portugal's opportunity cost of producing a pound of cheese is 3 pounds of fish while Germany's opportunity cost of producing a pound of cheese is 11 pounds of fish. By comparing the opportunity cost of producing cheese in the two countries, you can tell that production of cheese and has a comparative advantage in the production of fish. has a comparative advantage in the Suppose that Portugal and Germany consider trading cheese and fish with each other. Portugal can gain from specialization and trade as long as it receives more than of fish for each pound of cheese it exports to Germany. Similarly, Germany can gain from trade as long as it of cheese for each pound of fish it exports to Portugal. receives more than Based on your answer to the last question, which of the following terms of trade (that is, price of cheese in terms of fish) would allow both Germany and Portugal to gain from trade? Check all that apply. 13 pounds of fish per pound of cheese 6 pounds of fish per pound of cheese O2 pounds of fish per pound of cheese 4 pounds of fish per pound of cheese

Suppose that Portugal and Germany both produce fish and cheese. Portugal's opportunity cost of producing a pound of cheese is 3 pounds of fish while Germany's opportunity cost of producing a pound of cheese is 11 pounds of fish. By comparing the opportunity cost of producing cheese in the two countries, you can tell that production of cheese and has a comparative advantage in the production of fish. has a comparative advantage in the Suppose that Portugal and Germany consider trading cheese and fish with each other. Portugal can gain from specialization and trade as long as it receives more than of fish for each pound of cheese it exports to Germany. Similarly, Germany can gain from trade as long as it of cheese for each pound of fish it exports to Portugal. receives more than Based on your answer to the last question, which of the following terms of trade (that is, price of cheese in terms of fish) would allow both Germany and Portugal to gain from trade? Check all that apply. 13 pounds of fish per pound of cheese 6 pounds of fish per pound of cheese O2 pounds of fish per pound of cheese 4 pounds of fish per pound of cheese

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that one day of labor in each country produces the following quantities of fish and cheese: 1. Does France have a comparative advantage in the production of fish, cheese, or neither? Explain. 2. Does Japan have a comparative advantage in the production of fish, cheese, or neithter? Explain. 3. Suppose the countries decide to trade with each other—1 ton of cheese for 3 tons of fish. Would this trade be advantageous to both countries? Explain. Country Fish (tons) Cheese (tons) France 80 40 Japan 200 50
Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Schnitzel (Pounds) Wine (Bottles) Schnitzel (Pounds) 8 15 1 6 1 12 2 4 2 9 3 3 6 4 4 3 Who has the comparative advantage in producing wine and who has the comparative advantage in producing schnitzel? O A. Germany has a comparative advantage producing wine and schnitzel. O B. France has a comparative advantage producing schnitzel and Germany has a comparative advantage producing wine. O C. France has a comparative advantage producing wine and Germany has a comparative advantage producing schnitzel. O D. France has a comparative advantage producing wine and schnitzel. O E. Neither has a comparative advantage producing wine or schnitzel.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week.
Suppose that Bob and Jimmy both have 10 hours of time that they can use to do one of two things: make pasta or make hamburgers. Bob can make 15 hamburgers in one hour and 3 plates of pasta in one hour. Jimmy can make 8 hamburgers in one hour and 2 plates of pasta in one hour. Who has comparative in the production of hamburgers? Who has comparative advantage in the production of pasta? If Bob and Jimmy trade, who should specialize in producing hamburgers and who should specialize in producing pancakes? Give an example of terms of trade at which mutually beneficial trade would be possible between Bob and Jimmy.
The United States imports televisions from Japan and Japan imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true that Group of answer choices the United States has comparative advantage in producing computer chips. the United States has comparative advantage in producing televisions. the opportunity cost of producing computer chips in the United States is higher than that in Japan. the opportunity cost of producing televisions in Japan is higher than that in the United States.
Which country had an absolute advantage in the production of Machines? Calculate and explain which country has a comparative advantage in the production of Machines and Cloth.
56 56 48 48 PPF 40 40 32 32 24 PPF 24 16 16 -- -- -- - 8 16 24 32 40 48 56 64 16 24 32 40 48 56 84 GRAIN (Millions of pounds) GRAIN (Millions of pounds) Maldonia has a comparative advantage in the production of while Lamponia has a comparative advantage in the production of Suppose that Maldonia and Lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of sugar and million pounds of grain. Suppose that Maldonia ánd Lamponia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 24 million pounds of grain for 24 million pounds of sugar. This ratio of goods is known as the price of trade between Maldonia and Lamponia. W SUGAR (MIlons of pounds) SUGAR (MIlions of pounds)
Pls explain each answer by calculations
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
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces pistachios will produce. million pounds per day and the country that produces chinos will produce million pairs per day.
Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Cheese (Pounds) 16 Wine (Bottles) Cheese (Pounds) 12 8. 4. 25 20 15 2 3 3 4 10 4 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. O B. France has a comparative advantage producing wine and cheese. OC. Germany has a comparative advantage producing wine and cheese. -OD. Neither has a comparative advantage producing wine or cheese. OE. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. Suppose that France is currently producing 1 bottle of wine and 12 pounds of cheese and Germany is currently producing 3 bottles of wine and 10 pounds of cheese. Then, assume instead that France and…
COFFEE (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF 1 Maldonia 36 30 POTATOES (Millions of pounds) 06 12 18 24 42 48 COFFEE (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF 1 0 6 Lamponia 18 42 12 24 30 36 POTATOES (Millions of pounds) 48 Consider the above two graphs which represent production possibilities. What are the comparative advantages? Maldonia has a comparative advantage in potatoes and Lamponia has a comparative advantage in coffee Maldonia has a comparative advantage in both goods O Lamponia has a comparative advantage in both goods O Maldonia has a comparative advantage in coffee adn Lamponia has a comparative advantage in potatoes