The economies of North Korea and India are: different in that North Korea has a command system, while India has a market system. similar in that they are both basically command systems. similar in that they are both basically market systems. different in that India has a command system, while North Korea has a market system.
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- Ghana imports and exports food from and to neighbouring Côte d'Ivoire. The latter nation is very similar to Ghana in most ways. It has a similar environment, a similar level of education, and similar institutional background. Would you argue that trade between the two countries can be explained by comparative advantage? Why or why not? Ghana also exports food to Switzerland. The latter nation is very different to Ghana in most ways. Would you argue that trade between the two countries can be explained by comparative advantage? Why or why not?Ghana imports and exports food from and to neighbouring Côte d'Ivoire. The latter nation is very similar to Ghana in most ways. It has a similar environment, a similar level of education, and similar institutional background. Would you argue that trade between the two countries can be explained by comparative advantage? Why or why not? Ghana also exports food to Switzerland. The latter nation is very different to Ghana in most ways. Would you argue that trade between the two countries can be explained by comparative advantage? Why or why not? Explain import substitution industrialisation and how it can affect Ghana. What role does learning by doing play and when does it make sense for the government to interfere? Ghana’s president’s ISI strategy is to ask Switzerland to adopt a voluntary export restraint (VER). He believes that this is likely to increase Ghanaian welfare. Using two diagrams (one for each country) explain the Ghanaian welfare consequences of this policy.If Italy is said to have an absolute advantage over the United States in the production of wheat, this means that, given the same resources, the United States must have a comparative advantage over Italy in the production of wheat. Italy must have an absolute advantage over the United States in producing all goods. the United States must have an absolute advantage in producing some good other than wheat. Italy can produce more wheat than the United States. Italy has an absolute advantage in all goods that are complements to wheat.
- Consider a model with two countries, France and Germany. France exports wine to Germany, and Germany exports beer to France. In each country, the demand for wine is given by the demand curve Q D = 100 - P W, where Q D is the quantity demanded and P W is the price of wine. In each country, the demand for beer is given by the same demand curve, i.e., Q D = 100 – P B , where Q D is the quantity demanded and P B is the price of beer. The supply of wine in France is given by Q S = 2P W, where Q S is the quantity supplied, and the supply of wine in Germany is given by Q S = P W. The supply of beer in France is given by Q S = P B , and the supply of beer in Germany is given by Q S = 2P B . Suppose the government of France imposes a $10 per unit import tax on beer. Find the world price of beer, the domestic price in France, and the tariff revenue collected by the French government under this policy.If a country opens up for trade, and it ends up importing a good, the net effect of importing that good will be a gain for the economy. the country could end up having a net gain or loss from importing that good, depending on how elastic the curves are. the net effect of importing that good will be a loss for the economy. the country will have to export some other good in order to compensate for the losses incurred by importing this good.Consider a hypothetical world with two countries: Country A and Country B. Each country has 45 workers, who produce cars and bicycles. If Country A shifts all its workers to one good, it can produce 1,350 cars or 2,520 bicycles. Under the same conditions, Country B can produce 1,710 cars or 2,880 bicycles. Therefore, Country B has an absolute advantage in producing both goods. Nevertheless, the two countries decide to trade, so each shift production to their areas of comparative advantage. Determine which good Country A will specialize in. Then, calculate the quantity of this good the country will produce after trade if only 40 workers are involved. If necessary, round any intermediate calculations to two decimal places and your final answer to the nearest whole number.
- People in the U.S. state of Iowa eat both corn and potatoes. It is technically possible for farmers to grow both corn and potatoes in Iowa, yet almost no farmers grow potatoes. Instead, every year, Iowa exports corn and imports potatoes from the U.S. state of Idaho, where farmers specialize in potatoes. Which of the following principles of economic interaction best describes this scenario? Trade can make everyone better off. All costs are opportunity costs. When markets do not achieve efficiency, government intervention can improve overall welfare. There is a tradeoff between equality and efficiency.We know that in antiquity, China exported silk because no one in any other country knew how to produce this product. From this information we know that China had a comparative advantage in silk. no comparative advantage could exist because the technology was not diffused. China exported silk for political reasons even though it had no comparative advantage. China had an absolute advantage, but not a comparative advantage in silk. China was unable to profit by exporting silk because it was unknown in the rest of the world.The following graph shows a fictional world economy that consists of only two countries, Greenberg and Baxton. Both countries produce airplanes under increasing-cost conditions. Note that the left-hand part of the diagram is a mirror image of a standard supply-demand diagram, and therefore the supply and demand curves slope in directions opposite their usual directions. Greenberg Baxton 30 27 24 +18 + + 15 12 In the absence of trade (that is, autarky), the equilibrium price in Greenberg is $ and the equilibrium price in Baxton is |. (Hint: Enter all monetary values in full. For example, $7,000 rather than $7.) In the absence of trade, which of the following statements is correct? O Greenberg has the comparative advantage in production of airplanes. O Greenberg and Baxton are equally good at producing airplanes. O Baxton has the comparative advantage in production of airplanes. Now suppose both countries open up to international trade with each other. For each country, use the previous…
- If Argentina has an absolute advantage in the production of wheat and Chile has an absolute advantage in the production of copper, then A) neither country has anything to gain from specialisation and trade. B) it is reasonable to expect that specialisation and trade will benefit both countries. C) it is reasonable to expect that trade will benefit both countries, but specialisation will not. D) it is reasonable to expect that specialisation will benefit both countries, but trade will notSuppose that Glacier and Denali 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 6 million pounds of corn for 6 million pounds of pistachios. This ratio of goods is known as the price of trade between Glacier and Denali.The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage, Group of answer choices only the production of both goods will increase. the production and consumption of both goods will increase. only the consumption of both goods will increase. only the production of wheat will increase.