The following graph is the respective production possibility curves for the USA and South Korea. It shows there total output of medical devices and cars ina state of autarky (no trade), and it illustrates the gains that both countries can benefit from when they engage in trade.10,00010,0008,000 tc8,0006,0006,000Consumpfion wth trodeConsumplion wih trode4,0004,0002,0002,000D.1,0000.5 132.3Automobiles (millions)Automobiles (millions)(a) USA(b) South KoreaMedical DevicesAutomobiles (millions)USA4,0000.5 millionSouth Korea1,0002 millionAnswer the following questions utilizing the textbook and your lecture videos:1) What assumption in the production possibilities model may lead the model to overstate the gains from trade and cause the actual gains to be less thanpredicted by the model?2) Who gains from trade in this scenario? Who may be hurt by trade in this scenario?3) Do you think there is a role for the government to help those who are hurt by trade in this scenario?Medical DevicesMedical Devices

The following graph is the respective production possibility curves for the USA and South Korea. It shows there total output of medical devices and cars in a state of autarky (no trade), and it illustrates the gains that both countries can benefit from when they engage in trade. 10,000 10,000 8,000 8,000 6,000 6,000 Consumption wah trode Consumption wih trode 4,000 4,000 2,000 2,000 1,000 2 Automobiles (millions) Automobiles (millions) (a) USA O) South Korea Medical Devices Automobiles (millions) 0.5 million 2 million USA 4,000 South Korea 1,000 Answer the following questions utilizing the textbook and your lecture videos: 1) What assumption in the production possibilities model may lead the model to overstate the gains from trade and cause the actual gains to be less than predicted by the model? 2) Who gains from trade in this scenario? Who may be hurt by trade in this scenario? 3) Do you think there is a role for the government to help those who are hurt by trade in this scenario? Medical Devices Medical Devices

The following graph is the respective production possibility curves for the USA and South Korea. It shows there total output of medical devices and cars in a state of autarky (no trade), and it illustrates the gains that both countries can benefit from when they engage in trade. 10,000 10,000 8,000 8,000 6,000 6,000 Consumption wah trode Consumption wih trode 4,000 4,000 2,000 2,000 1,000 2 Automobiles (millions) Automobiles (millions) (a) USA O) South Korea Medical Devices Automobiles (millions) 0.5 million 2 million USA 4,000 South Korea 1,000 Answer the following questions utilizing the textbook and your lecture videos: 1) What assumption in the production possibilities model may lead the model to overstate the gains from trade and cause the actual gains to be less than predicted by the model? 2) Who gains from trade in this scenario? Who may be hurt by trade in this scenario? 3) Do you think there is a role for the government to help those who are hurt by trade in this scenario? Medical Devices Medical Devices

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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