The table below describes production possibilities for Mexico and Nigeria. Each number in the table shows the number of workers needed to produce one unit of the product. Country Shoes Glasses Mexico 10 12 Nigeria 18 5   Which country has an absolute advantage in producing Glasses? Which country has a comparative advantage in producing Glasses? Which country has a comparative advantage in producing Shoes?

Automobiles                 Computers                                                                                                                                                                                                                                                                                    USA                                  20                                 15                                                                                                                                                                                  Germany                           15                                    5                                                                                                                                                                                                                                                                                       if both countries produce according to the respective comparative advantages, what…

Explain the concept of comparative advantage and how it leads to gains from international trade.

If a country closes off to trade and notices that the number of firms in an industry doubles in size, what economic theory would help us explain this phenomenon? A. Stolper-Samuelson. B. Melitz. C. Ricardian. D. Cournot. Explain your answer in up to 200 words and using a diagram

You are watching the nightly news. A political candidate being interviewed says, "I'm for free trade, but it must be fair trade. If our foreign competitors will not raise their environmental regulations, reduce subsidiaries to their export industries, and lower tariffs on their imports of our goods, we should retaliate with tariffs and import quotas on there goes to show them that we won't be played for fools!" A) If a foreign country artificially lowers the cost of production for its producers with lax environmental regulations and direct subsidiaries and then exports the products to us, who gains and who loses in our country, producers or consumers? B) Continuing form part A above, does our country gain or lose? Why? C) If a foreign country subsidizes the production of a good exported to the United States, who bears the burden of their mistaken policy? D) What happens to our overall economic well-being if we restrict trade with a country that subsidizes its export industries?…

Study sheet:    Chapter 2: The Power of Trade and Comparative Advantage Absolute Advantage Comparative Advantage Opportunity Cost Production Possibilities Frontier Trade. How does specialization and trade make individuals and countries wealthier? Think about why countries benefit from foreign trade. Also consider a scenario where Country A is more productive than Country B at producing all goods. Why is it still in Country A’s best interest to trade with Country B?   Chapter 3: Supply and Demand Demand Curve and Factors that shift the Demand Curve Supply Curve and Factors that shift the Supply Curve Substitutes and Complements Normal Goods and Inferior Good Producer Surplus and Consumer Surplus   Chapter 4: Equilibrium: How Supply and Demand Determine Prices Surpluses and Shortages Equilibrium Price Equilibrium Quantity How does an outward shift in the demand curve affect equilibrium price and quantity? How does an inward shift in the demand curve affect equilibrium price and quantity?…

Here is what Sweden and Canada can produce: Country Tons of Food Tons of Metal Sweden 40,000 XXXXX Canada XXXXX 1,000 Sweden has a comparative advantage in metal The price of metal will be between 10 and 20 food, if these countries trade. How much metal can Sweden produce? If you think the answer is 17,000, then write 17000, not 17,000.

Producing socks is labor-intensive, while producing satellites is capital-intensive. If India hasabundant labor, and the U.S. has abundant capital,which good will the U.S. export? Is trade beneficial to textile laborers in the U.S.?

B and C please

Listen carefully to the podcast titled 'Is America losing faith in Free Trade?. What would help explain why support for trade liberalisation in places such as the United States has decreased in the past decade even though economists argue free trade is beneficial for the economy? The benefits and costs of trade are unequally distributed within society. The benefits of free trade tends to fall on people who are less well off, who either lose their jobs or lose wages to other countries which angers the wealthy investors. O The wage gap between high and low-skilled workers is closing which decreases levels of productivity. The benefits of free trade tend to fall on people who are less well off, who either lose their jobs or lose wages to other countries.