(Use Table 1) Harold has a comparative advantage in and Wilhelmina has a comparative advantage in Table 1 * Harold Wilhelmina Coconuts Fish Coconuts Fish Output per day 2 1 1 1) fish, fish 2) coconuts, fish 3) coconuts, coconuts 6,

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We can conclude from the table that Spain has a comparative advantage in the production of tables. [True or False] Explain your answer.

Comparative Advantage: Suppose that the United States and Switzerland produce bicycles and chocolate bars: Bicycles per worker/year Chocolate Bars per worker/year 10,000 20,000 Switzerland 1 United States 5 a. The United States has an absolute advantage in both bicycles and chocolate bars, but which country has a comparative advantage producing bicycles? Chocolate bars? b. Assume there are 10,000 workers. Draw the production possibilities frontier for the United States prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on the U.S. production possibilities frontier (put bicycles on the x-axis and millions of chocolate bars on the y-axis). c. Assume there are 10,000 workers. Draw the production possibilities frontier for Switzerland prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on Switzerland's…

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5. The price of trade Suppose that Croatia and Wales both produce ale and broccoli. Croatia's opportunity cost of producing a bushel of broccoli is 5 kegs of ale while Wales's opportunity cost of producing a bushel of broccoli is 10 kegs of ale. By comparing the opportunity cost of producing broccoli in the two countries, you can tell that production of broccoli and has a comparative advantage in the production of ale. has a comparative advantage in the Suppose that Croatia and Wales consider trading broccoli and ale with each other. Croatia can gain from specialization and trade as long as it receives more than of ale for each bushel of broccoli it exports to Wales. Similarly, Wales can gain from trade as long as it receives more than of broccoli for each keg of ale it exports to Croatia. Based on your answer to the last question, which of the following prices of trade (that is, price of broccoli in terms of ale) would allow both Wales and Croatia to gain from trade? Check all that…

QUESTION 3 (Figure: The Production Possibilities for Taiwan and Japan) Use Figure: The Production Possibilities for Taiwan and Japan. Taiwan has a comparative advantage in producing. while Japan has a comparative advantage in producing. Quantity of microchips 1,600 1,200 1000 600 400 200 Talwan rain boots; microchips 800 1,200 Quantity of rain boots Quantity of microchips 1,400 Oª O b. both microchips and rain boots; neither good Oo microchips; rain boots i Od. neither good; both microchips and rain boots 1,200 1,000 800 400 400 200 400 Japan 100 1,00 Quantity of rain boots

Given the above graph, what are the imports and exports for this country?       a- It imports 25 computers and exports 275 shoes       b- It exports 25 computers and imports 275 shoes       c- It imports 125 computes and exports 350 shoes       d- It exports 125 computes and imports 350 shoes

Assume the table below shows the quantities of wine and cheese that a worker can produce in an hour in France and Italy. Wine (bottles) 9 4 has an absolute advantage producing wine and has a comparative advantage producing wine and France Italy has an absolute advantage producing cheese. Cheese (ounces) 19 29 has a comparative advantage producing cheese.

Candonia has a comparative advantage in the production of    , while Desonia has a comparative advantage in the production of    . Suppose that Candonia and Desonia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of