Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 15, Problem 16SQ
To determine
The implication of the lower
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What is the term for a situation in which a country can produce a good at a lower opportunity cost than another country? A. Absolute advantage B. Comparative advantage C. Opportunity advantage D. Trade advantage
If country ABC can produce a unit of good 1
by sacrificing fewer units of good 2
than can country XYZ, it is correct to say that country ABC
A.
has
a comparative
advantage in producing good 1.
B.
has
an absolute
advantage in producing good 1.
C.
will not wish to trade good 1 with country XYZ.
D.
will
import
good 1.
Why don't countries specialize in the production
of just a few goods for which they have a
comparative advantage? a. In most cases,
increasing opportunity costs would accompany
the continually increasing production of a
product specialist. b. In most cases, resource
drains would accompany the continually
increasing production of a product specialist. c.
Doing so would limit innovation in other
industries. d. Doing so would limit innovation in
the core industries, because there would be little
incentive for it.
Chapter 15 Solutions
Micro Economics For Today
Ch. 15.4 - Prob. 1GECh. 15.6 - Prob. 1GECh. 15 - Prob. 1SQPCh. 15 - Prob. 2SQPCh. 15 - Prob. 3SQPCh. 15 - Prob. 4SQPCh. 15 - Prob. 5SQPCh. 15 - Prob. 6SQPCh. 15 - Prob. 7SQPCh. 15 - Prob. 8SQP
Ch. 15 - Prob. 9SQPCh. 15 - Prob. 10SQPCh. 15 - Prob. 11SQPCh. 15 - Prob. 1SQCh. 15 - Prob. 2SQCh. 15 - Prob. 3SQCh. 15 - Prob. 4SQCh. 15 - Prob. 5SQCh. 15 - Prob. 6SQCh. 15 - Prob. 7SQCh. 15 - Prob. 8SQCh. 15 - Prob. 9SQCh. 15 - Prob. 10SQCh. 15 - Prob. 11SQCh. 15 - Prob. 12SQCh. 15 - Prob. 13SQCh. 15 - Prob. 14SQCh. 15 - Prob. 15SQCh. 15 - Prob. 16SQCh. 15 - Prob. 17SQCh. 15 - Prob. 18SQCh. 15 - Prob. 19SQCh. 15 - Prob. 20SQ
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- When a country has a comparative advantage in producing a certain good, A: the country should import that good. B: the country should produce just enough of that good for its own consumption. C:the country’s opportunity cost of that good is high relative to other countries’ opportunity costs of that same good. D: then specializing in the production of that good and trading for other goods could allow that country to consume at a point beyond its production possibilities frontierarrow_forwardIn order to obtain an efficient allocation of resources worldwide A. countries that have a lot of resources should ship resources to countries that do not have a lot of resources. B. no trade among countries should occur. C. countries that have a lot of resources should not trade since poorer countries cannot compete. D. each country should produce the good they have a comparative advantage in and then trade.arrow_forwardWORKING WITH NUMBERS AND GRAPHS 1 Using the data in the accompanying table, answer the Points on Production Possibilities following questions: Canada Italy a. For which good does Canada have a comparative advantage? b. For which good does Italy have a comparative advantage? Frontier Good X Good Y Good X GoodY 150 90 100 25 60 60 C 50 50 30 120 c. What might be a set of favorable terms of trade for the 75 180 two countries? d. Prove that both countries would be better off in the specialization-trade case than in the no-specialization-no-trade case.arrow_forward
- A typical Australian farmer can produce 8000 lbs of wheat or 500 lbs of potatoes per year. A typical Canadian farmer can produce 5000 lbs of wheat or 400 lbs of potatoes per year. Who has the comparative advantage in producing potatoes? a. Canada b. Australiaarrow_forwardA country should specialize in producing the goods for which a. it has the highest opportunity cost. b. it has an absolute advantage. c. it can produce a larger quantity than any other country. d. it has a comparative advantagearrow_forwardQuestion 1 a. Explain how comparative advantage and opportunity cost affect trade. b. In your opinion, state if you believe whether or not a country can have a comparative advantage in all goods.arrow_forward
- In order to obtain an efficient allocation of resources worldwide A. countries that have a lot of resources should ship resources to countries that do not have a lot of resources. B. no trade among countries should occur. C. countries that have a lot of resources should not trade since poorer countries cannot compete. D. each country should produce the good they have a comparative advantage in and then tradarrow_forwardWhat is opportunity cost of a T-shirt in Mexico? Show all your calculations. What is opportunity cost of a T-shirt in Egypt? Show all your calculations. Which country has comparative advantage in production of T-shirts? How do you know? Explain your answer.arrow_forwardWhich country has the absolute advantage in production of Good A? Group of answer choices Country Y Country X Neither country has an absolute advantage of producing Good Aarrow_forward
- Each country should specialize in producing that good for which it a. has a comparative advantage b. has an absolute advantage c. it has a higher opportunity costarrow_forwardCan food security include the importation of food? a. Yes, if the population is willing to pay higher prices for exotic foods. b. No, the Communist legacy requires modern countries to reject international food trade. c. No, self-sufficiency is always preferable to importing food. d. Yes, if a country has a highly competitive global economy and can afford to import food.arrow_forwardIf France is said to have an absolute advantage over Mexico in the production of wheat, this means that, given the same resources, Mexico must have an absolute advantage in producing some good other than wheat. a. France can produce more wheat than Mexico. b. France has an absolute advantage in all goods that are complements to wheat. c. France must have an absolute advantage over Mexico in producing all goods. d. Mexico must have a comparative advantage over France in the production of wheat.arrow_forward
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