Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 34, Problem 4E
To determine
To find:
The country having
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Which country has a comparative advantage in the production of wine?
when romania opened itself to international trade, the price of corn in romania almost doubled. does romania has comparative advantage in the production of corn? is romania an exporter or an importer of corn romania consumers of corn will be better off or worse off? how about the producers ? are there any gains from international trade?
How is comparative advantage related to early American production?
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- For a producer to have a comparative advantage in a good is it necessary to be the most efficient producer of that good? a) Yes b) Noarrow_forwardWhich country has an absolute advantage in the production of coffee?arrow_forwardThe demand for cameras in a certain country is given by D = 8000 – 30P, where P is the price of acamera. Supply by domestic camera producers is S = 4000 + 10P. If this economy opens to tradewhile the world price of a camera is $50, and the government imposes a tariff of $30 per camera,what will be the quantity of cameras that this country imports or exports?arrow_forward
- The demand for cameras in a certain country is given by D=8000−30P, where P is the price of a camera. Supply by domestic camera producers is S=4000+10P. Suppose that world price of a camera is $150. If this country decides to trade, which of the following is true? Group of answer choices 3000 cameras will be exported Domestic production of cameras will decrease by 500 Domestic production of cameras will increase by 500 2000 cameras will be importedarrow_forwardWhich country has comparative advantage in the production of food? Explain. See attached.arrow_forwardAssume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. If these two countries specialize in trade according to their comparative advantage, which of the following would not be true? A) Grease will specialize in and export fish B) more of each good can be consumed in both countries C) Greece will benefit from trade more than Germany D) Some individuals in each country will be hurt Can you help me with thisarrow_forward
- Country X has 100 units of labour and country Y has 200 units of labour. Both countries produce computers and televisions. The unit labour requirements are given in the table below: Computers Televisions Country X 50 Country Y 100 Assume that free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to televisions will be Select one: a. 0.02 (or 1/50) O b. 0.013 (or 1/75) c. 0.01 (or 1/100) d. impossible to determine without knowing the relative price of computers in terms of televisionsarrow_forwardWhy is comparative advantage important in determining trade instead of absolute advantage?arrow_forwardThe principle of comparative advantage suggests that, if New York and Florida exchange taxi parts for oranges, each state will be made worse off.arrow_forward
- Will a country import or export products for which it has a comparative advantage? Explain.arrow_forwardWhich country has comparative advantage in the production of washing machines and automobiles?arrow_forwarda) Which country has an absolute advantage in bananas? In wheat? b) What is the relative price of bananas in Costa Rica if it does not trade? In Argentina? c) What is opportunity cost of wheat in Costa Rica? In Argentina? d) Which country has a comparative advantage in bananas? In wheat? Explain your answer. e) What are the upper and lower bounds for the trade price of wheat?arrow_forward
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