Macroeconomics (6th Edition)
6th Edition
ISBN: 9780134106229
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 7.2.4PA
To determine
Germany’s
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The table shows the units of output a worker can produce per hour in Germany and Korea for two different goods: spaetzle
and kimchi. Use this table to answer the question.
One worker in
Germany
One worker in
Korea
Pounds of spaetzle
per hour
Which of the statements is true?
2
Pounds of kimchi
per hour
Korea has a comparative advantage in the production of spaetzle, while Germany has a comparative advantage in
the production of kimchi.
Korea has a comparative advantage in the production of both goods.
Germany has a comparative advantage in the production of spaetzle, while Korea has a comparative advantage in
the production of kimchi.
Germany has a comparative advantage in the production of both goods.
150
100
Коrea
Taiwan
15
35
Quantity of good B
Does this figure indicate anything about either worker having a
comparative or absolute advantage in either good?
According to the figure, [Select]
has an
absolute advantage in the production of good A and
[ Select ]
has an absolute advantage in the
production of good B.
Considering comparative advantage,
[ Select]
has a comparative advantage in
the production of good A and [ Select ]
has
a comparative advantage in the production of good B.
Quantity of goodA
Anser questions relating to the article. The effects of tariff rates on the U.S. economy: what the Producer Price Index tells us : Beyond the Numbers: U.S. Bureau of Labor Statistics (bls.gov)
When tariffs are imposed, who ends up paying them?
What primary effect do tariffs have?
What is an example of a tariff being used as a “tool”?
Chapter 7 Solutions
Macroeconomics (6th Edition)
Ch. 7 - Prob. 7.1.1RQCh. 7 - Prob. 7.1.2RQCh. 7 - Prob. 7.1.3RQCh. 7 - Prob. 7.1.4PACh. 7 - Prob. 7.1.5PACh. 7 - Prob. 7.1.6PACh. 7 - Prob. 7.1.7PACh. 7 - Prob. 7.2.1RQCh. 7 - Prob. 7.2.2RQCh. 7 - Prob. 7.2.3PA
Ch. 7 - Prob. 7.2.4PACh. 7 - Prob. 7.2.5PACh. 7 - Prob. 7.2.6PACh. 7 - Prob. 7.2.7PACh. 7 - Prob. 7.2.8PACh. 7 - Prob. 7.2.9PACh. 7 - Prob. 7.3.1RQCh. 7 - Prob. 7.3.2RQCh. 7 - Prob. 7.3.3RQCh. 7 - Prob. 7.3.4RQCh. 7 - Prob. 7.3.5PACh. 7 - Prob. 7.3.6PACh. 7 - Prob. 7.3.7PACh. 7 - Prob. 7.3.8PACh. 7 - Prob. 7.3.9PACh. 7 - Prob. 7.3.10PACh. 7 - Prob. 7.3.11PACh. 7 - Prob. 7.3.12PACh. 7 - Prob. 7.3.13PACh. 7 - Prob. 7.4.1RQCh. 7 - Prob. 7.4.2RQCh. 7 - Prob. 7.4.3PACh. 7 - Prob. 7.4.4PACh. 7 - Prob. 7.4.5PACh. 7 - Prob. 7.4.6PACh. 7 - Prob. 7.4.7PACh. 7 - Prob. 7.4.8PACh. 7 - Prob. 7.4.9PACh. 7 - Prob. 7.4.10PACh. 7 - Prob. 7.4.11PACh. 7 - Prob. 7.4.12PACh. 7 - Prob. 7.4.13PACh. 7 - Prob. 7.4.14PACh. 7 - Prob. 7.4.15PACh. 7 - Prob. 7.5.1RQCh. 7 - Prob. 7.5.2RQCh. 7 - Prob. 7.5.3RQCh. 7 - Prob. 7.5.4RQCh. 7 - Prob. 7.5.5PACh. 7 - Prob. 7.5.6PACh. 7 - Prob. 7.5.7PACh. 7 - Prob. 7.5.8PACh. 7 - Prob. 7.5.9PACh. 7 - Prob. 7.5.10PA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Refer to the graph for the following questions. 1. Which country has the absolute advantage in production of Good A? A. Country Y B. Neither Country has an absolute advantage of producing Good A. C. Country X 2. Which Country has the comparative advantage in production of Good A? A. Neither Country has a comparative advantage in producing Good A. B. Country X C. Country Y 3. Which Country has the com advantage in production of Good B? A. Country X B. Country Y C. Neither country has a comparative advantage in producing Good B.arrow_forwardThe table below shows how many millions of cars and trucks each country can produce in one year. Based on the information, which of the following is true? Maximum Country Country outputs A B CARS 30 m 35 m TRUCKS 6 m 21 m Copyright: www.economicsonline.co.uk Country A has the comparative advantage in trucks Country B has the comparative advantage in cars Country A has the comparative advantage in cars Country A has the absolute advantage in carsarrow_forwardHey, I need your help. Thanks:)arrow_forward
- Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. Part 2 France Germany Wine (Bottles) Cheese (Pounds) Wine (Bottles) Cheese (Pounds) 0 8 0 25 1 6 1 20 2 4 2 15 3 2 3 10 4 0 4 5 5 0 Part 3 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? Part 4 A. Neither has a comparative advantage producing wine or cheese. B. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. C. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. D. France has a comparative advantage producing wine and cheese. E. Germany has a comparative advantage producing wine and cheese. Part 5 Suppose that France is…arrow_forwarda) What is meant by terms of trade? b) How does a tariff on imports affect a country's terms of trade. Briefly explain (2-3 sentences expected).arrow_forwardExplain briefly why a country can have an absolute advantage in the production of two goods, and yet a comparative advantage in the production of only one good just in a few sentencesarrow_forward
- Comparative advantage is an important concept to explain how economies work. Because of comparative advantage, it is possible for people to use their skills and time productively even if they are not the best at something. To help illustrate the usefulness of this concept: Think of an example (work, family chores, school projects, etc.) where you might not have an absolute advantage at something, but you do have a comparative advantage. By this, I mean that you might not be the fastest or the best at a particular job. Other employees, family members, etc. may do the job quicker or better than you could. But their opportunity cost was high, meaning they had something more necessary for them to do, so it made sense for you to do this job. Explain how this was an example of you having a comparative advantage but not an absolute advantage. Did you (and the others in your example) specialize according to comparative advantage? What job(s) did you do? What did other people do? Did this…arrow_forwardSuppose a world with two persons and two goods. Is the following statement True, False, Both (True and False), or None (neither True nor False): "Each person has a comparative advantage."arrow_forwardWhat does it mean to have an absolute advantage? What does it mean to have a comparative advantage?arrow_forward
- Computers Wheat country A 10 4 country B 6 3 Table shows the number of hours of labor required to produce 1 unit of output of computers and wheat in country A and B. Country ……… has an absolute advantage in computers. Country………. has an absolute advantage in wheat. Country……… has a comparative advantage in computers. Country……... has a comparative advantage in wheat. Price ratio( computers/wheat) should be between …………. and …………. for free trade.arrow_forwardHomework (Ch 03) When country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Candonia and Sylvania. Both countries produce potatoes and tea, each initially (i.e., before specialization and trade) producing 12 million pounds of potatoes and 6 million pounds of tea, as indicated by the grey stars marked with the letter A. ? Candonia Sylvania 32 28 24 TEA (Millions of pounds) 2 1 200 16 12 PPF H a TEA (Millions of pounds) 32 16 8 L PPF i I Carrow_forwardA country may specialize in the production of a good that it can produce at a lower opportunity cost than its trading partners. Because of this comparative advantage, countries benefit when they specialize and trade with each other. The following graphs show the production possibilities curves (PPCs) for Candonia and Sylvania. Both countries produce grain and sugar, each initially (i.e., before specialization and trade) producing 6 million pounds of grain and 3 million pounds of sugar, as indicated by the grey stars marked with the letter A. 16 14 12 10 8 6 PPC 2 Candonia (?) SUGAR (Millions of pounds) 16 14 12 10 8 6 2 PPC Sylvania 0 0 0 2 4 6 8 10 12 14 16 2 4 6 8 10 12 14 16 GRAIN (Millions of pounds) GRAIN (Millions of pounds) ? Candonia has a comparative advantage in the production of production of while Sylvania has a comparative advantage in the ▼. Suppose that Candonia and Sylvania specialize in the production of the goods in which each has a comparative advantage. After…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co