Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 9, Problem 1MCQ
To determine
Among the given options, identify the correct one on the basis of below statement:
The primary force driving trade at international level is comparative____.
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Students have asked these similar questions
Two countries, A and B, produce cotton and wine. The table below describes their
maximum daily production of each good in kilograms for cotton and liters for wine.
Maximum daily production Country A Country B
Cotton
40
40
Wine
50
40
Which country has the comparative advantage in the production of
a.
wine? Why?
b.
If these two countries trade, which good will each of them export?
Why?
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?
Which of the following follows when a nation opens up for trade and starts exporting a good?
A. The price that domestic manufacturers of the good are paid declines.
B. Domestic consumers of the good benefit more than domestic producers of the good, who suffer losses.
C. Domestic producers of the good profit more than domestic consumers of the good lose.
D. The cost of the commodity for domestic consumers lowers.
Chapter 9 Solutions
Foundations of Economics (8th Edition)
Ch. 9 - Prob. 1SPPACh. 9 - Prob. 2SPPACh. 9 - Prob. 3SPPACh. 9 - Prob. 4SPPACh. 9 - Prob. 5SPPACh. 9 - Prob. 6SPPACh. 9 - Prob. 7SPPACh. 9 - Prob. 8SPPACh. 9 - Prob. 9SPPACh. 9 - Prob. 10SPPA
Ch. 9 - Prob. 11SPPACh. 9 - Prob. 1IAPACh. 9 - Prob. 2IAPACh. 9 - Prob. 3IAPACh. 9 - Prob. 4IAPACh. 9 - Prob. 5IAPACh. 9 - Prob. 6IAPACh. 9 - Prob. 7IAPACh. 9 - Prob. 8IAPACh. 9 - Prob. 9IAPACh. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Prob. 6MCQCh. 9 - Prob. 7MCQ
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Similar questions
- Two countries, A and B, produce cotton and wine. The table below describes their maximum daily production of each good in kilograms for cotton and liters for wine. Maximum daily production Country A Country B Cotton 40 40 Wine 50 40 Which country has the comparative advantage in the production of a. wine? Why? b. Why? If these two countries trade, which good will each of them export? C. When trade between the two countries is not allowed, country A produces 16 kg. of cotton and 30 liters of wine and country B produces 22 kg. of cotton and 18 liters of wine. Would they agree to trade if the agreement included the following two conditions: Each produces only the good for which they have the comparative advantage They trade 17 kg of cotton for 19 liters of winearrow_forward*** Which of the following statements about production and trade is FALSE? 1. If a country has an absolute advantage in producing a good, then it also has the comparative advantage in the production of that good. II. Rich countries will generally have the comparative advantage in the production of all goods. III. If a country has the absolute advantage in the production of a good, then this country will be made better off by specializing in the production of that good. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b C d Specialization and Trade Q4 Homework Answered *** I only. I and II only. I, II and III. Ill only. Answered-Incorrect 1 attempt left Specialization and Trade Q9 Homework Unanswered X Your answer Resubmitarrow_forwardWhat insights do welfare analysis (consumer surplus/producer surplus) offer into international trade? a. That trade increases the welfare of producers, so trade may make total surplus fall. b. That nations are better off NOT trading with each other, because lower world prices harm most nations producers and consumers. Oc. That while trade increases total surplus, consumers or producers in a country may gain or lose, depending on world price. C. d. That tariffs make a country better off and trade wars can definitely be won!arrow_forward
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- Question 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_forwardWhy are international negotiations important in order to reduce tariff rates worldwide? A. Special-interest groups cannot affect international negotiations. B. Large countries can impose policy restrictions on smaller countries. C. They help avoid trade wars. D. The world as a whole gains from free trade.arrow_forward3. Two areas, Europe and America, can produce only goods A and B, under constant costs as indicated below. What will be the result of free trade between the two areas? In Europe In America 1 unit of good A 2 hours of labor 3 hours of labor 1 unit of good B 4 hours of labor 5 hours of labor a. Europe will export A and B to America. b. Europe will import A and export B. c. Europe will import B and export A. d. Europe will import A and B from America. e. No trade will take place.arrow_forward
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