Question

1.Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3...

1.Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3 cottons and 3 leathers. In Nigeria, a clothing can be produced with 3 cottons and 2 leathers. Which of the following is TRUE?

Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3 cottons and 3 leathers. In Nigeria, a clothing can be produced with 3 cottons and 2 leathers. Which of the following is TRUE? *

1 point

A) Nigeria has both a comparative and an absolute advantage in the production of clothes

B) Ghana has both a comparative and an absolute advantage in the production of clothes

C) Ghana has an absolute advantage in the production of clothes, but from this information it cannot be determined if Ghana has a comparative advantage in the production of clothes

D) Nigeria has an absolute advantage in the production of clothes, but from this information it cannot be determined if Nigeria has a comparative advantage in the production of clothes

2.Suppose that Argentina and Chile are both engaged in the production of copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a lower opportunity cost for producing copper, then *

1 point

A) Chile has a comparative advantage in the production of copper, and specialization and trade between the two countries can be mutually beneficial

B) Argentina still has a comparative advantage in the production of both goods

C) Chile has a comparative advantage in wheat production and trade can benefit both countries

D) Chile has a comparative advantage in the production of copper, but it is outweighed by Argentina's absolute advantage in wheat production and thus trade is not beneficial to

Chile.

3.Country A would have an absolute advantage over Country B in the production of corn, if *

1 point

A) corn sells for a higher price in Country A than in Country B

For a given amount of resources, Japan can produce 2000 motorbikes and 4000 bicycles. For the same given amount of resources, UK can produce 500 motorbikes and 2000 bicycles. Which statement is correct? *

1 point

A) Japan has an absolute advantage in bicycles and UK has an absolute advantage in motorbikes

B) UK has an absolute advantage in both motorbike and bicycles

C) Japan has an absolute advantage in both motorbikes and bicycles

D) Japan has no absolute advantage in either product.

When countries specialize in producing those goods in which they have a comparative advantage, they *

1 point

A) maximize their combined output and allocate their resources more efficiently

B) allocate their resources more efficiently, but they do not necessarily maximize their combined output

C) maximize their combined output, but they do not necessarily allocate their resources more efficiently

D) do not necessarily maximize their combined output, and they also do not necessarily allocate their resources more efficiently.

B) corn can be produced at lower costs in terms of other goods than it could be in Country B

C) Country A uses fewer resources to produce corn than Country B does

D) the demand for corn is higher in Country A than in Country B

Homework Answers

Answer #1

1) Nigeria can produce using less leather than Ghana,then it has absolute advantage in production of clothes.

Option D is correct

2) Chile has comparitive advantage in copper as it can produce at lower opportunity cost than Argentina. So Argentina will have comparitive advantage in wheat .so specializing in their respective good and trading will benefit both country.

OPTION A is correct

3)A country has absolute advantage,when Country A uses fewer resources to produce corn than Country B does

4) because Japan can produce both good amount higher than UK with same resources ,so it has absolute advantage in both goods.

5)maximize their combined output and allocate resource more efficiently.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider two countries: The Netherlands and Germany. - Each country can produce bicycles and cars by...
Consider two countries: The Netherlands and Germany. - Each country can produce bicycles and cars by its resources. - If Germany allocates all of its resources to car production, it can produce 16 cars and hence no bicycles. And if Germany decides to allocate all resources to produce bicycles, it can produce 8 bicycles and hence, no cars. - If the Netherlands allocates all of its resources to produce cars, it can produce 10 cars and hence no bicycles. And...
True or False? 1) If Country A is absolutely better at producing everything than Country B,...
True or False? 1) If Country A is absolutely better at producing everything than Country B, then there is no incentive for Country A to engage in trade with Country B. 2) If Tom has a comparative advantage in producing corn then he must also have an absolute advantage in producing corn. 3) If Joe can produce a good at a lower opportunity cost than Fred, then Joe must have an absolute advantage in producing this good. 4) Consider the...
True, false or uncertain 112-A1-3. Suppose that Ontario can produce wheat at $1/bushel and corn at...
True, false or uncertain 112-A1-3. Suppose that Ontario can produce wheat at $1/bushel and corn at $3/bushel and Quebec can produce wheat at $4/bushel and corn at $4/bushel. Ontario has an absolute advantage in corn production, but Quebec has a comparative advantage in corn production. 112-A1-4. The data in 112A1-3 tells us that trading corn from Quebec to Ontario at a price of 2 bushels of corn per bushel of wheat will make both provinces better off.
All question about True or False. 1.A production possibilities frontier allows us to identify the opportunity...
All question about True or False. 1.A production possibilities frontier allows us to identify the opportunity cost of producing a particular good in an economy ( T/F) 2.In the circular flow model, people earn income and spend it on goods and services. The amount spent on the goods and services becomes profit for the firm. (T/F) 3.A production possibilities frontier identifies the relationship between the quantity of a good produced and the cost of producing that good. (T/F) 4.In Country...
3.    Table 3 shows number of goods that can be produced with one year of labor...
3.    Table 3 shows number of goods that can be produced with one year of labor in China and in Russia Table 3 Submarines Battleships China 15   12 Russia 4   8   a.    Who has the absolute advantage in Submarines and Battleships?                                                 Submarines___________________         Battleships__________________ b.   Find the relative cost or opportunity cost of producing Submarines and Battleships in each country.         China                             Submarines___________________         Battleships__________________                                     Russia                           Submarines___________________         Battleships__________________                             c.     Identify who has...
1. Two countries A and B both produce food and clothing. Country A can produce both...
1. Two countries A and B both produce food and clothing. Country A can produce both food and clothing using fewer resources than B. According to international trade theory A. Country A and B profitably specialize and trade with each other B. Country A and B should specialize in the good for which they each have a comparative advantage and then trade with one another C. Country B should specialize in both goods and trade with country A D. Country...
Question 1 In North and South Regland, the only two goods that can be produced are...
Question 1 In North and South Regland, the only two goods that can be produced are ice cream and televisions. The table below shows the hourly output of each worker in the two countries. Hourly output per worker Ice Cream Televisions North 3 1 South 4 2 Part A) Which country has absolute advantage in ice cream? In televisions? Which country has comparative advantage in ice cream? In televisions? Part B) Suppose the two countries mutually agree on a price...
Number of swords that can be produced in 1 hour Number of shields that can be...
Number of swords that can be produced in 1 hour Number of shields that can be produced in 1 hour Gondor 12 10 Rohan 4 8 Refer to the table above. Suppose that Gondor has a labor supply of 20 hours while the labor supply of Rohan is 50 hours. If each country dedicates its labor supply only to the production of the good in which it displays comparative advantage, and if they trade 3 swords in return of 5...
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce at...
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce at most 40 scones per day or at most 2 sweaters per day. Suppose that a Scottish worker can produce at most 20 scones per day or at most 4 sweaters per day. a. Which country has the absolute advantage in the production of each good? b. Find the opportunity cost of producing one sweater in terms of scones for each country. In other words,...
1) If Country A is absolutely better at producing everything than Country B, then there is...
1) If Country A is absolutely better at producing everything than Country B, then there is no incentive for Country A to engage in trade with Country B ( True or False?) 2)In one day Sam can produce 40 salads or 32 sandwiches. What is the opportunity cost of producing 1 sandwich?   3)If Tom has a comparative advantage in producing corn then he must also have an absolute advantage in producing corn (T/F?) 5) In one hour John can produce...