Question

2. Give the information below identify which country has an absolute advantage and comparative advantage. Which...

2. Give the information below identify which country has an absolute advantage and comparative advantage. Which country should produce which products.  What are the gains from trade for the world economy? (hint you will need to find autarky output) To receive credit all work must be shown. Brazil Chile Thailand Panama Beef 100 cows 70 cows 25 cows 50 cows Lumber 1000 board feet 950 board feet 500 board feet 600 board feet

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the difference between absolute and comparative advantage? If Country A has an absolute advantage...
What is the difference between absolute and comparative advantage? If Country A has an absolute advantage in computers and food over Country B, Country A has a comparative advantage in computers and Country B has a comparative advantage in food, what should happen in terms of specialization and trade?
QUESTION 3 Consider the following maximum production quantities. Which country has the comparative advantage in ore?...
QUESTION 3 Consider the following maximum production quantities. Which country has the comparative advantage in ore? Fish Ore Fire Nation 600 1200 Air Nomads 70 50 Water Tribe 800 200 Earth Kingdom 1000 1500 Fire Nation Air Nomads Water Tribe Earth Kingdom
(5) Use the following information to determine which country has the comparative advantage in the production...
(5) Use the following information to determine which country has the comparative advantage in the production of (i) robots; and (ii) steel. Explain your answer—what is the basis of your determination? FIGURE V (USA) Production possibility Steel per period Robots per period A 200 0 B 100 200 C 0 400 FIGURE VI (JAPAN) Production possibility Steel per period Robots per period A 400 0 B 200 100 C 0 200 (6) Use the following information to explain the benefits...
Answer questions based on the following information: There are two countries, Home and Foreign, in a...
Answer questions based on the following information: There are two countries, Home and Foreign, in a hypothetical world. Each of these two countries are Ricardian economies. Each country is endowed with 1000 labor hours, which can be used to produce goods X and Y. The following table shows labor requirements per unit of each good in each country. Perfect competition prevails everywhere in the two-country world. Suppose that wand w* represent Home’s andForeign’s hourly wage rates, respectively. Goods Home Foreign...
QUESTION 1 Consider the following maximum production quantities. Which country has the absolute advantage in fish?...
QUESTION 1 Consider the following maximum production quantities. Which country has the absolute advantage in fish? Fish Ore Fire Nation 600 1200 Air Nomads 70 50 Water Tribe 800 200 Earth Kingdom 1000 1500 Water Tribe Fire Nation Air Nomads Earth Kingdom 11 points    QUESTION 2 Consider the following maximum production quantities. Which country has the comparative advantage in fish? Fish Ore Fire Nation 600 1200 Air Nomads 70 50 Water Tribe 800 200 Earth Kingdom 1000 1500 Fire...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only one factor of production, Labor. In Portugal, one unit of labor can produce 1 unit of wine or 1 unit of cheese. In England, one unit of labor can produce 1 unit of wine or 2 of cheese. There are 100 units of labor in Portugal, and 100 in England. Countries share the same tastes, and there is perfect competition. 1) Fill in the...
Assume that Canada and the United States both produce tea cakes and lumber, which are sold...
Assume that Canada and the United States both produce tea cakes and lumber, which are sold for the same price in each country. Below are the combinations of the two goods that each country can produce in one day, using the same quantities of capital and labor. Canada United States Tea Cakes (in pounds) Lumber (in tons) Tea Cakes (in pounds) Lumber (in tons) 0 60 0 50 10 45 10 40 20 30 20 30 30 15 30 20...
Consider a two-country, two-goods world. Trade is based on comparative advantage. You are given the following...
Consider a two-country, two-goods world. Trade is based on comparative advantage. You are given the following information (which applies to the whole question, unless otherwise stated): • One labour can produce 20 toasters (T) or produce 40 ovens (O) in Home (H); while one unit of foreign labour can produce 25 units and 50 units of toasters and ovens respectively. • The labour endowment in Home is 500, which is one-hundred units more than Foreign. • The free-trade relative price...
T or F   1) The theory of comparative advantage suggests specialization by country increases worldwide production....
T or F   1) The theory of comparative advantage suggests specialization by country increases worldwide production. T or F   2) Comparative advantage is not sensitive to government interference. T or F   3) Comparative advantage never changes over time. T or F   4) Financial capital as a factor of production usually flows freely between countries. T or F   5) Defensive investments are design to deny opportunities to a firm’s competitors. T or F   6) Exchange rate regimes reflect trade-offs between rules...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the consumer's gain from exchange c.the market price of a good or service d. the equilibrum quantity 3. trade permitts countries to a. consume more than they capable of producing b.produce based on their comparative advantage c.specialize more fully d.all of above 4. which of the following dose not impact how elastic supply is? a. whether the supply is local or global b.the share of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT