Question

1. Suppose that there are 10 million workers in Canada and that each can produce either...

1. Suppose that there are 10 million workers in Canada and that each can produce either 2 cars or 30 bushels of wheat in a year. If the United States offers to buy 10 million cars from Canada in exchange for 20 bushels of wheat per car

a. Canada should renegotiate the deal to sell 10 million cars in exchange for 10 bushels of wheat per car

b. Canada should not accept the deal

c. none of the above

d. Canada should accept the deal

2. An increase in the price of gasoline provides

a. information that tells consumers to buy more gas

b. information that tells consumers to buy less gas

c. information that tells producers to produce less gas

d. no information

Homework Answers

Answer #1

1) Canada can produce 20 million cars or 300 million bushels of wheat which means its opportunity cost of producing 1 car is 15 bushels of wheat. If it produces only cars, then it will exchange it with wheat only when it receives a higher trade price, that more than 15 bushels of wheat for each car. US offers to buy 10 million cars in exchange for 20 bushels of wheat per car which Canada will get 200 million bushels for exporting 10 million cars, the trade price being greater than 15 bushels of wheat for each car. Hence d. Canada should accept the deal

2) b. information that tells consumers to buy less gas. Higher price means less quantity demanded and more quantity supplied

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
Suppose there are 10 million workers in Canada and that each of these workers can produce...
Suppose there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. Draw Canada’s production possibilities frontier and show where it would produce if it decided to consume an equal amount of cars and of bushels of wheat. (20 pts.) How would it distribute its workers to produce the quantities in b.? (10 pts.)
Suppose there are 10 million workers in Canada and that each of these workers can produce...
Suppose there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. 1) Draw the Production Possibilities Frontier (PPF) for the US, knowing that each US worker can produce either 2 cars or 28 bushels of wheat a year. There are 20 million workers in the US 2) If the US wanted to consume an equal amount of both goods, what quantity of each would...
Suppose that there are 7 million workers in Mexico and that each of these workers can...
Suppose that there are 7 million workers in Mexico and that each of these workers can produce either 2 cars or 50 bushels of wheat in a year. The opportunity cost of producing a car in Mexico is   bushels of wheat, and the opportunity cost of producing a bushel of wheat in Mexico is   cars.
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce...
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce 10 tonnes of grain per year, whereas a Japanese worker can produce 5 tonnes of grain per year. To keep things simple, assume that each country has 100 million workers. Graph the production possibilities frontier of the Canadian and Japanese economies. For Canada, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of...
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce...
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce 10 tonnes of grain per year, whereas a Japanese worker can produce 5 tonnes of grain per year. To keep things simple, assume that each country has 100 million workers. a. Starting from a position without trade, give a numerical example in which trade makes each country better off. answer the part a
Provide your responses to each discussion: (Responses were analytical and demonstrated original thought.) Discussion:1 Better fuel...
Provide your responses to each discussion: (Responses were analytical and demonstrated original thought.) Discussion:1 Better fuel economy is the primary motive behind hybridization. The electric cars rely on electricity, then less gasoline or diesel. When the first hybrid cars like Toyota Prius and Honda Insight went on sale in Japan, most automakers felt electric cars couldn’t travel very far on a full charge. In the recent years, electric cars have improved significantly and the sales have been increased too. From...
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...
Question 1 If you are trying to make yourself as happy as you can be given...
Question 1 If you are trying to make yourself as happy as you can be given the constraints that you face, you are effectively: Select one: a. trying to find the intersection point between two budget constraints. b. trying to find the point on the budget constraint that is on the highest indifference curve. c. trying to find the point where the budget constraint and an indifference curve intersect. d. trying to find the point on an indifference curve that...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
Closed book and closed notes. 3. Basic Calculators are permitted. 4. Read all instructions and questions...
Closed book and closed notes. 3. Basic Calculators are permitted. 4. Read all instructions and questions carefully. 5. Show all your work. 6. Please place your Coquitlam College Identification Card face up and visible on your desk. 7. Electronic devices including cellular phones must be turned off and put away during the exam. 8. Any student who has a cell phone or other unauthorized electronic device (i.e. laptop, and et cetera.) on their person or around their desk during this...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT