Question

Two countries decide to engage in specialization and exchange with each other. As a result, we...

Two countries decide to engage in specialization and exchange with each other. As a result, we can expect:
a. the production possibilities curve for each country to remain unchanged.
b. the production possibilities curve for each country to shift inwards.
c. the production possibilities curve to shift outwards for the exporter and inwards for the importer.
d. the production possibilities curve for each country to shift outwards

Consider a normal good produced in a competitive market with many buyers and sellers. If the market is initially in equilibrium, and there is a 10% decrease in the cost producing this good then we can expect the equilibrium price to _____ and the equilibrium quantity to _____.

Homework Answers

Answer #1

Two countries decide to engage in specialization and exchange with each other, as a result we can expect:

Answer. The production possibility curve for each country to shift outwards.

Consider a normal good produced in a competitive market with many buyers and sellers. If the market is initially in equilibrium, and there is a 10% decrease in the cost producing this good then we can expect the equilibrium price to _decrease____ and the equilibrium quantity to ___increase__.

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 two countries producing just two goods, soybeans and potash fertilizer. Each country has...
Suppose there are two countries producing just two goods, soybeans and potash fertilizer. Each country has the same amount of inputs (factor resources and technology). An analysis of the level of output for each product if each country was to fully specialize in producing only one good is shown below. (the data shows how much output could be produced through specialization by each country: example: for soybeans country A can produce 40 units soybeans specializing and zero potash and B...
QUESTION 1 For a nation to have ________ in producing a good it must have a...
QUESTION 1 For a nation to have ________ in producing a good it must have a lower opportunity cost of producing that good than the other country. A. an absolute advantage B. an autarky advantage C. a comparative advantage D. both a comparative advantage and an absolute advantage 4 points    QUESTION 2 The relative amounts of the goods that will be exchanged for each other in trade refers to the nations' A. autarky status. B. terms of trade. C....
suppose we start with a perfectly competitive market,made of many sellers who each produce a small...
suppose we start with a perfectly competitive market,made of many sellers who each produce a small amount。 what do you predict will happen in this market as new technology is discovered by which production of this good can be automated,so that it is produced by machines instead of people? will demand shift? will supply shift? will the number of firms change?if so,how?
specialization. Imagine a household with two spouses: Jaelyn and Tanner. They each can produce either home...
specialization. Imagine a household with two spouses: Jaelyn and Tanner. They each can produce either home goods or market goods. Jaelyn can produce either $10 of home goods or $15 of markets goods in an hour, while Tanner can produce $12 of home goods or $12 of market goods in an hour. 1. Which of the following statements about opportunity cost is true? a. Jaelyn has a higher opportunity cost for market goods than Tanner, with each dollar of market...
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...
Consider two neighboring island countries called Felicidad and Contente. They each have 4 million labor hours...
Consider two neighboring island countries called Felicidad and Contente. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Country Rye Jeans (Bushels per hour of labor) (Pairs per hour of labor) Felicidad 5 20 Contente 8 16 Initially, suppose Contente uses 1 million hours of labor per...
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...
3. Gains from trade Consider two neighboring island countries called Dolorium and Arcadia. They each have...
3. Gains from trade Consider two neighboring island countries called Dolorium and Arcadia. They each have 4 million labor hours available per month that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Country Rye Jeans (Bushels per hour of labor) (Pairs per hour of labor) Dolorium 5 20 Arcadia 8 16 Initially, suppose Arcadia uses 1 million...
2. Gains from trade Consider two neighboring island countries called Euphoria and Arcadia. They each have...
2. Gains from trade Consider two neighboring island countries called Euphoria and Arcadia. They each have 4 million labor hours available per month that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Country Corn Jeans (Bushels per hour of labor) (Pairs per hour of labor) Euphoria 4 16 Arcadia 6 12 Initially, suppose Arcadia uses 1 million...
11.) England and Scotland can both produce scones and sweaters. Suppose that an English worker can...
11.) England and Scotland can both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour. (Draw a diagram of the two production possibilities frontiers in the space below if that would help you to answer the following questions.) a.) Which country has a lower opportunity cost in producing sweaters? (England/Scotland) (2 points) b.)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT