Homework Answers
44) Answer: Principle of comparative advantage.
Explanation:
Comparative advantage is the ability of a nation to produce a good or service at a lower opportunity cost than another country and trade it for goods or services having higher opportunity cost.
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44) The concept that suggests that all nations can gain through trade by producing goods for...
According to the principle of comparative advantage, a nation should specialize in producing those products which
According to the principle of comparative advantage, a nation should specialize in producing those products which other nations are unable to produce are hardest to protect through trade barriers it can produce at the lower opportunity cost than its trading partner use the scarcest resources
Mercantilists believed that two nations can gain from trade by trading according to each of their...
Mercantilists believed that two nations can gain from trade by trading according to each of their absolute advantages. Is this a valid statement? Explain (15)
6. If the relative opportunity costs of producing goods are identical across countries, then there are tary p A. no gains from trade. for t B. gains from trade if trade is based on absolute advan...
6. If the relative opportunity costs of producing goods are identical across countries, then there are tary p A. no gains from trade. for t B. gains from trade if trade is based on absolute advantage mand C. gains from trade if trade is based on comparative advantage pply D. gains from trade that depend on the degree of competition between intemational traders. nd fo 7. The text lists three reasons why economists and non-economists see the pros and cons...
Suppose the United Kingdom and Norway both produce ol and fish oil, which are sold for...
Suppose the United Kingdom and Norway both produce ol and fish oil, which are sold for the same prices in both countries. The following table shows combinations of both goods that each country can produce in a day, measured in thousands of barrels, using the same arnaunts of capital arnd labor United K Fish 12 ish 12 Who has the comparative advantage i preducing oil? A. Nelther country has a comperative advantage producing oll because their opportunity costs of producing...
Incorrect Question 11 0/1 pts Which of the following statements is true? Comparative advantage in producing...
Incorrect Question 11 0/1 pts Which of the following statements is true? Comparative advantage in producing a certain item arises from being the first country to manufacture that item. All countries can gain from trade if they all specialize in production according to comparative advantage A country cannot have comparative advantage in producing a certain item if it causes an increasing opportunity cost in producing the item A country cannot have a comparative advantage in producing a particular good unless...
5. The price of trade Suppose that Greece and Germany both produce jeans and shoes. Greece's...
5. The price of trade Suppose that Greece and Germany both produce jeans and shoes. Greece's Germany's opportunity cost of producing a pair of shoes is 10 pairs of jeans opportunity cost of producing a pair of shoes is 4 pairs of jeans while By comparing the opportunity cost of producing shoes in the two countries, you can tell that production of shoes and has a comparative advantage in the has a comparative advantage in the production of jeans Suppose...
In 2018, U.S. President Donald Trump argued that his country's trade agreements with other countries were...
In 2018, U.S. President Donald Trump argued that his country's trade agreements with other countries were bad for the United States and were unfairly benefiting America's trading partners. What does the theory of the gains from trade have to say about such arguments? In general, the basic theory of the gains from trade O A. suggests that free international trade leads increased consumption possibilities for all countries involved (as long as there are differences in opportunity costs). Free trade cannot...
5. The price of trade Suppose that Italy and Germany both produce beer and shoes. Italy's...
5. The price of trade Suppose that Italy and Germany both produce beer and shoes. Italy's opportunity cost of producing a pair of shoes is 3 barrels of beer while Germany's opportunity cost of producing a pair of shoes is 11 barrels of beer. By comparing the opportunity cost of producing shoes in the two countries, you can tell that has a comparative advantage in the has a comparative advantage in the production of beer. Suppose that Italy and Germany...
Suppose that Greece and Switzerland both produce beer and olives. Greece's opportunity cost of producing a...
Suppose that Greece and Switzerland both produce beer and olives. Greece's opportunity cost of producing a crate of olives is 5 barrels of beer while Switzerland's opportunity cost of producing a crate of olives is 10 barrels of beer. By comparing the opportunity cost of producing olives in the two countries, you can tell that has a comparative advantage in the production of olives and has a comparative advantage in the production of beer. Suppose that Greece and Switzerland consider...
Suppose that Greece and Denmark both produce beer and shoes. Greece's opportunity cost of producing a...
Suppose that Greece and Denmark both produce beer and shoes. Greece's opportunity cost of producing a pair of shoes is 4 barrels of beer while Denmark's opportunity cost of producing a pair of shoes is 10 barrels of beer. By comparing the opportunity cost of producing shoes in the two countries, you can tell that production of shoes and has a comparative advantage in the has a comparative advantage in the production of beer. Suppose that Greece and Denmark consider...
6. If the relative opportunity costs of producing goods are identical across countries, then there are tary p A. no gains from trade. for t B. gains from trade if trade is based on absolute advantage mand C. gains from trade if trade is based on comparative advantage pply D. gains from trade that depend on the degree of competition between intemational traders. nd fo 7. The text lists three reasons why economists and non-economists see the pros and cons...
Suppose the United Kingdom and Norway both produce ol and fish oil, which are sold for the same prices in both countries. The following table shows combinations of both goods that each country can produce in a day, measured in thousands of barrels, using the same arnaunts of capital arnd labor United K Fish 12 ish 12 Who has the comparative advantage i preducing oil? A. Nelther country has a comperative advantage producing oll because their opportunity costs of producing...
Incorrect Question 11 0/1 pts Which of the following statements is true? Comparative advantage in producing a certain item arises from being the first country to manufacture that item. All countries can gain from trade if they all specialize in production according to comparative advantage A country cannot have comparative advantage in producing a certain item if it causes an increasing opportunity cost in producing the item A country cannot have a comparative advantage in producing a particular good unless...
5. The price of trade Suppose that Greece and Germany both produce jeans and shoes. Greece's Germany's opportunity cost of producing a pair of shoes is 10 pairs of jeans opportunity cost of producing a pair of shoes is 4 pairs of jeans while By comparing the opportunity cost of producing shoes in the two countries, you can tell that production of shoes and has a comparative advantage in the has a comparative advantage in the production of jeans Suppose...
In 2018, U.S. President Donald Trump argued that his country's trade agreements with other countries were bad for the United States and were unfairly benefiting America's trading partners. What does the theory of the gains from trade have to say about such arguments? In general, the basic theory of the gains from trade O A. suggests that free international trade leads increased consumption possibilities for all countries involved (as long as there are differences in opportunity costs). Free trade cannot...
5. The price of trade Suppose that Italy and Germany both produce beer and shoes. Italy's opportunity cost of producing a pair of shoes is 3 barrels of beer while Germany's opportunity cost of producing a pair of shoes is 11 barrels of beer. By comparing the opportunity cost of producing shoes in the two countries, you can tell that has a comparative advantage in the has a comparative advantage in the production of beer. Suppose that Italy and Germany...
Suppose that Greece and Denmark both produce beer and shoes. Greece's opportunity cost of producing a pair of shoes is 4 barrels of beer while Denmark's opportunity cost of producing a pair of shoes is 10 barrels of beer. By comparing the opportunity cost of producing shoes in the two countries, you can tell that production of shoes and has a comparative advantage in the has a comparative advantage in the production of beer. Suppose that Greece and Denmark consider...
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