13. Option A Country A should specialize in production of wheat as the opportunity cost of not producing is higher. |
14. Option B Production possibilities frontier is a graphical representation of what an economy can produce given its efficiency in usage of resources. It just cannot go beyond that curve. |
13. According to the two production possibility curves shown, Country A should specialize in the production...
Question 19 A country decides to specialize in wheat production. They now export wheat and import shirts. Which groups of people in this country benefit from trade? PICK all that are correct. A) wheat consumers B) wheat producers C) shirt consumers D) shirt producers Question 20 When countries specialize in producing certain goods and then freely exchange those goods for other goods with different countries, what is the advantage? A) Each country can consume at a point outside their production...
17. In the following graph showing indifference curves for country A (a) and for country B (b) in a situation where both countries have the same production possibilities frontier, in autarky, Px/Py in country A is Px/Py in country B, and, if trade begins, country A will export good good Y sood X a. less than; X b. less than; Y c. greater than; X d. greater than; Y 18. Given the following diagram showing a fixed-quantity production-possibilities frontier, a...
Shown below are the production possibilities curves for two nations: the United States and Chile. Suppose these two nations do not currently engage in international trade or specialization, and suppose that points A and a show the combinations of wheat and copper they now produce and consume United States Chile 10 10 10 10 Copper (thousands of pounds) Copper (thousands of pounds) 1. What is the United States opportunity cost for wheat and copper - show your math work? 2....
12. Country A's opportunity cost of producing 1 ton of corn is 5 tons of wheat , while Country B's opportunity cost of producing 1 ton of corn is 1/3 of a ton of wheat. Which of the following statements is true? a. Country A should specialize in producing corn, while Country B should specialize in producing b. Country B should specialize in producing corn, while Country A should specialize in producing C. There will be no gains from trade...
Question 10 2 pts Question 11 1 pts The figure below shows the production possibilities frontiers of countries X and Y. The points on each axis represent the maximum quantities that each country could produce if they specialized entirely in one good or the other. According to this graph, the opportunity cost of producing a ton of wheat is... The figure below shows the production-possibilities frontiers of countries X and Y. The points on each axis represent the maximum quantities...
The diagram below pictures the economy of a country capable of producing steel and wheat. It is currently engaged in international trade with another country. The diagram includes a production possibility frontier, an indifference curve the country finds itself at, and an isovalue line. Referencing slides 56-59 should help you complete the assignment Wheat, min tons JULLILUL 12 UIT INT I LLLLL / 6 Steel, O s 10 15 20 25 30 mln tons a. Label the production (P) and...
1. Suppose country A can produce 30 units of Corn per time period (if it specializes in Corn). Country A can produce 4 outfits per time period (if it specializes in outfits). If country B specializes in Corn, it can produce 40 units per time period. If country B specialized in Outfits, it can produce 3 outfits per time period. A has a comparative advantage in Corn. B has a comparative advantage in Outfits. neither country has a comparative advantage....
4. Specialization and tradeWhen a country specializes in the production of a good, this means that it can produce this good at a lower opportunity cost than its trading partner. Because of this comparative advantage, both countries benefit when they specialize and trade with each other.The following graphs show the production possibilities frontiers (PPFs) for Maldonia and Lamponia. Both countries produce potatoes and coffee, each initially (i.e., before specialization and trade) producing 18 million pounds of potatoes and 9 million...
Assume that country A and country B can switch between producing wheat and producing beef at a constant rate.Minutes Needed to Make 1Bushel of WheatPound of BeefCountry A20 min12 minCountry B15 min10 min1. What is Country A’s opportunity cost of producing one pound of beef?a.3/5 bushel of wheatb.6/5 bushels of wheatc.4/3 bushels of wheatd.5/3 bushels of wheat2. What is Country A’s opportunity cost of producing one bushel of wheat?a.3/5 pound of beefb.6/5 pounds of beefc.4/3 pounds of beefd.5/3 pounds of...
Ricardo’s theory of trade suggests that it makes sense for a country to specialize in the production of those products that it produces most efficiently and to buy the products that it produces less efficiently from other countries, even if this means that the country is buying products that in reality, it could produce more efficiently itself. This means that Ricardo showed that a country can derive advantages by trade even though it has an absolute advantage in producing all products. The Heckscher-Ohlin theory of ...