Acme Corp is located in country A. Country A enjoys high economies of scale in the...
Acme Corp is located in country A. Country A enjoys high economies of scale in the production of farm implements, but must import almost all its food. The government of country A has decided to export its farm implements to country B, which enjoys economies in the production of agricultural products, but doesn’t have an industry to produce farm implements. Why wouldn’t country A want to try to produce its food internally and country B start a farm implement industry?
a. Country A has an absolute advantage in farm implements while country B has a comparative advantage in agricultural products
b. Country B has a comparative advantage in farm implements while country A has a comparative advantage in agricultural products
c. Country A has an absolute advantage in agricultural products while country B has a comparative advantage in farm implements
d. Country B has a comparative advantage in farm implements while country A has an absolute advantage in agricultural products
e. None of the above.
Homework Answers
Answer:
- Option E: None of the above
Explanation:
- The reason is country A has a comparative advantage in farm implements, whereas B has a comparative advantage in agricultural products.
- Comparative advantage in a product for producer means producing 1 unit of that product will yield more value than producing 1 unit of other product.
Add Answer to:
Acme Corp is located in country A. Country A enjoys high
economies of scale in the...
Consider the PPFs in the illustration below: Country Y COMPUTERS Country X 1 2 3 4...
Consider the PPFs in the illustration below: Country Y COMPUTERS Country X 1 2 3 4 7 8 9 10 11 5 5 6 FOOD a. Which country enjoys absolute advantage? b. Country enjoys comparative advantage in the production of Food and Country enjoys comparative advantage in the production of Computers. c. Following the Heckscher Ohlin theorem, Country should specialize in the production of and Country in the production of d. Hence, Country X would show a surplus in the...
SCI. DJ CLICS. Janvuls. D) peuoleum Jelena LILI 31 . When compared with China, the growth...
SCI. DJ CLICS. Janvuls. D) peuoleum Jelena LILI 31 . When compared with China, the growth of clothing exports originating in Bangladesh is the result of: A) the comparative advantage that Bangladesh has in the production of clothing for export. B) the absolute advantage that China has in the production of clothing for export. C) the absolute advantage that Bangladesh has in the production of clothing for export. D) the comparative and absolute advantage that China has in the production...
5. The economies of New Zealand and Australia produce only wheat and cotton. Each country has...
5. The economies of New Zealand and Australia produce only wheat and cotton. Each country has land area of 100 acres. The following table gives the production per acre of what and Cotton in each country: New Zealand Australia Wheat Cotton 6 2 2 6 a. Which country has absolute advantage in what commodity? b. Which country has comparative advantage in what commodity? c. Sketch the Production possibility curve for both countries (draw the PPC) for a month. Does it...
8. Consider the PPFs in the illustration below: 70 60 50 40 Country Y COMPUTERS COMPUTERS...
8. Consider the PPFs in the illustration below: 70 60 50 40 Country Y COMPUTERS COMPUTERS 30 Country X 20 10 0 0 1 2 3 4 7 8 9 10 11 5 6 FOOD a. Which country enjoys absolute advantage? b. Country enjoys comparative advantage in the production of Food and Country enjoys comparative advantage in the production of Computers. c. Following the Heckscher Ohlin theorem, Country should specialize in the production of Food and Country in the production...
1. Suppose country A can produce 30 units of Corn per time period (if it specializes...
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....
Unit Labor Requirements Cloth Widgets Home 20 10 60 Foreign 30 11) Given the information in...
Unit Labor Requirements Cloth Widgets Home 20 10 60 Foreign 30 11) Given the information in the table above A) neither country has a comparative advantage in cloth B) Home has a comparative advantage in cloth. C) Foreign has a comparative advantage in cloth. D) Home has a comparative advantage in both cloth and widgets. E) neither country has a comparative advantage in widgets. 12) Given the information in the table above, if wages were to double in Home, then...
Consider two neighboring island countries, Botoga and Fiatstan. Each has 72,000 labor hours available per week...
Consider two neighboring island countries, Botoga and Fiatstan. Each has 72,000 labor hours available per week that it can use to produce jeans, wheat, or a combination of both. The following table shows the amount of labor hours required to produce 1 pair of jeans or 1 bushel of wheat. Country Jeans Wheat (Labor hours per pair) (Labor hours per bushel) Botoga 80 16 Fiatstan 24 12 _____________ (Botoga/Fiatstan) has an absolute advantage in the production of jeans, and ___________...
If Mary can bake a cake at a lower opportunity cost than Sarah can, then: Mary...
If Mary can bake a cake at a lower opportunity cost than Sarah can, then: Mary should not bake cakes. O Mary can bake more cakes than Sarah can in a given amount of time. Mary has a comparative adrantage in balking cakes. Sarah has a comparative advantage in baking cakes. The table shows the tons of steel or number of computers a worker can produce per week in Germany and South Korea. Use this table to answer the question....
Instruction: Use Table A representing hypothetical production capacities of two economies in answering the following questions....
Instruction: Use Table A representing hypothetical production capacities of two economies in answering the following questions. Assume that there are only 2 laborers in each country that works exactly 1 hour only. If each laborer (e.g. 1 laborer in each good) in each country works 1 hour in producing wine and bread, the output per country are as follows: A) Without Specailization/Pre-trade Country/Good Wine /hour or labor Bread /hour of labor Philippines 12 8 20 USA 10 1. Who has...
ge is likely to be due to nent "Germany enjoys a comparative puits W e Outsourcing services. _. In the Ricardian mo...
ge is likely to be due to nent "Germany enjoys a comparative puits W e Outsourcing services. _. In the Ricardian model, comparative advantage is likely to be A) scale economies. B) home product taste bias. C) greater capital availability per worker. D) labor productivity differences. E) political pressure. . In a two-country, two-product world, the statement "Ger advantage over France in autos relative to ships" is equi A) France having a comparative advantage over Germany in B) France having...
Consider the PPFs in the illustration below: Country Y COMPUTERS Country X 1 2 3 4 7 8 9 10 11 5 5 6 FOOD a. Which country enjoys absolute advantage? b. Country enjoys comparative advantage in the production of Food and Country enjoys comparative advantage in the production of Computers. c. Following the Heckscher Ohlin theorem, Country should specialize in the production of and Country in the production of d. Hence, Country X would show a surplus in the...
SCI. DJ CLICS. Janvuls. D) peuoleum Jelena LILI 31 . When compared with China, the growth of clothing exports originating in Bangladesh is the result of: A) the comparative advantage that Bangladesh has in the production of clothing for export. B) the absolute advantage that China has in the production of clothing for export. C) the absolute advantage that Bangladesh has in the production of clothing for export. D) the comparative and absolute advantage that China has in the production...
5. The economies of New Zealand and Australia produce only wheat and cotton. Each country has land area of 100 acres. The following table gives the production per acre of what and Cotton in each country: New Zealand Australia Wheat Cotton 6 2 2 6 a. Which country has absolute advantage in what commodity? b. Which country has comparative advantage in what commodity? c. Sketch the Production possibility curve for both countries (draw the PPC) for a month. Does it...
8. Consider the PPFs in the illustration below: 70 60 50 40 Country Y COMPUTERS COMPUTERS 30 Country X 20 10 0 0 1 2 3 4 7 8 9 10 11 5 6 FOOD a. Which country enjoys absolute advantage? b. Country enjoys comparative advantage in the production of Food and Country enjoys comparative advantage in the production of Computers. c. Following the Heckscher Ohlin theorem, Country should specialize in the production of Food and Country in the production...
Unit Labor Requirements Cloth Widgets Home 20 10 60 Foreign 30 11) Given the information in the table above A) neither country has a comparative advantage in cloth B) Home has a comparative advantage in cloth. C) Foreign has a comparative advantage in cloth. D) Home has a comparative advantage in both cloth and widgets. E) neither country has a comparative advantage in widgets. 12) Given the information in the table above, if wages were to double in Home, then...
If Mary can bake a cake at a lower opportunity cost than Sarah can, then: Mary should not bake cakes. O Mary can bake more cakes than Sarah can in a given amount of time. Mary has a comparative adrantage in balking cakes. Sarah has a comparative advantage in baking cakes. The table shows the tons of steel or number of computers a worker can produce per week in Germany and South Korea. Use this table to answer the question....
Instruction: Use Table A representing hypothetical production capacities of two economies in answering the following questions. Assume that there are only 2 laborers in each country that works exactly 1 hour only. If each laborer (e.g. 1 laborer in each good) in each country works 1 hour in producing wine and bread, the output per country are as follows: A) Without Specailization/Pre-trade Country/Good Wine /hour or labor Bread /hour of labor Philippines 12 8 20 USA 10 1. Who has...
ge is likely to be due to nent "Germany enjoys a comparative puits W e Outsourcing services. _. In the Ricardian model, comparative advantage is likely to be A) scale economies. B) home product taste bias. C) greater capital availability per worker. D) labor productivity differences. E) political pressure. . In a two-country, two-product world, the statement "Ger advantage over France in autos relative to ships" is equi A) France having a comparative advantage over Germany in B) France having...
Most questions answered within 3 hours.
-
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 18 minutes ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 1 hour ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 1 hour ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 1 hour ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 1 hour ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 1 hour ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 2 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 2 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 3 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 4 hours ago -
Bank of America has bonds that pay a coupon interest rate of 5.5
percent and mature...
asked 4 hours ago -
Problem: Patient Fees C++
You are to write a program that computes a patient’s bill for...
asked 6 hours ago