Consider the following table. Country A Country B Bananas 4 5 Apples 2 10 Numbers denote...
Consider the following table.
Country A Country B
Bananas 4 5
Apples 2 10
Numbers denote hours to produce 1 unit
Country A has an absolute (advantage or disadvantage) at apples and an absolute (advantage or disadvantage) at bananas.
Country B has an absolute (advantage or disadvantage) at apples and an absolute (advantage or disadvantage) at bananas.
Homework Answers
Country A has an absolute advantage at apples because it can produce 1 unit of apple in less hours than Country B and an absolute advantage at Bananas because it can produce 1 unit of banana in less hours than Country B.
Country B has an absolute disadvantage at apples because it requires more labor hours to produce 1 unit of apple than Country A and an absolute disadvantage at Bananas because it requires more labor hours to produce 1 unit of banana than Country A.
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Consider the following table.
Country A Country B
Bananas 4 5
Apples 2 10
Numbers denote...
Question 7 0 out of 10 points Consider the following table Country A Country B Bananas...
Question 7 0 out of 10 points Consider the following table Country A Country B Bananas Apples Numbers denote hours to produce 1 unit 4 What are the world's per-unit gain for bananas if Country A and B specialize according to their absolute advantage? What are the world's per-unit gain for apples if Country A and B specialize according to their absolute advantage? In order to answer, ask yourself: (1) Who the absolute advantage at what? (2) If Country A...
Question 4 O out of 10 points Consider the following table. Country A Country B Bananas...
Question 4 O out of 10 points Consider the following table. Country A Country B Bananas Apples Numbers denote hours to produce 1 unit The world per unit gains of specializing according to Comparative advantage are.. 10 In order to answer, ask yourself: (1) Who the comparative advantage at what? (2) If Country A and B specialize according to comparative advantage, who gives up the production of bananas? who gives up the production of Apples? (3) How many units of...
Comparative advantage 5 Consider the following table. Country A Country B MPL of wheat 8 MPL...
Comparative advantage
5 Consider the following table. Country A Country B MPL of wheat 8 MPL of cloth 10 | 4 a. Which country has an absolute advantage in wheat production? Why? b. Which country has an absolute advantage in cloth production? Why? c. Which country has a comparative advantage in wheat production? (Show why) d. Which country has a comparative advantage in cloth production? (show why) has an absoluto advantage in wheat production? (show
Suppose Home has 300 units of labor. It can produce two goods, apples and bananas. In...
Suppose Home has 300 units of labor. It can produce two goods,
apples and bananas. In Home a worker can produce 3 apples or 5
bananas.
a. Graph Home's PPF, with apples in the horizontal axis
. b. What is the opportunity cost of apples?
c. In the absence of trade – when Home is isolated ‐ what would
the relative price be?
d. Now suppose there is another country, Foreign, with a labor
force of 200. In Foreign a...
Consider two countries Home and Foreign that can produce two goods, apples and bananas, using labour...
Consider two countries Home and Foreign that can produce two goods, apples and bananas, using labour as the sole production factor. Home and Foreign have, respectively, 2400 and 1600 units of labour available and the unit labour requirements in the production of both goods are as shown in the following table: Home Foreign Apple 6 hours 10 hours Bananas 4 hours 2 hours 1. Construct the world relative supply curve and graph the relative demand curve along with the relative...
Q1: Q2: Suppose that a worker in Country A can produce either 25 bananas or 5...
Q1:
Q2:
Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The workers in Country B will benefit from trade if they: Multiple Choice specialize in bananas because they have a comparative advantage in banana production. O specialize in tomatoes because their opportunity cost of tomatoes...
5. Assume that the economy of Fruitland can produce two goods, apples (A) and bananas (B)....
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Imagine that a country produces only three goods: apples, bananas, and carrots. The quantities produced and...
Imagine that a country produces only three goods: apples,
bananas, and carrots. The quantities produced and the prices of the
three goods are listed below.
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The Ricardian Model I Consider two countries, Brazil and Italy and two goods, bananas and apples....
The Ricardian Model I Consider two countries, Brazil and Italy and two goods, bananas and apples. In Brazil the number of working hours necessary to produce one kilo of apples and bananas is respectively equal to 3 and 2. In Italy the number of working hours necessary to produce one kilo of apples and bananas is instead equal to respectively 5 and 1. The labor supply in Brazil is equal to 1200 workers, while in Italy it is equal to...
Imagine that a country produces only three goods: apples, bananas, and carrots. The quantities produced and...
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Question 7 0 out of 10 points Consider the following table Country A Country B Bananas Apples Numbers denote hours to produce 1 unit 4 What are the world's per-unit gain for bananas if Country A and B specialize according to their absolute advantage? What are the world's per-unit gain for apples if Country A and B specialize according to their absolute advantage? In order to answer, ask yourself: (1) Who the absolute advantage at what? (2) If Country A...
Question 4 O out of 10 points Consider the following table. Country A Country B Bananas Apples Numbers denote hours to produce 1 unit The world per unit gains of specializing according to Comparative advantage are.. 10 In order to answer, ask yourself: (1) Who the comparative advantage at what? (2) If Country A and B specialize according to comparative advantage, who gives up the production of bananas? who gives up the production of Apples? (3) How many units of...
Comparative advantage
5 Consider the following table. Country A Country B MPL of wheat 8 MPL of cloth 10 | 4 a. Which country has an absolute advantage in wheat production? Why? b. Which country has an absolute advantage in cloth production? Why? c. Which country has a comparative advantage in wheat production? (Show why) d. Which country has a comparative advantage in cloth production? (show why) has an absoluto advantage in wheat production? (show
Suppose Home has 300 units of labor. It can produce two goods,
apples and bananas. In Home a worker can produce 3 apples or 5
bananas.
a. Graph Home's PPF, with apples in the horizontal axis
. b. What is the opportunity cost of apples?
c. In the absence of trade – when Home is isolated ‐ what would
the relative price be?
d. Now suppose there is another country, Foreign, with a labor
force of 200. In Foreign a...
Consider two countries Home and Foreign that can produce two goods, apples and bananas, using labour as the sole production factor. Home and Foreign have, respectively, 2400 and 1600 units of labour available and the unit labour requirements in the production of both goods are as shown in the following table: Home Foreign Apple 6 hours 10 hours Bananas 4 hours 2 hours 1. Construct the world relative supply curve and graph the relative demand curve along with the relative...
Q1:
Q2:
Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The workers in Country B will benefit from trade if they: Multiple Choice specialize in bananas because they have a comparative advantage in banana production. O specialize in tomatoes because their opportunity cost of tomatoes...
Imagine that a country produces only three goods: apples,
bananas, and carrots. The quantities produced and the prices of the
three goods are listed below.
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Imagine that a country produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the three goods are listed below. Goods Quantities Produced Price Apples Bananas 10 $2.00 1.00 1.50 Carrots 28 Instructions: Round your answers to 2 decimal places a. What is this country's GDP? $ b. Suppose that a drought hits the country, causing the quantity of apples produced to fall to 6. Assuming that all prices remain constant, what is this country's...
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