Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a...
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a yard of cloth is 6 hours while the requirement for a bushel of wheat is 9 hours. In Brazil, the requirement for a yard of cloth is 6 hours while that for a bushel of wheat is 10 hours.
Question: Which country has absolute advantage in wheat? In cloth?
Homework Answers
No country has absolute advantage in cloth since labor requirement for a yard of cloth is 6 hours for both countries.
Chile has absolute advantage in wheat since it has lower labor requirement to produce 1 bushel of wheat as compared to that of Brazil.
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Situation: Brazil and Chile can produce cloth and wheat. In
Chile, the labor requirement for a...
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a...
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a yard of cloth is 6 hours while the requirement for a bushel of wheat is 9 hours. In Brazil, the requirement for a yard of cloth is 6 hours while that for a bushel of wheat is 10 hours. Question: Is it possible for the wheat-exporting country to charge 12 bushels/yard for its wheat? Explain briefly.
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a...
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a yard of cloth is 6 hours while the requirement for a bushel of wheat is 9 hours. In Brazil, the requirement for a yard of cloth is 6 hours while that for a bushel of wheat is 10 hours. Question: What is the opportunity cost of wheat (in terms of units of cloth) in Brazil? In Chile?
Trading Countries: Assume that Brazil and Chile can switch between producing beef and producing wheat at...
Trading Countries: Assume that Brazil and Chile can switch between producing beef and producing wheat at a constant rate. The following table shows the pounds of beef or the bushels of wheat each country can produce in one hour. Output produced in one hour bushels of wheat pounds of beef Brazil 12 10 Chile 20 Brazil should specialize in the production of nenher good and Chile should specialize in the production of both goods. both goods and Chile should specialize...
Question Completion Status: Moving to another question will save this response Question 25 points Assume that...
Question Completion Status: Moving to another question will save this response Question 25 points Assume that Braril and Chile can switch between producing beef and producing wheat at a constant rate. The following table shows the pounds of beef or the bushels of wheat each country can produce hour. Output produced in one hour bushels of wheat pounds of beef Brazil 12 10 Chile 20 12 Which of the following prices would both Brazil and Chile gain from trade with...
E and F please 1. (16 points) Answer the following questions based on the information in...
E and F please
1. (16 points) Answer the following questions based on the information in the table below. U.S.U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 6 6 A. (2 points) Which country has an absolute advantage in wheat? Which country has an absolute advantage in cloth? Can mutually beneficial trade take place between U.S. and U.K. according to the law of absolute advantage? B. (2 points) What is the opportunity cost of wheat in each country? c. (2 points)...
Problems: 50 points 1. (10 points) Labor Inputs 100 120 Wheat Clothing Country United States Brazil...
Problems: 50 points 1. (10 points) Labor Inputs 100 120 Wheat Clothing Country United States Brazil Answer the following: a. Who has the absolute advantage in which good? b. What is the opportunity cost of wheat in the US? in Brazil? c. What is the opportunity cost of clothing in the US? in Brazil? d. Who has the comparative advantage in which good? e. What are the limits of the post-trade relative price of wheat? Suppose the actual post-trade relative...
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor...
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor intensive than automobile production. Chile has 200 units of capital and S0 units of labor and United States has 1500 units of capital and 275 units of labor. has more capital and is relatively capital abundant. will export wheat and d. In Chile, the production of e In United States, the price of automobiles Chilean workers should has more labor. is...
6. The following table shows how many hours it would take to produce one meter of...
6. The following table shows how many hours it would take to produce one meter of cloth or one kilogram of wheat for country A and country B._? Cloth wheat Country A 1 hour/per meter 3 hours/per kg Country B 2 hours / per meter 4 hours/per kg According to the absolute advantage theory, is there a basis for trade between country A and country B? Explain. Which country has the comparative advantage in wheat production? Explain your answer. Now...
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 ___________...
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
Trading Countries: Assume that Brazil and Chile can switch between producing beef and producing wheat at a constant rate. The following table shows the pounds of beef or the bushels of wheat each country can produce in one hour. Output produced in one hour bushels of wheat pounds of beef Brazil 12 10 Chile 20 Brazil should specialize in the production of nenher good and Chile should specialize in the production of both goods. both goods and Chile should specialize...
Question Completion Status: Moving to another question will save this response Question 25 points Assume that Braril and Chile can switch between producing beef and producing wheat at a constant rate. The following table shows the pounds of beef or the bushels of wheat each country can produce hour. Output produced in one hour bushels of wheat pounds of beef Brazil 12 10 Chile 20 12 Which of the following prices would both Brazil and Chile gain from trade with...
E and F please
1. (16 points) Answer the following questions based on the information in the table below. U.S.U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 6 6 A. (2 points) Which country has an absolute advantage in wheat? Which country has an absolute advantage in cloth? Can mutually beneficial trade take place between U.S. and U.K. according to the law of absolute advantage? B. (2 points) What is the opportunity cost of wheat in each country? c. (2 points)...
Problems: 50 points 1. (10 points) Labor Inputs 100 120 Wheat Clothing Country United States Brazil Answer the following: a. Who has the absolute advantage in which good? b. What is the opportunity cost of wheat in the US? in Brazil? c. What is the opportunity cost of clothing in the US? in Brazil? d. Who has the comparative advantage in which good? e. What are the limits of the post-trade relative price of wheat? Suppose the actual post-trade relative...
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor intensive than automobile production. Chile has 200 units of capital and S0 units of labor and United States has 1500 units of capital and 275 units of labor. has more capital and is relatively capital abundant. will export wheat and d. In Chile, the production of e In United States, the price of automobiles Chilean workers should has more labor. is...
6. The following table shows how many hours it would take to produce one meter of cloth or one kilogram of wheat for country A and country B._? Cloth wheat Country A 1 hour/per meter 3 hours/per kg Country B 2 hours / per meter 4 hours/per kg According to the absolute advantage theory, is there a basis for trade between country A and country B? Explain. Which country has the comparative advantage in wheat production? Explain your answer. Now...
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
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