Assignment 5

.docx

School

Bevill State Community College *

*We aren’t endorsed by this school

Course

231

Subject

Economics

Date

Jun 13, 2024

Type

docx

Pages

1

Uploaded by annaliz1104

Report
Assignment 5 The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A B C D E F Apparel (in thousands 30 24 18 12 6 0 Chemicals (in tons) 0 6 12 18 24 30 U.S. Production Possibilities Product R S T U V W Apparel (in thousands 10 8 6 4 2 0 Chemicals (in tons) 0 4 8 12 16 20 a. Are the comparative-cost conditions such that the two areas should specialize? If so, what product should each produce? China should produce apparel, and the U.S. should produce chemicals. b. What is the total gain in apparel and chemical output that would result from specialization? The gain in apparel would be 2000 units and the gain in chemicals would be 2 tons. c. Explain why this illustration allows you to conclude that specialization according to comparative advantage results in more efficient use of world resources. This example shows that the world is obtaining more output from its fixed resources so we can determine that specialization according to comparative advantage results in more efficient use of world resources.
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Recommended textbooks for you
Text book image
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Text book image
ECON MICRO
Economics
ISBN:9781337000536
Author:William A. McEachern
Publisher:Cengage Learning
Text book image
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
SEE MORE TEXTBOOKS
Recommended textbooks for you
Text book image
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Text book image
ECON MICRO
Economics
ISBN:9781337000536
Author:William A. McEachern
Publisher:Cengage Learning
Text book image
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
SEE MORE TEXTBOOKS