Can you give me an answer to some of these questions? Applied Problems on Trade1. The following table shows the total number of hats or baskets that the tribes ofDakal and Sele can produce given their resources.For Dakal:OC of 1 HatOC of 1 Basket =For Sele:a) Who has an absolute advantage in the production of Hats?b) Who has an absolute advantage in the production of Baskets?c) Find the Opportunity Costs of producing Hats and Baskets for both tribes:OC of 1 Hat =OC of 1 Basket =DakalSeleHats1051 Hat=1 Basket =Name:d) Who has comparative advantage in the production of Hats? In Baskets?Comparative Advantage in Hat =Comparative Advantage in Basket =OBaskets7030e) What should the terms of trade have to be both tribes to gain from trade? (Giveme a range)f) If the terms of trade were 1 Hat = 7 Baskets, who would refuse to trade - the tribeselling hats or the tribe selling baskets? Circle the correct answer:o Tribe selling hats will refuseoo Neither tribe will refuseBoth tribes will refuseTribe selling baskets will refuse

If a nation or Tribe has the capability to produce a good or service at a lower cost than others,…

1. The following table shows the total number of hats or baskets that the tribes of Dakal and Sele can produce given their resources. Dakal Sele Hats 10 5 a) Who has an absolute advantage in the production of Hats? b) Who has an absolute advantage in the production of Baskets? c) Find the Opportunity Costs of producing Hats and Baskets for both tribes: For Dakal: OC of 1 Hat= OC of 1 Basket = For Sele: OC of 1 Hat OC of 1 Basket = 1 Hat= 1 Basket = Baskets 70 30 d) Who has comparative advantage in the production of Hats? In Baskets? Comparative Advantage in Hat= Comparative Advantage in Basket - e) What should the terms of trade have to be both tribes to gain from trade? (Give me a range) f) If the terms of trade were 1 Hat=7 Baskets, who would refuse to trade - the tribe selling hats or the tribe selling baskets? Circle the correct answer: o Tribe selling hats will refuse o Tribe selling baskets will refuse o Neither tribe will refuse o Both tribes will refuse

1. The following table shows the total number of hats or baskets that the tribes of Dakal and Sele can produce given their resources. Dakal Sele Hats 10 5 a) Who has an absolute advantage in the production of Hats? b) Who has an absolute advantage in the production of Baskets? c) Find the Opportunity Costs of producing Hats and Baskets for both tribes: For Dakal: OC of 1 Hat= OC of 1 Basket = For Sele: OC of 1 Hat OC of 1 Basket = 1 Hat= 1 Basket = Baskets 70 30 d) Who has comparative advantage in the production of Hats? In Baskets? Comparative Advantage in Hat= Comparative Advantage in Basket - e) What should the terms of trade have to be both tribes to gain from trade? (Give me a range) f) If the terms of trade were 1 Hat=7 Baskets, who would refuse to trade - the tribe selling hats or the tribe selling baskets? Circle the correct answer: o Tribe selling hats will refuse o Tribe selling baskets will refuse o Neither tribe will refuse o Both tribes will refuse

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 8P

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Similar questions

Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
How does comparative advantage lead to gains from trade?