Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 73 units of pretzels or 12 units of cars per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with Germany at a trade price of 0.46 units of cars for one unit of pretzel. For every 5640 units of the goods that Canada produces and trades with Germany, what are the gains from trade in terms of the other goods? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)
Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 73 units of pretzels or 12 units of cars per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with Germany at a trade price of 0.46 units of cars for one unit of pretzel. For every 5640 units of the goods that Canada produces and trades with Germany, what are the gains from trade in terms of the other goods? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 2SCQ: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40...
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Transcribed Image Text:Germany can produce either 40 units of pretzels or 20 units of cars per labour hour.
Canada can produce either 73 units of pretzels or 12 units of cars per labour hour.
Suppose Canada follows its comparative advantage in deciding what to produce and
trade with Germany at a trade price of 0.46 units of cars for one unit of pretzel. For
every 5640 units of the goods that Canada produces and trades with Germany, what
are the gains from trade in terms of the other goods?
Answer:
units
(DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL
ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES,
AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)
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