If the country specialize in and agreed to trade 100 car parts for 100 aircraft parts, show on the graphs the gain that each country receives from trade and what are the characteristics about the price and allows for gains from trade?

Q: According to Figure 1, what is the gain or loss to the consumers from free trade, compared to…

A: Consumer surplus is the difference between the price that the consumer is willing to pay and the…

Q: If demand for a country's export good rises, other things being equal, will both the commodity terms…

A: If demand for country export goods rises this will lead to an increase in the Price index=Px/Pi or…

Q: When Oz land closes off to trade, it notices that the number of firms in an industry double in size.…

A: Cournet theory explains the given phenomenon while the others does not. The Cournet model of…

Q: Econ Land is trading corn in exchange for computers with the Republic of Trade now (you might…

A: The transfer of services and goods that takes place between individuals or entities being done in…

Q: The United States is more productive in most activities than are most of other countries because it…

A: In trade theory, absolute advantage refers to the ability of a country to produce goods at a lower…

Q: Canada has negotiated free trade agreements with several countries. With reference to theories of…

A: Free trade refers to when products and services may be purchased and sold freely across nations or…

Q: Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can…

A: The table below summarises the information provided:   Pretzels Car Germany 40 20 Canada 73…

Q: Why do countries place restrictions on international trade? Suppose the United States imposes a…

A: The reasons why do countries place restrictions on international trade are Saving domestic jobs –…

Q: An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in…

A: Comparative cost advantage: - it is a principle of international trade given by David Ricardo which…

Q: international trade  Consider an H-0 economy in which there are two countries (US and France), two…

A: Answer Consider the US as a Home country and France as a Foreign country.   Given that the US is a…

Q: Calculate the gains from trade—that is, the amount by which each country has increased its…

A: This question should be rejected as it is an incomplete question. The required table mentioned in…

Q: Suppose the production of chocolate and wine per hour of labor in Italy and France is as follows:…

A: a) From the given table we observe that using all its resources, Italy can produce either 8 bars of…

Q: The table below shows the production of beef (in pounds) and autos of ONE worker in Argentina and in…

A: Comparative advantage is when a country is able to produce a good at a lower opportunity cost…

Q: The only two countries in the world alpha and omega production possibilities if these countries…

A:

Q: If Alabama imports 10 bushels of peaches and exports 40 bushels of tomatoes, trade allows Alabama to…

A: The concept is based on comparative advantage trade. When we look at the graphs, we are able to…

Q: Show on the PPF how both Germany and France gain from trade. B) How many units of apples and…

A:

Q: The following hypothetical production possibilities tables are for China and the United States.…

A: a. The specialization is the process in which the economy decides to produce only that good in which…

Q: Although both tariffs and quotas are tools used to restrict or reduce trade, which of the statements…

A: The tariff is a kind of international trade restrictions imposed by the government to protect the…

Q: There are two countries in the world, A and B, which trade only two goods, shirts and pants. Under…

A: Here, it is given that the world price of shirts lies above the autary price of given two countries,…

Q: Consider the following data on two countries, A and B.                               A…

A: Here, the given table shows the total number of skilled and unskilled labor in country A and country…

Q: Refer to the figure regarding countries A and B. If each country allocated half of its labor force…

A: Production  Production refers to the process at which the goods and services are produced by the…

Q: How important is international trade to the United States? Are other countries more or less…

A: America could not become a rich country unless it could sell its product its goods and services…

Q: When a country allows trade and becomes an exporter of a good, which of the following is NOT a…

A: When an economy allows trade and exports, then the price received by sellers in the domestic market…

Q: What is the range for mutually beneficial trade between the United Kingdom and Spain for each…

A: When various nations engage in the exchange of commodities and also services, it is known as…

Q: Draw a domestic supply and demand diagram for a product in which the United States does not have a…

A: Domestic price in U.S is Pe. With the openness to world trade, prices will decrease and the quantity…

Q: If Malaysia wishes to trade 10 tons of rubber with Japan in exchange for radios, what is the lowest…

A: International trade refers to the exchange or trade of goods and services between nations. The…

Q: Suppose the relative price of good A before trade is equal to one in the home country and two in the…

A: According to the question, the three is two countries home and foreign both have a different…

Q: When the two countries did not specialize, the total production of jeans was 17 million pairs per…

A: Given:   Jeans Rye Dolorium 4 16 Arcadia 5 10 Note: Data for production of jeans and rye…

Q: In Norway, one worker can produce either 8 pounds of smoked fish or 8 barrels of oil. In Saudi…

A: Given:- Production in Norway=8 pound of fish or 8 barrels of oil Production in Saudi Arabia=5 pound…

Q: Q95 The division of the gains from trade between two trading countries depends on the... a.…

A: The division of the gains from trade between two trading countries depends on the difference between…

Q: According to the foreign trade effect, when the price of American-made cars falls, U.S. consumers…

A: Aggregate demand slope downward showing inverse relationship between price and quantity demanded

Q: The table below shows the production of oil and lumber of ONE worker in China and India: rice (in…

A: Answer: a. Before the trade, Production is equal to Consumption. It means each country consumes what…

Q: Finally, Canada and Australia are both English-speaking countries with not-too dissimilar population…

A: Suppose there are two nations (A and B) which are producing two goods (X and Y). And they both…

Q: Trade models claim that the condition of trade is generally always better than the condition of no…

A: Almost every economist propose the theory of free Trade. The government has to choose between two…

Q: Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can…

A: Answer: Given, Country Pretzels per labor hour Cars per labor hour Germany 40 20 Canada 61 14…

Q: Consider two countries Home and Foreign producing goods using only one factor of production, Labor.…

A: The economics as a study is based upon the basic idea that the resources which are present with the…

Q: If nations begin to specialize in production for the purpose of trade,   a. the utility from…

A: If the nation specializes in the production of the guns for the trade, it will increase the total…

Q: Which of the following statements is TRUE? Output per Day of Work Food Clothing Country A Country B…

A: The capacity of an economy to produce a certain item or service at a lower opportunity cost than its…

Q: Suppose the United States passed a law stating that we could not purchase imports from any country…

A: If a country U passes a law where the imports would not be purchased from a country imposing tariffs…

Q: Suppose Anguilla and Barbuda intend to trade 250 bananas (B) for 300 cocoa beans (C). In Anguilla,…

A: Hi, according to our guidelines we are allowed to answer only upto three subdivisions of a question…

Q: In context of International Business and Trade the above example of US and Mexico focuses on…

A: Absolute advantage is when a country is able to produce a good or service more efficiently than…

Q: Comparative advantage explains why people _____. Select one: a. work at the job they love and grow…

A: In the theory of international trade, comparative advantage occurs when a country has a lower…

Q: To produce 1 unit of cotton country X uses 25 units of labor and country Y uses 16 units of labor.…

A: When a country has low absolute disadvantage in the production of a Good A in comparison to the…

Q: following table, select the amount of each good that each country exports and imports in the boxes…

A: A country has a comparative advantage in manufacturing that good if the opportunity cost of…

Q: Two countries (A and B) produce tea and oranges using labor. The number of hours of labor required…

A: