If the USA could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if: Question 23 options: The USA specializes in potatoes because of its comparative advantage in producing potatoes. The USA specializes in wheat because of its absolute advantage in producing wheat. The USA specializes in wheat because of its comparative advantage in producing wheat. There can be no mutual gains from trade.

Answer: Given, Production per worker: Potatoes Wheat USA 1 ton 0.5 tons Ireland 3 tons 2…

Answered: If the USA could produce 1 ton of…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 1CQQ

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If the USA could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if:

Question 23 options:

	The USA specializes in potatoes because of its comparative advantage in producing potatoes.
	The USA specializes in wheat because of its absolute advantage in producing wheat.
	The USA specializes in wheat because of its comparative advantage in producing wheat.
	There can be no mutual gains from trade.

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