In the no specialization-no trade case, country X produces and consumes 60 units of good A and 10 units of good B. Country Y produces and consumes 20 units of good A and 20 units of good B. If the two countries specialize and trade, how many more units of good B will country X consume?
Q: Nation alpha can produce either 3 units of good X or 1 unit of good Y with 1 hour of labour whereas…
A: In one hour of labor:Nation alpha can produce= 3 units of good X or 1 unit of good YNation beta can…
Q: Explain why it is possible for a country to have an absolute advantage in all goods, and yet it is…
A: The absolute advantage is the ability of an economy to produce commodities more efficiently than its…
Q: Suppose two roommates, Sam and Terry, agree that they should clean the apartment each week. It takes…
A: Comparative Advantage The capacity of an economy/individual to produce a certain item or service at…
Q: Between two, the producer that requires a smaller quantity of inputs to produce a good Has an…
A: In a market, producers cam gain different types of competitive advantage based on their…
Q: n the Heckscher-Ohlin-Vanek model with trade a country that is labour abundant will export the…
A: Heckscher-Ohlin-Vanek model states that trade results on account of the different relative prices of…
Q: How do comparative advantage and absolute advantage differ? Absolute advantage means more can be…
A: International trade is the exchange of commodities and services among countries throughout the…
Q: Assume that country A can use its resources to produce 320 computers or 320,000 books, while country…
A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…
Q: In the following table, enter each country's production decision on the third row of the table…
A: Given: Available hours=4 million labor hours
Q: The table below shows the maximum quantities of two goods that each country can produce. If the…
A: Given Wakanda can produce either 8 tons of Vibranium or 2 tons of gold whereas Zamunda can produce…
Q: Two countries each produce only pork and apples. Peru can produce either 25 thousand pounds of pork…
A: The table shows production of pork and apple by Peru and Nicaragua:
Q: Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies…
A: ‘Comparative advantage’ refers to the ability to produce a good at a lesser ‘opportunity cost’ than…
Q: Suppose that Spain and Switzerland both produce oil and shoes. Spain's opportunity cost of producing…
A: Since Spain has to sacrifice only 3 barrels of oil to produce a pair of shoes in comparison to 11…
Q: Recent economic reports suggest that the U.S. economy is operating its resources efficiently. This…
A: The central problem of economics is the scarcity of resources. The unlimited wants and the limited…
Q: Using the information provided in the table below, answer the following questions.…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: If the state of Texas has a lower opportunity cost for producing beef compared to Alaska, then...…
A: Absolute advantage and comparative advantage are two important concepts in international trade.…
Q: Tina can allocate her 8-hour day between baking and cooking. Each hour devoted to baking yields 2…
A: First, we determine the output table which shows the maximum amount of cake and plates of food can…
Q: Suppose Country A can create 200 tons of capital-intensive goods or 200 tons of labor-intensive…
A: Country A can create 200 tons of capital-intensive goods or 200 tons of labor-intensive goods in one…
Q: mya and Donovan produce two goods in an 8 hour day. Mya can produce 10 capital or 55 consumables and…
A: The trade becomes beneficial when the individuals or nations specialize in producing goods in which…
Q: When two countries decide to specialize and exchange, both countries will be able to consume a. at…
A: The decision to specialization and engages in trade by two countries would better off both of them…
Q: Suppose that Greece and Sweden both produce oil and cheese. Greece's opportunity cost of producing a…
A: It is given that Greece’s opportunity cost of producing a pound of cheese is 4 barrels of oil and…
Q: States can produce a maximum of 600 bushels of barley or a maximum of 600 bushels of corn. Mexico…
A: The United States In USA the Barley opportunity cost are as follows 600 bushels of barley = 600…
Q: mya and Donovan produce two goods in an 8 hour day. Mya can produce 10 capital or 55 consumables and…
A: An individual can have an absolute advantage over another individual in the manufacturing of a…
Q: Suppose that an hour of work in Germany can produce 5 pastries or 4 sausages. In Denmark, an hour of…
A: Hey, Thank you for the question. According to our policy, we can only answer 3 subparts per…
Q: Two countries produce two goods and they each have 3 million hours of labor. Consider the table…
A:
Q: Initially, suppose Bellissima uses 1 million hours of labor per week to produce corn and 3 million…
A: Solution- Given in the questionNo. of hours uses per week by Bellissima to produce corn = 1 million…
Q: According to the principle of comparative advantage, - countries should specialize in the…
A: According to the law of comparative advantage, In the 2x2 model, even if one nation is less…
Q: Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies…
A: Opportunity cost is the forgone profit that the producer would have gained, it the second best…
Q: Kelly and David are both capable of repairing cars and cooking meals. Which of the following…
A: Absolute cost advantage: - it is a principle of international trade given by Adam Smith which shows…
Q: Microeconomics is the study of: The gains from trade since we can only consume what we produce…
A: Micro economics facilitates easy understanding of our economic system.
Q: What is Production Efficiency and Inefficiency in economics? Explain with the help of a diagram.…
A: A PPF or production possibilities frontier is a graphical representation of the production of…
Q: Suppose that Country A can produce 6060 bags of sugar or 3030 bags of flour per worker hour. Country…
A: Answer: Given, Country Bags of sugar per hour Bags of flour per hour A 60 30 B 40 10 Let…
Q: When can two countries gain from trading two goods? when the first country can only produce the…
A: Some of the theories of trade are absolute advantage, comparative advantage theories on the basis of…
Q: Without trade, Jake consumes 20 pounds of green beans and 80 pounds of corn, and Jane consumes 40…
A: Trade tends to raise the total international output by specialization.
Q: Jason and Holly produce lollipops and chocolates. Their production possibilities are given by the…
A: The theory of comparative advantage suggests that countries should specialize in the production of…
Q: Suppose there are two countries, the U.S. and Mexico, each producing two goods, computers (C) and…
A: U.S can produce computer using 1 laborMexico can produce computer using 8 laborsThus, it implies U.S…
Q: Consider a simple economy consisting of two countries, England and France. England has 25 workers…
A: Since you have asked multi-subparts question, as per answering guideline, we are supposed to solve…
Q: If country ABC can produce a unit of good 1 by sacrificing fewer units of good 2 than can country…
A: Comparative advantage refers to the ability to produce the good in a country at lower opportunity…
Q: Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two…
A: The country which produces more Taco has absolute advantage in Taco. So, United States has absolute…
Q: Suppose there are only two goods produced in an economy: phones and meals. Maria is adept at…
A: Given that there are only two goods produced in an economy: phones and meals. Maria is adept at…
Q: Columbia and France each have 10,000 hours of labor per month. In France, producing one pound coffee…
A: 1. Comparative advantage: When a country has lower opportunity cost of producing a commodity than…
Q: Frances's opportunity cost of brewing a gallon of root beer is and Latasha's opportunity cost of…
A: Frances opportunity cost of brewing of root beer is 0.5 hours to make a pizza Explain - 4 hours to…
Q: Based on your answer to the last question, which of the following prices of trade (that is, price of…
A: Answer in step 2.
Q: The U.S. can produce 100 pounds of beef or 10 cars; in contrast Germany can produce 40 pounds of…
A: As given,
Q: In this assignment, you will demonstrate your ability to draw a simple production possibilities…
A: From this data, we understand that the nation has 12 units of labor, which can be used to produce…
Q: An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Suppose that an hour of work in Brazil can produce 1 pound of coffee or 4 pounds of sugar. In…
A: Hey, Thank you for the question. According to our policy, we can only answer 3 subparts per…
In the no specialization-no trade case, country X produces and consumes 60 units of good A and 10 units of good B. Country Y produces and consumes 20 units of good A and 20 units of good B. If the two countries specialize and trade, how many more units of good B will country X consume?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- EXPLAIN THE TABLE BELOW. WHAT HAVE YOU OBSERVED.which of the following is NOT a problem in using economic statistics? a) using GDP statistics to compare income in the U.S. and Bangladesh may be inaccurate because household production (non-market) is a much higher percentage of the economy of Bangladesh. b) Using the published CPI statistics to calculate changes in the purchasing power of your income is inaccurate because the CPI is calculated for the "average consumer's" spending pattern. c)The same statistics are often interpreted differently by different politicians and reporters, which makes it difficult to understand what is really happening without understanding how the statistics were calculated. d) Government statisticians in the U.S. frequently distort the numbers.Use the hypothetical data in the table to answer the questions. City Snowfall (inches) January February Boston, MA 34 62 Buffalo, NY 75 95 Cincinnati, OH 20 45 What was the average snowfall in Buffalo over this period? Round your answer to the first decimal. average snowfall: inches If the March data on snowfall is below the average that you calculated, what will happen to the average? The monthly average will fall. The monthly average will rise. The monthly average will not change.
- 2. The following table shows an example of gross domestic product values for five countriesfrom 2005 to 2010 in equivalent U.S. dollars ($). a. How could you improve the readability of this table?b. The file GdPyears contains sample data from the United Nations Statistics Divisionon 30 countries and their GDP values from 2005 to 2010 in U.S. dollars ($). Create atable that provides all these data for a user. Format the table to make it as easy to readas possible.The table below is extracted from Khada Republic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow. Item Base year 2019 2020 Production Price Production Price Used cloth (units) 4,000 50.00 5000 60.00 Components used tractor factory production 8,000 500.00 11000 1,200.00 Cloth 8,000 25.00 12,000 30.00 Beef gifts during cultural festival 1,500 2.00 1,700 3.00 Milk litres 5,000 1.30 7,000 2.50 Computers 2000 500.00 2,500 600.00 Printers 500 300.00 400 355.00 Raw materials for car assembling plant 4500 250.00 4450 300 Calculate Khada Republic’s nominal GDP, real GDP in 2020 and GDP deflatorThe table below is extracted from Khada Republic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow. Item Base year 2019 2020 Production Price Production Price Used cloth (units) 4,000 50.00 5000 60.00 Components used tractor factory production 8,000 500.00 11000 1,200.00 Cloth 8,000 25.00 12,000 30.00 Beef gifts during cultural festival 1,500 2.00 1,700 3.00 Milk litres 5,000 1.30 7,000 2.50 Computers 2000 500.00 2,500 600.00 Printers 500 300.00 400 355.00 Raw materials for car assembling plant 4500 250.00 4450 i. Calculate Khada Republic’s nominal GDP, real GDP in 2020 and GDP deflator ii. Examine the importance of a GDP deflator for Khada Republic
- The table below is extracted from Khada Republic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow. Item Base year 2019 2020 Production Price Production Price Used cloth (units) 4,000 50.00 5000 60.00 Components used tractor factory production 8,000 500.00 11000 1,200.00 Cloth 8,000 25.00 12,000 30.00 Beef gifts during cultural festival 1,500 2.00 1,700 3.00 Milk litres 5,000 1.30 7,000 2.50 Computers 2000 500.00 2,500 600.00 Printers 500 300.00 400 355.00 Raw materials for car assembling plant 4500 250.00 4450 300 Calculate Khada Republic’s nominal GDP, real GDP in 2020 and GDP deflator 2) Examine the…In the economy of Russia in 2015, consumption was $3000, GDP was $6500, government purchases were $2000, imports were $2000, and investment was $1000. What were Russia’s exports in 2015? Group of answer choices $2500 -$2500 $500 -$500Article Price 2003 Amount 2003 Price 2006 Amount 2006 nails (dozen) $2.49 6 $2.69 6 wire(kg) $3.29 4 $3.59 5 wire rod(kg) $1.59 2 $1.79 3 rings(pzas) $1.79 3 $2.29 4 The data are the prices in pesos of a group of products used in the housing construction industry and the quantities consumed in the years 2003 and 2006Based on the year 2003, determine:a) Simple indexes of prices, quantity and value of ringsb) Simple wire price, quantity and value indicesc) Laspeyres price indexd) Paasche price indexe) Fisher Price Indexf) Relative weighted average of prices thank you, I only need the d, e, f.
- i am having trouble with this question macroeconmics chapter 5 question 3How the GDP of Qatar grew due to hosting of FIFA WORLD CUP. Explain with data and graphs in 1000 wordYou are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. 2000 2018 New businesses 1,240 1,325 Business failures 600 496 State income tax receipts ($ millions) 185.2 220.8 College student enrollment 242,299 291,291 State sales tax ($ millions) 55.1 57.4 The weights you assign are: new businesses 15%, business failures 10%, income tax 42%, enrollment 13% and sales tax 20%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) c. Interpret the indexes. (Round your answer to 2 decimal places.) Economic activity has (increased or decreased) _____%…