Paul's PPF Sue's PPF Cheese Cheese 100 60 40 30 20 80 Ham 36 90 Ham The graph above shows that Paul has a comparative advantage in the production of [Select] Y and Sue has a comparative advantage in the production of [ Select] cheese both goods neither good ham
Paul's PPF Sue's PPF Cheese Cheese 100 60 40 30 20 80 Ham 36 90 Ham The graph above shows that Paul has a comparative advantage in the production of [Select] Y and Sue has a comparative advantage in the production of [ Select] cheese both goods neither good ham
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 4SCQ: In Germany it takes three workers to make one television and four workers to make one video camera....
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![Paul's PPF
Sue's PPF
Cheese
Cheese
100
60
40
30
20
80 Ham
36
90 Ham
The graph above shows that Paul has a comparative advantage in the production of
[Select]
Y and Sue has a comparative advantage in the production of
[Select]
cheese
both goods
neither good
ham
Paul's PPF
Sue's PPF
Cheese
Cheese
100
60
40
30
20
80 Ham
36
90 Ham
Based on the graph above, which of the following statements is true?
O Paul can only benefit from trading with Sue if a tax is imposed on the goods produced by Sue.
O Since Paul is so uncompetitive compared with Sue, he will be better off by not trading at all with
Sue.
O Even though Sue is more productive than Paul in making cither of the two goods, Paul and Sue can
both still benent from trading with each other.
O Since Sue is more competitive than Paul in both goods, she has nothing to gain by trading with
Paul.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8bc6389e-aa99-4d8d-9b3f-0bd0a828087f%2F182806de-7825-4831-a9ea-544599db0042%2F5wjtqn9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Paul's PPF
Sue's PPF
Cheese
Cheese
100
60
40
30
20
80 Ham
36
90 Ham
The graph above shows that Paul has a comparative advantage in the production of
[Select]
Y and Sue has a comparative advantage in the production of
[Select]
cheese
both goods
neither good
ham
Paul's PPF
Sue's PPF
Cheese
Cheese
100
60
40
30
20
80 Ham
36
90 Ham
Based on the graph above, which of the following statements is true?
O Paul can only benefit from trading with Sue if a tax is imposed on the goods produced by Sue.
O Since Paul is so uncompetitive compared with Sue, he will be better off by not trading at all with
Sue.
O Even though Sue is more productive than Paul in making cither of the two goods, Paul and Sue can
both still benent from trading with each other.
O Since Sue is more competitive than Paul in both goods, she has nothing to gain by trading with
Paul.
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