Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day, and a worker in Felinia can produce either 5 blankets or 1 meal per day. Each nation has 10 workers. For many years, the two countries traded, each completely specializing according to their respective comparative advantages. Now war has broken out between them and all trade has stopped. Without trade, Caninia produces and consumes 10 blankets and 40 meals per day and Felinia produces and consumes 25 blankets and 5 meals per day. The war has caused the combined daily output of the two countries to decline by __________?

Q: n Germany it takes three workers to make one television and four workers to make one video camera.…

A: TV Video game Germany 3 4  Poland 6 12

Q: Suppose that each country completely specializes in the production of the good in which it has a…

A: The economic theory proposes that, if nations apply the standard of comparative advantage, the…

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: Suppose Morgan can produce 50 pizzas or 200 beers in a day and Jack can produce 10 pizzas or 100…

A: An individual has the comparative advantage if it can produce a good at lower 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: Give a viable trade agreement for these two countries, which shows that both countries are better…

A: A country will gain from trade when it will have comparative advantage. Both countries will gain if…

Q: A country should specialize in the production of the good in which it has the lowest opportunity…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: 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: The country of "Econoland" can use its resources to produce either 500 tons of crab or 200 tons of…

A: Here, Two countries are given as Econoland and Arcadonia, which are producing two goods as crab and…

Q: Freedonia has a comparative advantage in the production of production of , while Sylvania has a…

A: Comparative advantage theory is based on a country's ability to produce a particular good or service…

Q: Consider a two country, two goods, one factor (labor) model of international trade. Suppose home…

A: We are authorized to answer three subparts at a time since you have not mentioned which part you are…

Q: Who has the absolute advantage in the production of cars?   Who has the absolute advantage in the…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Consider two nations, Nation A and Nation B: "Excellent," the representative from Nation A says. "We…

A: The theory of comparative advantage suggests that countries should specialize in the production of…

Q: Suppose an economist develops an international trade model based on the assumption that there are…

A: The Economist mostly considered only two countries and two goods for the better understanding of the…

Q: Consider a two-country, two-goods world, and the countries face increasing opportunity costs. Both…

A: Introduction We have given a two country and two goods world. Both countries face increasing…

Q: Your roommate is a better cook than you are, but you can clean more quickly than your roommate can.…

A: The specialization would result in the comparative advantage which causes the countries  to produce…

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

A:

Q: Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a brazillian…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Labor productivity coefficients for the US and Brazil are given by the following table: Country…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Japan, one worker can make 5 tons of rubber or 30 radios. In Malaysia, one worker can make 4 tons of…

A: An absolute advantage refers to the competitive advantage of a firm when it is able to produce more…

Q: Consider a two country, two goods, one factor (labor) model of international trade. Suppose home…

A: The following table represents the output per labor in home and foreign country: 1) The opportunity…

Q: If each country specializes in the good in which it has a comparative advantage,....will gain from…

A: Introduction According to comparative advantage, countries will trade with others, exporting…

Q: What is one possible price of capital-intensive goods (in terms of labor-intensive goods) that would…

A: In country A,  1 ton of capital-intensive goods  =200/200 =  1 ton of labor intensive good In…

Q: From the trade model, given the countries are at least a bit different from each…

A: A Ricardian trade model demonstrates how trade takes place between two countries and two products…

Q: Two countries are willing to trade and they have the following information: Country A produces 1000…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: Suppose the United States can produce cars at an opportunity cost of two computers for each car it…

A: Given information: The United States produces either 2 computers or 1 car The Mexico produces…

Q: Automobiles                 Computers…

A: According to the question, it is given that :   Automobiles Computers USA 20 15 Germany  15 5…

Q: Suppose Canada can produce cars at an opportunity cost of 2 computers for each car it produces.…

A: The comparative advantage is the ability of a country to produce the commodity at the least…

Q: England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 40…

A: Absolute advantage is the benefit a country has in producing a good more efficiently than other…

Q: In a two-product, comparative advantage model with country A having comparative advantage in wheat…

A: International trade agreements govern the exchange of goods and services between two or more…

Q: American worker takes 20 hours to produce one computer and 300 hours to produce an RV. A Japanese…

A: A American worker takes 20 hours to produce one computer and 300 hours to produce an RV A Japanese…

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: Assume that there are two countries, Country A, which earns $5,000 per capita GDP, and Country B,…

A: Comparative advantage: A country is said to be experiencing comparative advantage over another…

Q: Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523…

A: The cost of producing 1 unit of food in terms of how many fuels can be calculated as follows:…

Q: Suppose that each country decides to specialize in the production of the good un which it has the…

A: Given: Production possibility:   Car Aircraft Japan 250 150 Sweden 100 300

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

A: a) If China uses all resources in producing only Apparel, China can produce 30 thousands of apparel…

Q: Assume output was initially 100 wheat and 25 TV's in Country A and 40 wheat and 40 TV's in Country…

A: The production frontier of the two countries are given in the figure in which the graph is steeper…

Q: The U.S. and Canada both produce aircraft engines and tons of chemicals, which are sold for the same…

A: Absolute advantage in teade theory means producing more quantity that the other entity with the same…

Q: Maldonia has a comparative advantage in the production of while Lamponia has a comparative advantage…

A: Introduction: The potential benefits that an individual, investor, or organization loses out on by…

Q: Susan can brew 5 gallons of root beer in an hour or she can make 4 pizzas in an hour. Becky can brew…

A: Opportunity cost (OC) of 5 Beers is 4 Pizzas for Susan. Therefore, Opportunity cost of 1 beer will…

Q: According to the concept of comparative advantage, a good should be produced in that nation where:…

A: When a participant could generate anything at a cheaper price than someone else individual has a…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.