Suppose that two countries have the following production possibilities: Smartphones Refrigerators Country A 150 50 Country B 200 100 Country A has the absolute advantage in production of Country has the comparative advantage in producing refrigerators Country should be specializing in production of smartphones. If the price in international trade is 1 refrigerator = 4 smartphones, then which %3D country will benefit from the international trade? Answer: Assume that country A purchases the new technology of smartphones production. As a result of this change, other things being the same, the price for refrigerators in the international trade will become

Q: In a day, Julia can produce 12 bushels of wheat or 4 pounds of meat while Carlos can produce 10…

A: Opportunity cost in general terms can be understood as the benefits of a good or commodity lost due…

Q: Suppose that Greece and Sweden both produce rye and shoes. Greece's opportunity cost of producing a…

A: If a country has a lower opportunity cost of producing the good, it is said to have a comparative…

Q: Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese…

A: International trade benefits all the member nations involved in trade because international trade…

Q: Assume that: • Country A can produce 200 units of grapes or 400 units of wool. • Country B can…

A: 2. A nation's comparative advantage can be identified by computing the opportunity cost of producing…

Q: COFFEE (Millions of pounds) 32 28 24 20 0 0 PPF 4 Freedonia 8 12 16 20 24 LEMONS (Millions of…

A: Given that the countries Freedonia and Desonia are producing lemons and coffees (in millions of…

Q: United States can produce either 10 units of bread or 30 units of steel per labour hour. Canada can…

A: The given information can be summarised in the table below :-   Bread Steel US 10 30 Canada…

Q: The Table below shows the amount of labor hours needed to produce cars and airplanes by Japan and…

A: In the international market, absolute advantage is the situation when a country has the ability to…

Q: Suppose that Portugal and Switzerland both produce beer and stained glass. Portugal's opportunity…

A: The countries involve in trade. Trade is very beneficial for all countries. It improves the market.…

Q: Analyze the following (2x2) matrix. Identify the countries having certain advantages. Moreover,…

A: The theory of Absolute advantage is created by Adam Smith. If a country produces more of a good than…

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

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

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: Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Fredonia,…

A: Absolute advantage refers to the ability of a country to produce goods more efficiently or more…

Q: Assume that Germany has 1200 units of labor available and it can produce two goods: apples and…

A: Comparative advantage refers to the phenomenon where the country can produce the good with the…

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

A: The exchange of goods and services between two or more nations in the world is referred to as…

Q: (d) Which country has the comparative advantage in food? In fuel? Explain. (e) Which good(s) should…

A: (d)   According to Ricardian Theory, international trade is beneficial not only if the two countries…

Q: try A having comparative advantage in wheat and country B in térs, according to the…

A: Disclaimer- “Since you have asked multiple question, we will solve the only first question for you…

Q: Relative to China, in which industries do you think the US has a comparative advantage (in which…

A: US is a developed and one of the most developed economy in the world.

Q: The countries of Libya and Egypt are small neighbor countries in the Africa continent. Both produce…

A:

Q: Maldonia Desonia 48 48 42 42 36 36 PPF 30 30 24 24 18 PPF 18 12 12 --- -- --- -- 6 6 12 18 24 30 36…

A: Without trade, a country consumption and production point remains the same but with trade,…

Q: 3. Absolute and comparative advantage Consider two neighboring island countries, Charisma and…

A: Absolute advantage refers to the competitive advantage of a firm when it has the ability to produce…

Q: Refer to table below, answer questions Russia                China Steel Corn      Steel  Corn 30…

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

Q: Consider two countries, Spain and Norway, that use labour as an input to produce two goods: shoes…

A: If a nation utilizes less resources to create a product, it has an absolute advantage over another…

Q: Maldonia Desonia 48 48 42 42 36 36 PPF 30 30 24 24 18 PPF 18 12 12 A. -- - --- -- 6 6. 12 18 24 30…

A: The production possibility curve of each country shows the combination of two goods a country can…

Q: Suppose that Portugal and Germany both produce beer and wine. Portugal's opportunity cost of…

A: Answer: Fill in the blanks: Portugal has a comparative advantage in the production of wine as its…

Q: 10)Suppose that in a three-hour block of time you can either make 2 batches of chocolate chip…

A: The comparative advantage theory was given by David Ricardo. This theory shows the country's…

Q: Output per Hour Worked    United States Mexico Computers (unit) 3 1 Shoes (pairs) 6 3…

A: The units of production of computers and shoes in given for United States and Mexico.

Q: 56 56 48 48 PPF 40 40 32 32 24 PPF 24 16 16 - -- -- -- - 8 16 24 32 40 48 56 64 16 24 32 40 48 56 64…

A: Opportunity cost refers to the loss due to giving up the best alternative in making a decision.

Q: State what the theory of comparative advantage forecasts: When there are two countries A and B, and…

A: Comparative cost advantage theory was propounded by David Ricardo. This is an important theory of…

Q: Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in…

A: Each country will specialize in the production where it has comparative advantage. In that way…

Q: Solve the attahment.

A: David Ricardo's theory of comparative advantage provides a paradigm for international trade between…

Q: Assume the following information shows the output of 2 goods in 2 countries before specialization.…

A: Disclaimer: Since you have posted questions with multiple sub-parts, we will solve the first three…

Q: The only two countries in the world, Alpha and Omega, face the following production possibilities…

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

Q: 3. Are the following statements true or false? Explain in each case. (a) "Two countries can achieve…

A: Trade: Exchange includes exchanging products or administrations starting with one individual or…

Q: Consider a world with two goods (steel and wine). There are two countries (Germany and France) which…

A: According to guidelines, only first 3 subparts needs to be answered. Subpart b has 3 subparts. So,…

Q: Labour hours needed to make 1 unit Cars Airplanes Amount producedin 24 hours: Airplanes Cars Canada…

A: Comparative advantage is theory which tells about that a country should export that goods and…

Q: Consider a world with two goods (steel and wine). There are two countries (Germany and France) which…

A: (a) As given in the question, steel is capital intensive good which is exported by Germany and wine…

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

A: Comparative Advantage is defined as a country's ability to produce a good or a service at a lower…

Q: Output per worker Country ... Australia Brazil 200 Sleds Clarinets 300 2 Good Suppose that Australia…

A: Absolute advantage and comparative advantage are two important concepts in economics and…

Q: Suppose that Austria and Belgium have the unit labor requirements for producing steel and brooms…

A: The free trade refers to the free movement of goods and services from one country to other country.…

Q: Suppose a capital abundant country, such as Canada, enters into free trade with a natural resource…

A: An economic entity is said to possess a comparative advantage in the production of a good or service…

Q: 5. Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a Brazilian…

A: An absolute advantage in the production of a good or service is secured when an individual or…

Q: Comparative Advantage: Suppose that the United States and Switzerland produce bicycles and chocolate…

A: Country U has absolute advantage in both the products as production per worker per year is higher…

Q: Suppose that Spain and Austria both produce rye and stained glass. Spain's opportunity cost of…

A: Comparative advantage is when nation is able to produce a good at a lower opportunity cost.

Q: What is the trade balance between the U.S. and China from 2018 to 2020? Graph the year and trade…

A: As per the guidelines only the first question can be answered. Kindly repost the questions. Trade…

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: With respect to Table 2.5, indicate in each case the commodity in which each nation has a…

A: 1) Absolute advantage in one commodity implies which country can produce more of the great with the…

Q: Suppose that Portugal and Austria both produce rye and cheese. Portugal's opportunity cost of…

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