Suppose that without trade the workers in each country spend half their time producing each good.Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) toindicate this production and consumption point for China.If these countries were open to trade,The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countriesshirts per computer, and the lowest price that makes both countries better off isshirts per computer.better off isTrue or False: There are no longer gains from trade.Suppose that China catches up with American productivity so that a Chinese worker can produce 60 shirts or 30 computers.#O Truewould export shirts andO FalseSearch the web and WindowsÔwould benefit from trade.eGrade It NowSave & ContinueContinue without savingM 8. Problems and Applications Q8Suppose that in a year an American worker can produce 60 shirts or 30 computers and a Chinese worker can produce 60 shirts or 12 computers.There are 1 million workers in each country.Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) tograph the production possibilities frontier for China.Quantity of Computers (Millions)3027242118151296300 10 203040 50 60 70 80 90 100Quantity of Shirts (Millions)U.S. PPFChina PPFUS without Trade✪China without TradeSuppose that without trade the workers in each country spend half their time producing each good.

The value of alternative opportunities foregone and sacrificed to acquire one unit of a commodity is…

Suppose that without trade the workers in each country spend half their time producing each good. Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to indicate this production and consumption point for China. If these countries were open to trade, The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is ✓shirts per computer, and the lowest price that makes both countries better off is shirts per computer. True or False: There are no longer gains from trade. would export shirts and Suppose that China catches up with American productivity so that a Chinese worker can produce 60 shirts or 30 computers. True would benefit from trade. O False

Suppose that without trade the workers in each country spend half their time producing each good. Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to indicate this production and consumption point for China. If these countries were open to trade, The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is ✓shirts per computer, and the lowest price that makes both countries better off is shirts per computer. True or False: There are no longer gains from trade. would export shirts and Suppose that China catches up with American productivity so that a Chinese worker can produce 60 shirts or 30 computers. True would benefit from trade. O False

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 2PA

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Look at Exercise 33.2. Compute the opportunity costs of producing sweaters and wine in both France and Tunisia. Who has the lowest opportunity cost of producing sweaters and who has the lowest opportunity cost of producing wine? Explain what it means to have a lower opportunity cost.
In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine. In Tunisia it takes two workers to produce one sweater, and three workers to produce one bottle of wine. Who has the absolute advantage in production of sweaters? Who has the absolute advantage in the production of wine? How can you tell?
France and Tunisia both have Mediterranean climates that are excellent for producing/harvesting green beans and tomatoes. In France it takes two hours for each worker to harvest green beans and two hours to harvest a tomato. Tunisian workers need only one hour to harvest the tomatoes but four hours to harvest green beans. Assume there are only two workers, one in each country, and each works 40 hours a week. Draw a production possibilities frontier for each country. Hint: Remember the production possibility frontier is the maximum that all workers can produce at a unit of time which, in this problem, is a week. Identify which country has the absolute advantage in green beans and which country has the absolute advantage in tomatoes. Identity which country has the comparative advantage. How much would France have to give up In terms of tomatoes to gain from trade? How much would it have to give up in terms of green beans?
Question 4 There is now also another country, Foreign, there is a labor force of 800. Foreign's unit labor requirement in watermelon production is 5, while in kiwi production it is 1. a) how many units of watermelon can be produced? when the labor in Foreign country only produce watermelon. b) how many units of kiwi can be produced? When all the labor in Foreign country only produce kiwi. c) What is the opportunity cost of watermelon in terms of kiwi in Foreign country? d) Describe the pattern of trade. Home country should produce? Foreign country should produce? Why? e) Show that how both Home and Foreign country gain from trade.
ackground information: A worker in the United States and a worker in China can each produce 1,000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week, and a worker in China can produce 100 cell phones in a week. Answer the following questions based on this information.Part A: If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce? What would be the total number of jeans and cell phones produced by the two countries combined? (Show your work.)Part B: Calculate the opportunity cost of producing jeans for each country. (Show your work.)Part C: Calculate the opportunity cost of producing cell phones for each country. (Show your work.)Part D: Determine how many jeans should be produced by each nation. (Show your work). Part E: If each nation should specialize in producing jeans and cell phones, explain why; use economic terminology you have learned in this unit in your…
1. An American worker can produce either 4 cars or 8 tons of grain a year. A Japanese worker can produce either 4 cars or 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. How Many Workers Needed Workers Needed to Make 1 Car 1 Ton of Grain United States Japan 2.Use the blue line (circle symbol) to graph the production possibilities frontier for the American economy. Then use the green line (triangle symbol) to graph the production possibilities frontier for the Japanese economy. *The Graph includes on the left Cars(Millions) from 0-500 in increments of 50s the bottom of the garph is marked as Grains (Millions Of Tons) from 0-1000 in increments of 100s. 3. Complete the following table by determining the opportunity cost of a car and of…
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