(Table) Based on the table, how would you characterizę absolute advantage for the goods: Canada's Production Possïbilities Tons of Steel Airplanes 15 10 4 12 Mexico's Production Possibilities Tons of Steel Airplanes 6. 4 4 6. OA. Mexico has an absolute advantage over Canada in producing both steel and airplanes. B. Canada has an absolute advantage over Mexico in producing steel but not airplanes. C. No country has an absolute advantage in producing any of the goods O D. Canada has an absolute advantage over Mexico in producing both steel and airplanes.

(Table) Based on the table, how would you characterizę absolute advantage for the goods: Canada's Production Possïbilities Tons of Steel Airplanes 15 10 4 12 Mexico's Production Possibilities Tons of Steel Airplanes 6. 4 4 6. OA. Mexico has an absolute advantage over Canada in producing both steel and airplanes. B. Canada has an absolute advantage over Mexico in producing steel but not airplanes. C. No country has an absolute advantage in producing any of the goods O D. Canada has an absolute advantage over Mexico in producing both steel and airplanes.

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Description: (Table) Based on the table, how would you characterizę absolute advantage for the goods:Canada's Production PossïbilitiesTons of SteelAirplanes1510412Mexico's Production PossibilitiesTons of Steel Airplanes6.446.OA. Mexico has an absolute advantage

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 3SCQ: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine....

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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?
Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage? Explain.
7- : What is the total expenditure made by consumers on the purchase of goods and services called? a) Net foreign trade B) Savings spending NS) Consumption expenditure D) investment expenditure TO) public spending
5. The price of trade Suppose that Ireland and Norway both produce boots and shoes. Ireland's opportunity cost of producing a pair of shoes is 4 pairs of boots while Norway's opportunity cost of producing a pair of shoes is 11 pairs of boots. By comparing the opportunity cost of producing shoes in the two countries, you can tell that has a comparative advantage in the production of shoes and has a comparative advantage in the production of boots. Suppose that Ireland and Norway consider trading shoes and boots with each other. Ireland can gain from specialization and trade as long as it receives more than of boots for each pair of shoes it exports to Norway. Similarly, Norway can gain from trade as long as it receives more than of shoes for each pair of boots it exports to Ireland. Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of boots) would allow both Norway and Ireland to gain…
oblem 1 (Absolute and Comparative Advantage) (Chapter 2) You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom: Labor Hours Required to Produce One Unit The United Kingdom The United States Wheat 2 1 Cloth 6 5 What is the opportunity cost of producing a unit of wheat in the United Kingdom? In the United States? Which country has an absolute advantage in producing wheat? In producing cloth? Which country has a comparative advantage in producing wheat? In producing cloth? Which country should specialize in producing wheat? In producing cloth?
31.If it takes one country one unit of labor to produce either a computer or a TV but it takes the other country three units of labor to produce a computer and four to produce a TV, then the first country has A)a comparative advantage in both goods. B)an absolute advantage in TVs but a comparative advantage in computers. C)an absolute advantage in TVs and computers but a comparative advantage in computers only. D)an absolute advantage in TVs and computers but a comparative advantage in TVs only. 32.If it takes one country two units of labor to produce a computer and three units of labor to produce a TV but it takes the other country three units of labor to produce a computer and four to produce a TV, then the first country has A)a comparative advantage in both goods. B)an absolute advantage in TVs but a comparative advantage in computers. C)an absolute advantage in TVs and computers but a comparative advantage in computers only. D)an absolute advantage in TVs…
5. The price of trade Suppose that Poland and Luxembourg both produce boots and wheat. Poland's opportunity cost of producing a bushel of wheat is 4 pairs of boots while Luxembourg's opportunity cost of producing a bushel of wheat is 12 pairs of boots. By comparing the opportunity cost of producing wheat in the two countries, you can tell that Poland production of wheat and Luxembourg has a comparative advantage in the production of boots. has a comparative advantage in the Suppose that Poland and Luxembourg consider trading wheat and boots with each other. Poland can gain from specialization and trade as long as it receives more than of boots for each bushel of wheat it exports to Luxembourg. Similarly, Luxembourg can gain from trade as long as it of wheat for each pair of boots it exports to Poland. receives more than Based on your answer to the last question, which of the following prices of trade (that is, price of wheat in terms of boots) would allow both Luxembourg and Poland to…
4 A worker in Mexico takes 600 hours to produce a truck and 3 hours to produce a case of beer. A worker in Brazil takes 400 hours to produce a truck and 2 hours to produce a case of beer. a. Which country has comparative advantage in the production of beer? Explain. b. Will these countries trade trucks and beer? Why or why not?
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