(Table) Based on the table, what is Mexico's opportunity cost of making one airplane: Canada's Production Possibilities Tons of Steel Airplanes 15 10 4 0. 12 Mexico's Production Possibilities Tons of Steel Airplanes 6. 6. O A. 2 tons of steel. O B. 4 tons of steel O C. 2 airplanes. O D.1 airplane. O E. 1 ton of steel. 42TO 42

(Table) Based on the table, what is Mexico's opportunity cost of making one airplane: Canada's Production Possibilities Tons of Steel Airplanes 15 10 4 0. 12 Mexico's Production Possibilities Tons of Steel Airplanes 6. 6. O A. 2 tons of steel. O B. 4 tons of steel O C. 2 airplanes. O D.1 airplane. O E. 1 ton of steel. 42TO 42

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 19CTQ: Look at Exercise 33.2. Compute the opportunity costs of producing sweaters and wine in both France...

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4. ‘The world’s poorest countries cannot find anything to export. There is no resource that is abundant, certainly not capital or land, and in small poor nations such as Guatemala, not even labour is abundant.’ Discuss (assume Guatemala is the poor country and United states is the rich country)
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.
09. If Portugal has a total of 90 man-hours of resources available for production, while England has only 30, what are the resource costs of wine and cloth ? a) wine costs 2 man-hours/bottle and cloth costs 6 man-hours/yard in Portugal. b) wine costs 1 man-hour/bottle and cloth costs 1 man-hour/yard in Portugal. c) cloth costs 2 man-hours/yard and wine costs 1 man-hours/bottle in Portugal. d) wine costs 1/2 yards/bottle and cloth costs 2 bottles/yard in Portugal.
1. International economics refers to? 2. International economics is about how nations interact through? 3. What is the problem that will raise due to the economic interaction between several countries? 4. What are the two types of international economics? 5. Who sells what to whom has been a major interest in? 6. When imports are more than exports in value, it may be offset by net inflows of financial assets, this refer to which type of trade balance? 7. When imports are less than exports in value, it would not offset by net inflows of financial assets, this refer to which type of trade balance? 8.What is the risk that a domestic capital market would not face compared to international capital market?
5) Suppose that the United States has an absolute advantage over Mexico in producing both agriculturaland manufactured goods. In the U. S., the opportunity cost of 1 unit of agricultural output is 2 units ofmanufactured goods. In Mexico, the opportunity cost of 1 unit of agricultural output is 1.5 units ofmanufactured goods. Total production in the U. S. and Mexico will be maximized ifa. the U. S. specializes in both types of outputb. Mexico specializes in both types of outputc. the U. S. specializes in agricultural goods and Mexico specializes in manufacturedgoodsd. the U. S. specializes in manufactured goods and Mexico specializes in agriculturalgoodse. each country achieves self-sufficiency
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…
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?
11. If Portugal has a total of 180 man-hours of resources available for production, while England has only 120, what are the resource costs of wine and cloth? a) wine costs 2 man-hours/bottle and cloth 6 man-hours/yard in Portugal. b) wine costs 1 man-hour/bottle and cloth is 1 man-hour/yard in England. c) cloth costs 4 man-hours/yard and wine 2 man-hours/bottle in Portugal. d) wine costs 1/2 yards/bottle and cloth 2 bottles/yard in Portugal.
(A) what percentage of this total was produced by the three largest economies shown in this bar graph? (b)what percentage of this total was produced by the three smallest economies shown in this bar?
11 A trader has an absolute advantage in orange production if his unit-labor requirement in oranges is _____ and his labor productivity is _____ A. lower; higher B. higher; lower C. lower; lower D. higher; higher E. moderate; moderate
25. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the comparative advantage in wine? a) Portugal b) England c) Both d) Neither e) Cannot tell
How can there be any economic gains for a country from both importing and exporting the same good, like cars?