The basic difference between macroeconomics and microeconomics is that: O A. microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). O B. macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. O c. macroeconomics is concerned with generalization while microeconomics is concerned with specialization. O D. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets).

The basic difference between macroeconomics and microeconomics is that: O A. microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). O B. macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. O c. macroeconomics is concerned with generalization while microeconomics is concerned with specialization. O D. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets).

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 6SCQ: Table 33.15 shows how the average costs of production for semiconductors (the chips In computer...

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The idea that an action should be undertaken if and only if the benefits exceed the costs is known as the concept of Oeconomic efficiency. O public welfare maximization. marginal comparative advantage. O monetary construction of values.
Which of the following statements is true about comparative advantage? O.a) Comparative advantage is interesting theoretically, but it is not relevant when evaluating real-world economic conditions.O.b) Comparative advantage exists whenever one person, firm, or nation can do something at lower opportunity costs than some other individual, firm, or nation.O.c) Comparative advantage exists whenever one person, firm, or nation can do something at higher opportunity costs than some other individual, firm, or nation.O.d) Only technologically advanced economies can have a comparative advantage in the production of a good or service.
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
2. Suppose that the United States and Mexico are the only two countries in the world and that labor is the only productive input. In the United States, a worker can produce 12 bushels of wheat or 2 barrels of oil in a day. In Mexico, a worker can produce 2 bushels of wheat or 4 barrels of oil per day. a. What will be the price ratio between the two commodities (that is, the price of oil in terms of wheat) in each country if there is no trade? b. If free trade is allowed and there are no transportation costs, which commodity would the United States import? What about Mexico? c. In what range would the price ratio have to fall under free trade? Why?
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The table below presents production schedule of apples and bananas in the country of mistania - assume that these are the only two goods that Mistania produces. Each row represents a specific set of apples and bananas that Mistania could produce. Suppose Mistania was currently at Senario C, producing 10 bananas and 80 apples. According to the data in this table, if Mistania wanted to produc 1 more banana, how many fewer apples will it need to produce? Scenario Bananas Apples A 0 100 B 5 90 C 10 80 D 15 70 E 20 60
Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
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