The following data outline production choices (A or b. in two nations, Gamma and Sigma. Each nation has a workforce of 10. Output per worker in Sigma A. Output per worker in Gamma Tea Pots 40 Tea Pots 120 120 120 Refer to the data in the table above to answer the following question. What are the limits of the terms of trade between Gamma and Sigma? 1 unit of tea=1 pot to 3 units of tea= 1 pot 1 unit of tea = 3 pots to 1 unit of tea = 6 pots I unit of tea = 1 pot to 1 unit of tea = 3 pots 6 units of tea =1 pot to I unit of tea = 1 pot 6 units of tea =1 pot to 6 pots = 1 unit of tea %3D !3!

The following data outline production choices (A or b. in two nations, Gamma and Sigma. Each nation has a workforce of 10. Output per worker in Sigma A. Output per worker in Gamma Tea Pots 40 Tea Pots 120 120 120 Refer to the data in the table above to answer the following question. What are the limits of the terms of trade between Gamma and Sigma? 1 unit of tea=1 pot to 3 units of tea= 1 pot 1 unit of tea = 3 pots to 1 unit of tea = 6 pots I unit of tea = 1 pot to 1 unit of tea = 3 pots 6 units of tea =1 pot to I unit of tea = 1 pot 6 units of tea =1 pot to 6 pots = 1 unit of tea %3D !3!

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 29P: France and Tunisia both have Mediterranean climates that are excellent for producing/harvesting...

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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?
What is absolute advantage? What is comparative advantage?
What is the Production–possibility frontier curve? Explain it in reference of before Specialization and trade.
Table 1: Production Capacity of COVID-FREE LAND.Toilet Rolls 30,000 28,000 24,000 18,000 10,000 0Sanitizers 0 1,000 2,000 3,000 4,000 5,000Use information in Table 1 above to answer the following questions:a. Using the above figures, graph the production possibilities Frontier (PPF) of COVID_FREELAND (Hint! Use Microsoft Excel, for accuracy)b. In your own words, while making use of the graph that you have created in part a, explain what the PPF is. Cleary state all assumptions and properties of the PPF. c. Normally, the people of COVID-FREE LAND demand of 3,000 sanitizers and 18,000 toilet rolls. Suddenly, there is an outbreak of COVID- 19 and the demand for sanitizers and toilet rolls has increased to 4,000 and 20,000, respectively. How would COVID-FREE LAND meet its new demand. Identify and comprehensively discuss at least three possibilities or ways. State all appropriate assumptions made.
scenario Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.
Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.
ASAP Consider the following PPF. PPF is linear between points A and B, B and C, C and D, D and E. What is an opportunity cost of 1c if currectly producing at c=8
American and Japanese workers can each produce 4 cars a year. An American worker canproduce 10 tons of grain a year, whereas aJapanese workers can produce 5 tons of grain ayear. To keep things simple, assume that eachcountry has 100 million workers.a. For this situation, construct a table analogousto the table in Figure 1.b. Graph the production possibilities frontier ofthe American and Japanese economies.c. For the United States, what is the opportunitycost of a car? Of grain? For Japan, what is theopportunity cost of a car? Of grain? Put thisinformation in a table analogous to Table 1.d. Which country has an absolute advantage inproducing cars? In producing grain?e. Which country has a comparative advantagein producing cars? In producing grain?f. Without trade, half of each country’s workersproduce cars and half produce grain. Whatquantities of cars and grain does each country produce?g. Starting from a position without trade, givean example in which trade makes each country better…
If Nations Quirk and Turk only produce aluminum or oil, the accompanying table shows the maximum output of each nation. Output (Units) Nations Aluminum Oil Quirk 20 40 Turk 30 90 Which one of the following terms of trade is most likely to produce mutually beneficial exchange between the two nations? Multiple Choice 0.5 unit of oil for 1 unit of aluminum 0.5 unit of oil for 2 units of aluminum 1 unit of oil for 0.4 unit of aluminum 1 unit of oil for 4 units of aluminum
Depicted below is the Joint PPF of the three. If currently 400 units of salt r being produced, what is the opportunity cost of the salt? Asap plz
Country Jeans Corn Felicidad 8 32 Bellissima 12 24 Felicidad's opportunity cost of producing 1 pair of jeans is (1/2 , 1/4, 2, 4) of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is ( 1/2 , 1/4, 2, 4) of corn. Therefore, (FELICIDADS, BELLISSIMA) has a comparative advantage in the production of jeans, (FELICIDADS, BELLISSIMA) and has a comparative advantage in the production of corn. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce_______________million pairs per week, and the country that produces corn will produce____________million bushels per week.
Table 1: Production Capacity of COVID-FREE LAND. Toilet Rolls Sanitizers 30,000 0 28,000 1,000 24,000 2,000 18,000 3,000 10,000 4,000 0 5,000 Use information in Table 1 above to answer the following questions: Using the above figures, graph the production possibilities Frontier (PPF) of COVI_LAND (Hint! Use Microsoft Excel, for accuracy) In your own words, while making use of the graph that you have created in part a, explain what the PPF is. Cleary state all assumptions and properties of the PPF. Normally, the people of COVID-FREE LAND demand of 3,000 sanitizers and 18,000 toilet rolls. Suddenly, there is outbreak of COVID-19 and the demand for sanitizers and toilet rolls increased to 4,000 and 20,000, respectively. How would COVID-FREE LAND meet its new demand. Identify and comprehensively discuss at least three possibilities or ways. (Hint: State any appropriate assumptions made).