Just need B The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization andtrade the optimal product mix for China is alternative B and for the United States is alternative U.China Production PossibilitiesProductAApparelChemicals (tons)120,00096,00072,00048,00024,00024487296120U.S. Production PossibilitiesProductR.WApparelChemicals(tons)40,00032,00024,00016,00008,0001632486480Instructions: Enter your answers as whole numbers.a. Are comparative-cost conditions such that the two countries should specialize?YesIf so, what product should each produce?China should produce apparel OThe United States should produce chemicalsb. What is the total gain in apparel and chemical output that would result from such specialization?Apparel: 224000 8 unitsChemicals:144 8 ton(s)c. What are the limits of the terms of trade?1000 O units of apparel for 1 ton of chemicals and1000 O units of apparel for 2 tons of chemicals.

China can produce either 120,000 units of Apparel or 120 tons of chemicals US can produce either…

The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A E Apparel Chemicals (tons) 120,000 96,000 72,000 48,000 24,000 24 48 72 96 120 U.S. Production Possibilities Product R V W

The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A E Apparel Chemicals (tons) 120,000 96,000 72,000 48,000 24,000 24 48 72 96 120 U.S. Production Possibilities Product R V W

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 31P: Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil...

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Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
Does intra-industry trade contradict the theory of comparative advantage?
2. The following are production possibilities tables for China and the United States. Assume that before specialization and trade the optimal product-mix for China is alternative B and for the United States alternative U. Production Possibilities: China Product A B C D E F Apparel 150,000 120,000 90,000 60,000 30,000 0 Chemicals (in Tons) 0 30 60 90 120 150 Production Possibilities: United States Product R S T U V W Apparel 50,000 40,000 30,000 20,000 10,000 0 Chemicals (in Tons) 0 20 40 60 80 100 c. What are the limits of the terms of trade?Limits of the terms of trade = 1,000 units of apparel for____ ton of chemicals and 1,000 units of apparel for_____ tons of chemicals.
Table 1: Production Capacity of COVID-FREE LAND.Use information in Table 1 above to answer the following questions:a. Using the above figures, graph the production possibilities Frontier (PPF) of COVI_LAND 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 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) toilet paper sanitizers 30000 0 28000 1000 24000 2000 18000 3000 10000 4000 0 5000
The trading possibilities for two nations, Portugal and Italy are given below. Assume that prior to specialization and trade Italy is at position C and Portugal is at position C. A B C D E F Italy Loaves 30 24 18 10 6 0 Fishes 0 6 12 18 24 30 A B C D E F Portugal Loaves 10 8 6 4 2 0 Fishes 0 4 8 12 18 20 Before specialization, the cost ratio, loaves per fishes in Italy is
Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons. Gamma production possibilities: A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma production possibilities: A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 What are the limits of the terms of trade between Gamma and Sigma? 1 tea=2 pots to 1 tea=6 pots 1 tea=3 pots to 1 tea=6 pots 1 tea=2 pots to 1 tea=3.5 pots 1 tea=1 pot to 1 tea=3 pots
The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be Multiple Choice 40 tons of pots. 20 tons of tea and 20 tons of pots. 20 tons of tea. 40 tons of tea.
Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina. North Cantina Production Possibilities A B C D E F Capital Goods 5 4 3 2 1 0 Consumer Goods 0 10 18 24 28 30 South Cantina Production Possibilities A B C D E F Capital Goods 5 4 3 2 1 0 Consumer Goods 0 8 15 21 25 27 Refer to the tables. If North Cantina is producing at production alternative A, the opportunity cost of the first unit of consumer goods will be Multiple Choice 1/5 of a unit of capital goods. 1 unit of capital goods. 5 units of capital goods. 1/10 of a unit of capital goods..
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.
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.
19. If production of specific goods exhibit the opportunity for economies of scale (Oil for example), then: A. the countries producing these goods gain from trade while other countries are worse off. B. the countries producing these goods lose from trade while other countries are better off. C. all countries gain from trade but those not producing the goods with economies of scale gain more. D. all countries gain from trade but those producing the goods with economies of scale gain more. Please give correct step by step answer with proper explanation of each option given within 40 50 minutes . Thank you
Refer to table below, answer questions Russia ChinaSteel Corn Steel Corn30 0 60 020 10 40 1010 20 20 200 30 0 30 d) What is the opportunity cost of producing a steel in China? What about corn? e) Which country has comparative advantage in producing steel? f) Which country has comparative advantage in producing corn? g) Draw the production possibilities frontier for both China and Russia.