Please read carefully and solve I will definitely rate. Thank you 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 D and for the United States is alternative S.China Production PossibilitiesProductB.DF8,000ApparelChemicals(tons)6,000818,0004,000122,00041620U.S. Production PossibilitiesProductApparelChemicals(tons)RV30,00018,e001212,0000186,0002424,000630Instructions: Enter your answers as whole numbers.a. Are comparative-cost conditions such that the two countries should specialize?(Click to select)If so, what product should each produce?China should produce (Click to select) .The United States should produce (Click to select)b. What is the total gain in apparel and chemical output that would result from such specialization?Apparel:unitsChemicals:ton(s) Instructions: Enter your answers as whole numbers.a. Are comparative-cost conditions such that the two countries should specialize?(Click to select) :If so, what product should each produce?China should produce IClick to select) :The United States should produce Click to select) :b. What is the total gain in apparel and chemical output that would result from such specialization?Apparel:unitsChemicals:ton(s)c. What are the limits of the terms of trade?Junits of apparel for 1 ton of chemicals and|units of apparel for 2 tons of chemicals.Suppose that the actual terms of trade are 1,000 units of apparel for 1% tons of chemicals and that 4,000 units of apparel areexchanged for 6 tons of chemicals. What are the gains from specialization and trade for each nation?(Click to select) e has a gain ofunits of apparel.(Click to select): has a gain ofton(s) of chemicals.

* SOLUTION :- * From given data, (A) We observe that the constant opportunity cost for producing…

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 D and for the United States is alternative S. China Production Possibilities Product Аpparel Chemicals(tons) B. D F 10,000 8,000 6,000 8 4,000 12 2,000 4 16 20 U.S. Production Possibilities Product R V 30,000 Apparel Chemicals(tons) 18, e00 12 12,0000 18 6,000 24 24,000 6 30 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) If so, what product should each produce? China should produce (Click to select) £) The United States should produce Click to select) b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units

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 D and for the United States is alternative S. China Production Possibilities Product Аpparel Chemicals(tons) B. D F 10,000 8,000 6,000 8 4,000 12 2,000 4 16 20 U.S. Production Possibilities Product R V 30,000 Apparel Chemicals(tons) 18, e00 12 12,0000 18 6,000 24 24,000 6 30 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) If so, what product should each produce? China should produce (Click to select) £) The United States should produce Click to select) b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units

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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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.
Does intra-industry trade contradict the theory of comparative advantage?
How does comparative advantage lead to gains from trade?
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
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.
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.
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.
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.
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
Wat's Production Possibilities Product A B C D E F Rice 750 600 450 300 150 0 Corn 0 50 100 150 200 250 Xat's Production Possibilities Product A B C D E F Rice 2,500 2,000 1,500 1,000 500 0 Corn 0 100 200 300 400 500 The hypothetical nations Wat and Xat have the production possibilities for rice and corn given in the accompanying tables. The mutually beneficial terms of trade will be Multiple Choice less than 2 units of rice for 1 unit of corn. greater than 4 units of rice for 1 unit of corn. between 3 and 5 units of corn for 1 unit of rice. between 3 and 5 units of rice for 1 unit of corn.
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..
Are the following statements true or false? Explain ineach case.a. “Two countries can achieve gains from trade evenif one of the countries has an absolute advantagein the production of all goods.”b. “Certain talented people have a comparativeadvantage in everything they do.”c. “If a certain trade is good for one person, it can’tbe good for the other one.”d. “If a certain trade is good for one person, it isalways good for the other one.”e. “If trade is good for a country, it must be good foreveryone in the country