The table suggests that Italy has an absolute advantage over Romania in (footweat, neither product, both products, beef) and a comparative advantage in (footweat, neither product, both products, beef).The table suggests that wages in Italy are (the sameas, higher than, lower than) in Romania.As a result of Romania’s joining the EU, employment in Romania is likely to fall in (the footwear industry, neither industry, both industries, the beef industry) .True or False: The degree of openness of the Romanian economy will not influence the mix of jobs.a)True b)False the footwear industryThe table suggests that Italy has an absolute advantage over Romania inhparative advantage inneither industryboth industriesThe table suggests that wages in Italy arein Romania.the beef industryAs a result of Romania's joining the EU, employment in Romania is likely to fall inTrue or False: The degree of openness of the Romanian economy will not influence the mix of jobs.TrueFalse 8. Comparative advantage and import competitionRomania recently joined the European Union (EU) and faces intense import competition from other EU members, such as Italy. Suppose you have thefollowing data on labor productivity for footwear and beef production in Romania and Italy. Assume that footwear and beef production are measured inconstant dollars reflecting the value of the products.Use the Ricardian model to analyze possible effects on each country's footwear and beef industries when answering the questions that follow.Sales per EmployeeFootwearВeefCountry (Dollars per year) (Dollars per year)Romania50,00040,000Italy84,00042,000The table suggests that Italy has an absolute advantage over Romania inand a comparative advantage infootwearThe table suggests that wages in Italy arein Romania. neither productboth productsAs a result of Romania's joining the EU, employment in Romania is likelybeefTrue or False: The degree of openness of the Romanian economy will not mmuence ne mix of jobs.O TrueO False

Absolute advantage: When a country has absolute superiority in producing a particular commodity…

Answered: The table suggests that Italy has an…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Productivity And Growth

Section: Chapter Questions

Problem 1.2P

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The table suggests that Italy has an absolute advantage over Romania in (footweat, neither product, both products, beef) and a comparative advantage in (footweat, neither product, both products, beef).

The table suggests that wages in Italy are (the sameas, higher than, lower than) in Romania.

As a result of Romania’s joining the EU, employment in Romania is likely to fall in (the footwear industry, neither industry, both industries, the beef industry) .

True or False: The degree of openness of the Romanian economy will not influence the mix of jobs.

a)True

b)False

the footwear industry
The table suggests that Italy has an absolute advantage over Romania in
hparative advantage in
neither industry
both industries
The table suggests that wages in Italy are
in Romania.
the beef industry
As a result of Romania's joining the EU, employment in Romania is likely to fall in
True or False: The degree of openness of the Romanian economy will not influence the mix of jobs.
True
False

8. Comparative advantage and import competition
Romania recently joined the European Union (EU) and faces intense import competition from other EU members, such as Italy. Suppose you have the
following data on labor productivity for footwear and beef production in Romania and Italy. Assume that footwear and beef production are measured in
constant dollars reflecting the value of the products.
Use the Ricardian model to analyze possible effects on each country's footwear and beef industries when answering the questions that follow.
Sales per Employee
Footwear
Вeef
Country (Dollars per year) (Dollars per year)
Romania
50,000
40,000
Italy
84,000
42,000
The table suggests that Italy has an absolute advantage over Romania in
and a comparative advantage in
footwear
The table suggests that wages in Italy are
in Romania. neither product
both products
As a result of Romania's joining the EU, employment in Romania is likely
beef
True or False: The degree of openness of the Romanian economy will not mmuence ne mix of jobs.
O True
O False

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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