ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 17, Problem 1.3P
To determine
The shape of the
Introduction:
Terms of trade: The terms of trade are defined as the ratio of exports to its imports
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11.
Question 11 options:
----------------Measures the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production.
Question 27
. If Maxine and Daisy both specialized in the product in which they have a comparative advantage, would they benefit from trading with each other?
Group of answer choices
There is not enough information to know.
No, at least one of them would not gain, and so would not gain from trade.
Yes, they would both gain from trade.
19. _______________ topics relate to how much money the country makes in a year, how many resources a country imports and exports in a year, and the number of available jobs in the U.S. at a given time.
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- 7. Japanese labor productivity is roughly the same as that of the United States in the manufacturing sector (higher in some industries, lower in others), while the United States is still considerably more productive in the service sector. But most services are nontraded. Some analysts have argued that this poses a problem for the United States,because our comparative advantage lies in things we cannot sell on world markets.What is wrong with this argument?arrow_forward7- : What is the total expenditure made by consumers on the purchase of goods and services called? a) Net foreign trade B) Savings spending NS) Consumption expenditure D) investment expenditure TO) public spendingarrow_forwardQUESTION 49 If the opportunity cost of producing cheese is higher in Greece than it is in Italy, then: a. Greece gives up fewer goods to produce cheese than Italy does. b. both Greece and Italy should produce cheese. c. Italy has a better economy than Greece. d. Italy should specialize in producing cheese. e. Greece should specialize in producing cheese..arrow_forward
- Subject: OM | International Business and Trade Question: 3.How do you think the transition to a normal economy in Lebanon, after the war in 2006, would differ from the experiences of European countries after World War II? (Cite citations if needed)arrow_forwardQUESTION 10 Why do countries trade? International law requires them to. They have similar comparative advantages. They have identical comparative advantages. They have different comparative advantages. They have identical absolute advantages.arrow_forward9 How free trade zones or special economic zones affect exports.arrow_forward
- Prepare a chart that compares India, Spain, and South Africa based on the data you find. Describe the key differences between the countries. Rank these as high-, medium-, and low-income countries, explain what is surprising or expected about this data.arrow_forwardoblem 1 (Absolute and Comparative Advantage) (Chapter 2) You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom: Labor Hours Required to Produce One Unit The United Kingdom The United States Wheat 2 1 Cloth 6 5 What is the opportunity cost of producing a unit of wheat in the United Kingdom? In the United States? Which country has an absolute advantage in producing wheat? In producing cloth? Which country has a comparative advantage in producing wheat? In producing cloth? Which country should specialize in producing wheat? In producing cloth?arrow_forward(Absolute and Comparative Advantage) You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:Wheat Cloth Labor Hours Required to Produce One Unit The United Kingdom /The United States Wheat 2 1 Cloth 6 5 a. What is the opportunity cost of producing a unit of wheat in the United Kingdom? In the United States?b. Which country has an absolute advantage in producing wheat? In producing cloth?c. Which country has a comparative advantage in producing wheat? In producing cloth?d. Which country should specialize in producing wheat? In producing cloth?arrow_forward
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