ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 19, Problem 1.3P
To determine
The consumption possibilities frontiers in case the terms of trade are altered.
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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.
7-
: 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 spending
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?
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- Background information: A worker in the United States and a worker in China can each produce 1,000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week, and a worker in China can produce 100 cell phones in a week. Answer the following questions based on this information. Part A: If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce? What would be the total number of jeans and cell phones produced by the two countries combined? (Show your work.) Part B: Calculate the opportunity cost of producing jeans for each country. (Show your work.) Part C: Calculate the opportunity cost of producing cell phones for each country. (Show your work.) Part D: Determine how many jeans should be produced by each nation. (Show your work). Part E: If each nation should specialize in producing jeans and cell phones, explain why; use economic terminology you have learned in this unit in your…arrow_forwardBackground information: A worker in the United States and a worker in China can each produce 1,000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week, and a worker in China can produce 100 cell phones in a week. Answer the following questions based on this information.Part A: If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce? What would be the total number of jeans and cell phones produced by the two countries combined? Part B: Calculate the opportunity cost of producing jeans for each country.Part C: Calculate the opportunity cost of producing cell phones for each country.Part D: Determine how many jeans should be produced by each nation.Part E: If each nation should specialize in producing jeans and cell phones, explain why; use economic terminology you have learned in this unit in your explanation.Part F: Finally, how many total jeans and cell phones will be produced by…arrow_forward9 How free trade zones or special economic zones affect exports.arrow_forward
- QUESTION 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_forwardDescription Background information: A worker in the United States and a worker in China can each produce 1,000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week, and a worker in China can produce 100 cell phones in a week. Answer the following questions based on this information. Part A: If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce? What would be the total number of jeans and cell phones produced by the two countries combined? Show your work.in detail Part B: Calculate the opportunity cost of producing jeans for each country. Show your work in detail Part C: Calculate the opportunity cost of producing cell phones for each country. Show your work in detail Part D: Determine how many jeans should be produced by each nation. Show your work in detail. Part E: If each nation should specialize in producing jeans and cell phones, explain why; use economic terminology in your…arrow_forward34. To obtain good A in which one does not have a comparative advantage, it is better to acquire it by "indirect production" – producing good B, in which one does have a comparative advantage, and trading it for good A. True False Falsearrow_forward
- 2 The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed. Why did this occur? Capital per hour worked (labor) grew rapidly from 1950 to 1980, but technological change occurred very slowly. Capital per hour worked (labor) grew slowly, but technological change grew very rapidly. Increasing implementation of new technologies eventually suffered diminishing marginal returns. The centrally planned economy invested too heavily in technological change. Consumption goods eventually took priority.arrow_forwardPrepare 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_forward7. Discuss some advantages of exporting? Question 7 options:arrow_forward
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