Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 9WNG
To determine
Explain who has the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Q)Suppose that country A using one unit of labor can produce 80 pounds of apples or 20 pounds of oranges, while country B using the same unit of labor can produce 40 pounds of apples or 15 pounds of oranges. This shows that:
Group of answer choices
If A and B trade, A should specialize in the production of oranges.
B has an absolute advantage in the production of apples.
B has a comparative advantage in the production of apples.
B has a comparative advantage in the production of oranges.
The table below shows the maximum quantities of two goods that each country can produce. If the countries follow the principle of comparative advantage, which of the following is a potential benefit of trade?
Vibranium (tons)
Gold (tons)
Wakanda
8 tons
2 tons
Zamunda
2 tons
1 ton
Group of answer choices
Trade can allow each country to increase consumption beyond its production possibilities frontier.
Trade can allow each country to shift its production possibilities frontier outward to higher levels of production.
Trade can allow each country to become less vulnerable to the actions of the other country.
All of these answers are correct.
True or False. Both Countries would be better off if they produced the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars.
Chapter 2 Solutions
Microeconomics
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QP
Ch. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNGCh. 2 - Prob. 10WNGCh. 2 - Prob. 11WNGCh. 2 - Prob. 12WNG
Knowledge Booster
Similar questions
An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country ?
arrow_forward
Your roommate is a better cook than you are, but you can clean more quickly than your roommate can. If your roommate did all of the cooking and you did all of the cleaning, would your chores take you more or less time than if you divided each task evenly? Give a similar example of how specialization and trade can make two countries both better off.
arrow_forward
The principle of comparative advantage suggests that, if New York and Florida exchange taxi parts for oranges, each state will be made worse off.
arrow_forward
When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods.
arrow_forward
Use comparative advantage, two countries and two goods, to explain why every country can be better off from international trade.
arrow_forward
Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible?
Kelly has a comparative advantage in repairing cars and David has a comparative advantage in cooking meals.
Kelly has an absolute advantage in repairing cars and David has an absolute advantage in cooking meals.
Kelly has a comparative advantage in repairing cars and in cooking meals.
David has an absolute advantage in repairing cars and in cooking meals.
arrow_forward
In the no specialization-no trade case, country X produces and consumes 60 units of good A and 10 units of good B. Country Y produces and consumes 20 units of good A and 20 units of good B. If the two countries specialize and trade, how many more units of good B will country X consume?
arrow_forward
Between two, the producer that requires a smaller quantity of inputs to produce a good
Has an absolute advantage in the production of that good
Must produce and not trade at all
Has a comparative advantage in the production of that good
Should not produce that good
Should import that good
arrow_forward
According to the news wire what is the opportunity cost of a single missile test in terms of corn for each of north koreas 26 million people
arrow_forward
The opportunity cost of moving from point E to point B in the above picture is
arrow_forward
Comment on the following statement: “An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially)beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole, the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country). ”
arrow_forward
If a country produces only two goods, then it is not possible to have a comparative advantage in the production of both those goods.
True
False
arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning