MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Question
Chapter 20.2, Problem 1QQ
To determine
Production possibility frontier and opportunity cost .
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Q11
International trade permits a country to...
a.
Consume beyond its production possibilities boundary.
b.
Produce and consume beyond its production possibilities boundary.
c.
Shift its production possibilities boundary outward.
d.
Increase its absolute advantage for its imported goods.
e.
Expand its production possibilities while holding constant its consumption possibilities.
Moving from one point on the production possibilities frontier to another
Select one:
a. involves a tradeoff but does not incur an opportunity cost
b. involves an opportunity cost but no tradeoff
c. involves no tradeoff but it does incur an opportunity cost
d. involves a tradeoff and incurs an opportunity cost
In the specific model with two consumption goods and labour (mobile) and land and capital (specific factors), in Home in the market equilibrium with free international trade of goods (compared to autarky).Which statements are correct?
1.the economy does not achieve a Pareto improvement.
2.the profit of the capital owners increases.
3.a good that is exported cannot have a higher price.
4.consumption is strictly higher.
5.the price for land cannot be lower.
6.workers will be better off if they consumption demand is sufficiently biased toward imported goods.
7.the real wage will be higher
Chapter 20 Solutions
MACROECONOMICS W/CONNECT
Ch. 20.2 - Prob. 1QQCh. 20.2 - Prob. 2QQCh. 20.2 - Prob. 3QQCh. 20.2 - Prob. 4QQCh. 20 - Prob. 1DQCh. 20 - Prob. 2DQCh. 20 - Prob. 3DQCh. 20 - Prob. 4DQCh. 20 - Prob. 5DQCh. 20 - Prob. 6DQ
Ch. 20 - Prob. 7DQCh. 20 - Prob. 8DQCh. 20 - Prob. 9DQCh. 20 - Prob. 10DQCh. 20 - Prob. 11DQCh. 20 - Prob. 12DQCh. 20 - Prob. 13DQCh. 20 - Prob. 14DQCh. 20 - Prob. 1RQCh. 20 - Prob. 2RQCh. 20 - Prob. 3RQCh. 20 - Prob. 4RQCh. 20 - Prob. 5RQCh. 20 - Prob. 6RQCh. 20 - Prob. 7RQCh. 20 - Prob. 8RQCh. 20 - Prob. 9RQCh. 20 - Prob. 10RQCh. 20 - Prob. 11RQCh. 20 - Prob. 12RQCh. 20 - Prob. 13RQCh. 20 - Prob. 1PCh. 20 - Prob. 2PCh. 20 - Prob. 3PCh. 20 - Prob. 4P
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