Suppose Italian workers can produce 4 cars per year and German workers can produce 8 cars per year. Suppose Italian workers can produce 5 tons of garments per year and German workers can produce 6 tons of garments per year. Trade between Italy and Germany would lead to? a. Employment gains in Italian car manufacturing b. Exports of cars from Germany to Italy c. Lower relative price of cars in Germany d. Lower relative price of garments in Italy
Suppose Italian workers can produce 4 cars per year and German workers can produce 8 cars per year. Suppose Italian workers can produce 5 tons of garments per year and German workers can produce 6 tons of garments per year. Trade between Italy and Germany would lead to? a. Employment gains in Italian car manufacturing b. Exports of cars from Germany to Italy c. Lower relative price of cars in Germany d. Lower relative price of garments in Italy
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 2QR
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Suppose Italian workers can produce 4 cars per year and German workers can produce 8 cars per year. Suppose Italian workers can produce 5 tons of garments per year and German workers can produce 6 tons of garments per year. Trade between Italy and Germany would lead to?
a. Employment gains in Italian car manufacturing
b. Exports of cars from Germany to Italy
c. Lower relative price of cars in Germany
d. Lower relative price of garments in Italy
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