b. What is the total gain in apparel and chemical output that would result from such specialization?Apparel:Chemicals:unitston(s)c. What are the limits of the terms of trade?units of apparel for 1 ton of chemicals andunits of apparel for 2 tons of chemicals.Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 4,000 units of apparel areexchanged for 6 tons of chemicals. What are the gains from specialization and trade for each nation?(Click to select) ✓has a gain ofunits of apparel.(Click to select)✓has a gain ofton(s) of chemicals. The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization andtrade the optimal product mix for China is alternative D and for the United States is alternative S.ProductApparelChemicals (tons)ProductApparelChemicals (tons)(Click to select) ✓China Production PossibilitiesA10,0000unitsB8,00046,0008U.S. Production PossibilitiesRS30,000 24,00006T18,00012ton(s)D4,00012U12,000018E2,00016V6,00024Instructions: Enter your answers as whole numbers.a. Are comparative-cost conditions such that the two countries should specialize?F020W030If so, what product should each produce?China should produce (Click to select)The United States should produce (Click to select) ✓b. What is the total gain in apparel and chemical output that would result from such specialization?Apparel:Chemicals:

Opportunity costs address the potential advantages that an individual, investor, or business passes…

. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: Chemicals: units c. What are the limits of the terms of trade? (Click to select) ton(s) units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals. Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 4,000 units of apparel a exchanged for 6 tons of chemicals. What are the gains from specialization and trade for each nation? has a gain of units of apparel. ✓has a gain of ton(s) of chemicals. (Click to select)

. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: Chemicals: units c. What are the limits of the terms of trade? (Click to select) ton(s) units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals. Suppose that the actual terms of trade are 1,000 units of apparel for 1½ tons of chemicals and that 4,000 units of apparel a exchanged for 6 tons of chemicals. What are the gains from specialization and trade for each nation? has a gain of units of apparel. ✓has a gain of ton(s) of chemicals. (Click to select)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 31P: Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil...

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Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
China Production Possibilities Product A B C D E F Apparel 20,000 16,000 12,000 8,000 4,000 0 Chemicals(tons) 0 8 16 24 32 40 U.S. Production Possibilities Product R S T U V W Apparel 60,000 48,000 36,000 24,0000 12,000 0 Chemicals(tons) 0 12 24 36 48 60
Productivity Table Soup per unit of labor Swords per unit of labor Wesley 30 25 Fezzik 10 30 If each person specialized according to comparative advantage and later decides to move 4 units of labor to comparative disadvantage, what would be the result? Total soup production increases by 160, total sword production increases by 220 Total soup production decreases by 80, sword production increases by 220. Total soup production decreases by 20, total sword production increases by 160 Total soup production increases by 80, total sword production decreases by 220
Steel 50 25 0 25 50 Chemicals Italy 1 ton of steel for 1/2 ton of chemicals. 1 ton of steel for 1/3 ton of chemicals. 1 ton of steel for 1 ton of chemicals Steel 1 ton of steel for 2 tons of chemicals. 30 20 0 20 Italy and Greece are the only two economies in the world and they can produce steel or chemicals. The production possibilities curves for the two countries are shown in the graphs. What is the cost ratio for Greece? Chemicals Greece 60
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities Product D E F A B 20,000 16,000 0 8 с 12,000 16 Apparel Chemicals (tons) 4,000 0 8,000 24 32 40 U.S. Production Possibilities Product S T U V W Apparel R 60,000 48,000 0 12 36,000 24,0000 12,000 0 Chemicals (tons) 24 36 48 60 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) If so, what product should each produce? China should produce [(Click to select) The United States should produce [(Click to select) b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and…
1. The countries France and Italy produce Perfumes and Leather Coats using only labor as an input. AvailableLabor for France and Italy is 3000 and 1000 respectively. Unit of labor per Leather Coat in France is 6 units and inItaly are 2 units. France needs 2 units of labors to produce 1 bottle of Perfume and Italy needs 4 unit of labor. a) Draw the Production Possibility Curve by using relevant information. b) Which country has the comparative advantage in producing Perfume?
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities Product A в D E F Apparel Chemicals (tons) |20,000 16,000 12,000 8,000 4,000 8 16 24 32 40 U.S. Production Possibilities Product R S T U V W Apparel Chemicals(tons) 60,000 48,000 36,000 24,0000 12,000 12 24 36 48 60 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) V If so, what product should each produce? China should produce (Click to select) ♥ The United States should produce (Click to select) V b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: |ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units…
The accompanying hypothetical production possibilities tables are for New Zealand and Spain. Each country can produce apples and plums. New Zealand's Production Possibilities Table (Millions of Bushels) Spain's Production Possibilities Table (Millions of Bushels) Production Alternatives Production Alternatives Product A B D Product R T Apples 20 40 60 Apples 20 40 60 Plums 15 10 5 Plums 60 40 20 a. Plot the production possibilities data for each of the two countries separately. Show the trading possibilities lines for each nation if the actual terms of trade are 1 plum for 2 apples. Instructions: (1) Use the tools provided, 'PPC NZ' and 'PPC SP' (plot 4 points each) to draw the PPC curves. (2) Use the tool provided, 'ToT,' in each diagram (plot 4 points each) to draw the trading possibilities lines for each nation. To earn full credit, you must correctly plot all points for each line. New Zealand Customize and control Google Chrome Spain 80 Tools 140 Tools 120 60 PPC NZ Тот PPC sP ToT…
scenario Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.
France and Poland each have one worker whosemonthly linear Production PossibilityFrontier indicatesthe following production possibilities: PolandFranceComputers (C) 246Grain (G) 43 a)Franceâ€™sopportunity cost of G in terms of units of C equals ______ ? b) Polandâ€™sopportunity cost of G in terms of units of C equals ______ ?For the followingparts, please complete the questions by filling in the blank, and responding toremainderof the question: c) Polandâ€™scomparative advantage is in ______ because: d) If France and Poland decide to trade, _________ will be theexporter of G while ______ will bethe importer because: e) If the economies choose to trade, the world relative priceof goods must be ________ in orderfor trade to be mutually beneficial, because:
France and Poland each have one worker whosemonthly linear Production PossibilityFrontier indicatesthe following production possibilities: PolandFranceComputers (C) 246Grain (G) 43 a) Franceâ€™sopportunity cost of G in terms of units of C equals ______ ? b) Polandâ€™sopportunity cost of G in terms of units of C equals ______ ?For the followingparts, please complete the questions by filling in the blank, and responding toremainderof the question: c) Polandâ€™scomparative advantage is in ______ because: d) If France and Poland decide to trade, _________ will be theexporter of G while ______ will bethe importer because: e) If the economies choose to trade, the world relative priceof goods must be ________ in orderfor trade to be mutually beneficial, because: 4.In the following problem, assume that the UK currency is the pound sterling (PST)and thecurrency in the restof the Europe is the euro (EUR). Suppose that thePST appreciates relative to the EUR. For the following parts, you will…
Suppose there are two countries Peru and Japan that produces 7,523 units ofFood or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5,000. d) Which country has the comparative advantage in food? In fuel? Explain. e) Which good(s) should each country specialized in?