5. Look at the following table, which gives the unit labour requirement in an imaginarytwo-good, two-country worldCarsAircraUSA1250360In this scenario, Germany has a comparative advantage in car production

When two nations are compared and one of the nations has a lower OC in producing a service or…

Answered: 5 Looking table, which gives the unit…

Business

Economics

5 Looking table, which gives the unit labour requirement USA Germany Amrah 12 50

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 23CTQ: Does intra-industry trade contradict the theory of comparative advantage?

See similar textbooks

Related questions

Q: The following graph illustrates a labour market. If the market wage rate is currently $5 per hour,…

A: The labor market refers to the marketplace where individuals supply their labor and employers demand…

Q: Name two key differences between “core” and “value added” real estate investment strategies

A: Core and value-added real estate investment strategies are similar to the general investment…

Q: Suppose that the bank holds $15m of treasury bonds, $10m of reserves, $30m of checkable deposits,…

A: A commercial bank's operations can be monitored through its balance sheet. It has two sides-Assets-…

Q: 1. One of the greatest effects of this new trend toward international production is that firms can…

A: In this discussion, we explore how global value chains can cause the reported US trade deficit with…

Q: Question 15 The property tax is very popular because it is fairly assigned. it is administered…

A: Property tax is a tax which is charged in property that the proprietor is expected to pay. The tax…

Q: The production function of a country is Y=K^(1/2)L^(1/2). If economy starts with 10 units of capital…

A: In a market system, the production function presents the causal connection between inputs (which…

Q: When an MNC restructures its operations to reduce its economic exposure, it may sometimes forgo…

A: Economic exposure refers to the susceptibility of a company's cash flows, revenues, and costs to…

Q: Which is not one of the five major functions of theory? Used for research inquiry Help…

A: The question you asked inquired about the functions of theory and identified four options, asking…

Q: "Your Engine or Mine" is a local manufacturer of four-stroke single-cylinder engines in College…

Q: Ci and Yi are consumption and income at period i (i=1, 2). When the world interest rate is r…

A: Utility, in economics, refers to the satisfaction or happiness derived by an individual from…

Q: If people took external benefits, such as cleaner air, into consideration when deciding how much to…

A: The theory of externalities in economics has been credited to Arthur Pigou, an English economist. In…

Q: You are considering two options for your next family vacation. You can visit Disney World or…

A: Here we are given consumer's utility under the uncertain situations. Here consumer will make his…

Q: You are considering a $500,000 investment in the fast-food industry and have narrowed your choice to…

A: Investment alludes to the allocation of money, resources, or capital with the expectation of…

Q: How do you explain the competitive advantage of Publix?

A: Publix, a regional supermarket chain in the southeastern united states, has built a sturdy…

Q: the price of ground beef decreases, which of the following will occur? The demand curve for ground…

A: The equilibrium occurs where the demand and supply are equal. The firm follows the price…

Q: 11) Figure below depicts a firm's marginal revenue product curve. If the firm maximizes its profit…

A: Marginal Product is the change in total product due to an additional labor hired. Marginal revenue…

Q: Planes frequently push back from the gate on time, but then wait 2 feet away from the gate until it…

A: Here, we delve into the pay schedule for the flight crew and examine the incentives of different…

Q: Jim Bob holds an engineering degree and is currently employed in an aerospace company in Dallas. Jim…

A: Interest payment refers to the return a person receives on their savings in their respective bank…

Q: How do the presence and operation of multinational or transnational corporations facilitate the…

A: TNC. Refers to a large business or entity that operates in various countries, But the headquarters…

Q: b. The graph shows that if good Y is inferior, good X must be normal. must also be inferior. must be…

A: In the field of economics, an inferior good refers to a product that experiences a decline in demand…

Q: Which of the following would be a part of an organization's specific environment?

A: An organization’s specific environment refers to the forces that directly affect an organization’s…

Q: How do you analyze how Publix oligopolies position themselves to be successful?

A: Analyzing how public oligopolies position themselves for success involves assessing various factors…

Q: If the price elasticity of demand for a product is -2, this means that, ceteris paribus, quantity…

A: Although Marshall has been associated with popularising and formally establishing the concept of…

Q: suppose the economy is characterized by the following behavioral equations: C=160+0.6YD, I=150,…

A: The expression "economy" alludes to the arrangement of creation, conveyance, and utilization of…

Q: Review Porter’s Theory of Competitive Advantage and assess the extent to which the model can be used…

A: Porter's Theory of Competitive Advantage provides a framework for understanding the factors that…

Q: (a) Explain the slopes of the long-run supply curves in each industry. (b) If Australia and Korea…

A: (a) Explain the slopes of the long-run supply curves in each industry.(b) If Australia and Korea had…

Q: The following market is a duopoly populated only by the companies Alpha and Beta. The pay-off matrix…

A: Oligopoly is a form of market where there is only a limited number of firms or suppliers who have a…

Q: An investor considers investing $17,000 in the stock market. He believes that the probability is…

A: Probability tells us the approximate chance of things taking place. It basically briefs us about the…

Q: The graph shows the market for education in a developing country. In this country all schools are…

A: The Externalities are side effects of economic activities that are not accounted for by the market…

Q: If the price of a good decreases from $6.50 to $5.75 and, as a result, the quantity demanded…

A: Elasticity, in the context of economics, refers to the responsiveness or sensitivity of one variable…

Q: Suppose that the labor force in 2008 was 154.3 million and unemployment was 8.9 million. What was…

A: Labor force is the sum of employed and unemployed people. Unemployed people is the people who are…

Q: What is the deadweight loss resulting from this tax?

A: Dead-weight is an allocative inefficiency, which leads to a loss of social economic welfare of the…

Q: Use the table to answer three questions. Budget Total (in Billions of Dollars) Revenues 2006 2007…

A: Tax revenue refers to the total amount of money collected by the government through various taxes.…

Q: Based on Figure 3, choose the right statement. 1) Growth in output is protrade because the cloth…

A: Protrade output growth refers to an increase in the production or output of goods and services that…

Q: Which of the following is included in Investment (I)? the amount spent on new factories…

A: Investment, with regards to economics refers to the expenditure or allotment of assets for the…

Q: What polices would lead to unintended consequences like black markets? Explain Explain in detail.

A: The black market refers to an illegal or informal economic framework where goods, services, or…

Q: Suppose that the bank holds $15m of treasury bonds, $10m of reserves, $30m of checkable deposits,…

A: Banks generate income through the interest they receive on the loans they provide to borrowers.…

Q: What monetary incentives do mobile network operators have to make long-term investments in their…

A: Long term investments in network infrastructures for the the mobile network operators could include…

Q: if the reverse requirements is 8% and a banker's new deposit are$50.what is the M1 money supply

A: Money supply alludes to the aggregate sum of money coursing inside an economy at a given moment. It…

Q: answer with explanation and conclusion The burden of a sales tax will fall primarily on businesses…

A: Sales tax is a type of consumption tax imposed by governments on the sale of goods and services. It…

Q: An equation of the form y=1 = 7000 (1.09)* provides an example of interest compounded annually. This…

A: Growth rate is the addend by which a quantity increases (or decreases) over time. For example,…

Q: Graph the supply and demand curves from the table. P ($) QD Qs 6.00 130 | 100 6.50 120 120 7.00 110…

A: The demand function reflects an individual’s willingness to pay for each unit of the quantity he or…

Q: The below graph represents a monopoly market, the revenue maximizing price is $ $ 10 9 8 7 6 S 4 3 2…

A: Monopoly : A company becomes a monopoly when it is the only seller of its product and there are no…

Q: After reading and watching videos on monopolistically competitive markets, write a 2-3 page paper…

A: Introduction:This paper examines Apple Inc., a prominent firm operating within a monopolistic…

Q: Consider the following model to maximize profit: Max 4x+2y S.T.: 2x+3y>=6 x=0 The orange dash line…

A: Since x,y>=0, we have to take critical points of first quadrant only

Q: Information asymmetries The following diagram relates to a market with an information asymmetry. The…

A: Asymmetric information, also known as information asymmetry, refers to a situation in which one…

Q: Question With a economic expansion from D0 to D1 seen on the figure below, what will be the new wage…

A: A labor market is the dynamic exchange of labor between employers and employees. Employers seek…

Q: How does deposit insurance encourage banks to take on too much risk? 1. Banks can make riskier…

A: Deposit insurance is directly supervised by the national govt under the jurisdiction of the CB. It…

Q: How is peak-load pricing a form of price discrimination? Can it make consumers better off? Give an…

A: Monopolistic competition is one of the various types that a market possesses. Under this structure,…

Q: Factors that shift the IS curve involve: A) interest rates and levels of GDP. B) the…

A: ***Since you have posted multiple independent McQs in the same question, according to our…

Question

5. Look at the following table, which gives the unit labour requirement in an imaginary
two-good, two-country world
Cars
Aircra
USA
12
50
3
60
In this scenario, Germany has a comparative advantage in car production

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Comparative advantage

VIEW

Step 2: Calculate the OC to find the comparative advantage

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
Does intra-industry trade contradict the theory of comparative advantage?
How does comparative advantage lead to gains from trade?
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
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.
Under what conditions does comparative advantage lead to gains from trade?