5 Below are the data for the maximum production of the only two products for the countries of Oz and Zas.Oz: 36 food units or 18 equipment unitsZas: 18 food units or 26 equipment unitsa. If each country is self-sufficient, with no trade between them, and each uses one-half of its resources to produce each of the twoproducts, what is the output in each country. Fill in the table below.CountryOzZasCountryOzOutput of foodunitsb. Based on part (a), total production of food isunits and total production of equipment isc. If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country?Fill in the table below.ZasOutput of equipmentunitsOutput of foodunitsOutput of equipmentunitsd. Now, based on part (c), total production of food ise. The gains as a result of specialization areunits and total production of equipment ismore units of food produced and< PrevSearch5 of 5SAMSUNGNextunits.units.more units of equipment produced.

Below are the data for the maximum production of the only two products for the countries of Oz and Zas. Oz: 36 food units or 18 equipment units Zas: 18 food units or 26 equipment units a. If each country is self-sufficient, with no trade between them, and each uses one-half of its resources to produce each of the two products, what is the output in each country. Fill in the table below. Country Oz Zas Country Oz Output of food units b. Based on part (a), total production of food is units and total production of equipment is [ units. c. If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country? Fill in the table below. Zas Output of equipment units Output of food units Output of equipment units d. Now, based on part (c), total production of food is e. The gains as a result of specialization are units and total production of equipment is more units of food produced and < Prev 5 of 5 Next units. more units of equipment produced.

Below are the data for the maximum production of the only two products for the countries of Oz and Zas. Oz: 36 food units or 18 equipment units Zas: 18 food units or 26 equipment units a. If each country is self-sufficient, with no trade between them, and each uses one-half of its resources to produce each of the two products, what is the output in each country. Fill in the table below. Country Oz Zas Country Oz Output of food units b. Based on part (a), total production of food is units and total production of equipment is [ units. c. If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country? Fill in the table below. Zas Output of equipment units Output of food units Output of equipment units d. Now, based on part (c), total production of food is e. The gains as a result of specialization are units and total production of equipment is more units of food produced and < Prev 5 of 5 Next units. more units of equipment produced.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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The following production possibilities schedule shows the quantities of buckwheat and corn that can be produced in the United States and Canada with one unit of equivalent resources. Buckwheat Corn (bushels) (bushels) United States 64 14 Canada 24 For both countries to be able to gain from trade, Canada would not gain by producing and exporting corn and importing buckwheat unless it received O A. any quantity of buckwheat. O B. more than 4 bushels of buckwheat per bushel of corn. OC. more than 6 bushels of corn. O D. more than 4.57 bushels of buckwheat per bushel of con.
Dols 5. Trading under increasing opportunity costs The following graph shows the production possibilities frontier for the imaginary country of Contente under conditions of increasing costs. In the absence of trade, the relative cost of wheat in Contente in terms of computers (or the marginal rate of transformation (MRT) of wheat into computers) is shown by the slope of line fi, tangent to the production possibilities frontier at point A. WHEAT (Bushels 3001 210 240 310 180 150 120 00 60 R 0:0 20 2 4 12 14 4 10 COMPUTERS 10 16 20 Consumption After Trade Which of the following most accurately describes Contente's economy in the absence of trade? Contente produces 6 computers and 234 bushels of wheat. O contente araduces and consumes 6 computers and 100 bushels of wheat.
The table below shows the monetary value of the production of gems and steel respectively in the calendar year of 2019 for the nations of Turkey and Zimbabwe. Use It to answer questions regarding a possible trade scenarlo between the two nations. Year- 2019 Gems in billions of USD Steel in billions of USD 0.2 Zimbabwe 10 Turkey Which of the nations has a comparative advantage in the production of steel? O a Zimbabwe O b Nelther Turkey
. An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes. Assume that the two countries trade and that the country importing coffee trades 2 ounces of soybeans for 1 ounce of coffee. Explain why both countries will benefit from this trade.
Two countries (A and B) produce tea and oranges using labor. The number of hours of labor required to produce these goods are given as follows: Country Тea Oranges A 6 20 В 8 30 If both countries have 1500 hours of labor available, explain how they can gain from trade.
Time it takes to produce one car | Time (hours) it takes to produce one Laptop (hours) Canada 2,000 4 China 3,200 8 Which good will China export and which good will Canada export? O Canada will export cars and China will export laptops. O Canada will export laptops and China will export cars. O China will export laptops and cars. Canada will export neither goods. O Canada will export laptops and cars. China will export neither goods.
For this question, only consider Korea and the United States. If the United States is better at producing agricultural goods and technological goods, then_ It would be impossible for the United States to benefit from trade with Korea since the United States have an absolute advantage in the production of both good A. B. It would be impossible for the United States to have an absolute advantage over another country in the production of both products. C. The United States should specialize in the production of technological goods if Korea has a comparative advantage in the production of agricultural goods. The United States should specialize in the product in which it has an absolute advantage. O D.
5. Trading under increasing opportunity costs The following graph shows the production possibilities frontier for the imaginary country of Contente under conditions of increasing costs. In the absence of trade, the relative cost of wheat in Contente in terms of tablets (or the marginal rate of transformation (MRT) of wheat into tablets) is shown by the slope of line , tangent to the production possibilities frontier at point A. WHEAT (Bushels) 250 200 175 150 125 100 S 25 0 10 15 20 25 30 TABLETS 35 40 45 10 .. Consumption After Trade (?)
Suppose in a given year, France can produce 100 tons of cheese or 500 oranges. Spain can produce 150 tons of cheese or 1000 oranges. Assume that both countries have the same amount of workers and that trade is allowed between the two countries. Which of the following is true? . O Spain should import both oranges and cheese from France. O France should import cheese from Spain and Spain should import oranges from France. O France should import oranges from Spain and Spain should import cheese from France. O France should import both oranges and cheese from Spain.
Argentina can produce 150 pounds of beef or 20 cars; in contrast the United States can produce 90 pounds of beef or 80 cars. Which country has the absolute advantage in producing beef? O Both countries have an absolute advantage. O United States O Argentina O Neither country has an absolute advantage.
In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked “Trade Action,” and enter each country's final consumption of each good on the line marked “Consumption.” When the two countries did not specialize, the total production of jeans was 36 million pairs per week, and the total production of corn was 104 million bushels per week. Because of specialization, the total production of jeans has increased by ______________million pairs per week, and the total production of corn has increased by ______________million bushels per week. Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade. Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked “Increase in…
1. Use the following table to answer this question. The table contains the amount of wheat andshoes that could be produced by two nations (A and B) with a given amount of labor.Wheat ShoesNation A 100 100Nation B 400 800A. According to Adam Smith, which country should export wheat? Why? Which country shouldexport shoes? Why?B. According to David Ricardo, which country should export wheat? Why? Which countryshould export shoes? Why? 2. Economists today primarily exchange information through the per review process inpublishing and conference/workshop presentations. Briefly describe how the classicaleconomists (Smith, Malthus, Ricardo, and Mill) exchanged information with othereconomists. What were the advantages and disadvantages (compared to today) of theirmethods of exchanging information?