lass Activity 1 Product Pork Beans A 4 e Concordia: 1 unit of pork costs 1 unit of beans costs B 3 6 C 2 12 5 beans. 0.2 units of pork. Feasible terms of trade 1 unit of pork bean D a. What are the costs of the two products in each country? Round your answers below to 2 decimal places. 1 18 E Harmonia: 1 unit of pork costs 6 beans. 1 unit of beans costs 0.17 units of pork. b. Which products should each country specialize in and export? Concordia: Pork Harmonia: Beans between between 0 24 c. If, prior to specialization and trade, Concordia produced combination D and Harmonia produced combination B. what would be the total gains from trade? Pork: Beans: 0 3 d. What would be the range of feasible terms of trade between the two countries? O Search and and bean units of pork < Prev 3 of 6 Next >

lass Activity 1 Product Pork Beans A 4 e Concordia: 1 unit of pork costs 1 unit of beans costs B 3 6 C 2 12 5 beans. 0.2 units of pork. Feasible terms of trade 1 unit of pork bean D a. What are the costs of the two products in each country? Round your answers below to 2 decimal places. 1 18 E Harmonia: 1 unit of pork costs 6 beans. 1 unit of beans costs 0.17 units of pork. b. Which products should each country specialize in and export? Concordia: Pork Harmonia: Beans between between 0 24 c. If, prior to specialization and trade, Concordia produced combination D and Harmonia produced combination B. what would be the total gains from trade? Pork: Beans: 0 3 d. What would be the range of feasible terms of trade between the two countries? O Search and and bean units of pork < Prev 3 of 6 Next >

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 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...

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In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
Are the gains from international trade more likely to be relatively more important to large or small countries?
Why might intra-industry trade seem surprising from the point of view of comparative advantage?
> O ho signment - ECN204 021- Introductory Macroeconomics - W2023 apter 17 Assignment i 1 B 02:44:19 W b Success Confirmation 4+ Help
The country Autarka does not allow international trade.In Autarka, you can buy a wool suit for 3 ounces ofgold. Meanwhile, in neighboring countries, you can buythe same suit for 2 ounces of gold. This suggests thata. Autarka has a comparative advantage inproducing suits and would become a suitexporter if it opened up trade.b. Autarka has a comparative advantage inproducing suits and would become a suitimporter if it opened up trade.c. Autarka does not have a comparative advantagein producing suits and would become a suitexporter if it opened up trade.d. Autarka does not have a comparative advantagein producing suits and would become a suitimporter if it opened up trade
E4 Home’s demand curve for wheat is D = 200 − 40P Its supply curve is S = 40 + 40P Derive and graph Home’s import demand schedule. What would the price of wheat be in the absence of trade? Now add Foreign, which has a demand curve D∗ = 160 − 40P and a supply curve S ∗ = 80 + 40P 1. Derive and graph Foreignâs export supply curve and find the price of wheat that would prevail in Foreign in the absence of trade. 2. Now allow Foreign and Home to trade with each other, at zero transportation cost. Find and graph the equilibrium under free trade. What is the world price? What is the volume of trade? Home imposes a specific tariff of 0.5 on wheat imports. 1. Determine and graph the effects of the tariff on the following: (1) the price of wheat in each country; (2) the quantity of wheat supplied and demanded in each country; (3) the volume of trade. 2. Determine the effect of the tariff on the welfare of each of the following groups: (1) Home import-competing producers; (2) Home…
Question 19 Identify the following in the attached graph after the country opens to world trade and the world price is Pw2: Quantity produced domestically (numerical value) is [x3] Sdomestic A Po= 10 G MI N Pw28. K] Daomestie Q1=25 Q0 = 50 Q2=75 Question 20 Identify the following in the attached graph after the country opens to world trade and the world price is Pw2: Total cost of imports [x6]. Calculate the numerical value. Sdomestic A Po= 10 M! N Pw2=8 Deomestie Q1-25 Q0 = 50 Q2=75 Q
The following graph is the respective production possibility curves for the USA and South Korea. It shows there total output of medical devices and cars in a state of autarky (no trade), and it illustrates the gains that both countries can benefit from when they engage in trade. 10,000 10,000 8,000 tc 8,000 6,000 6,000 Consumpfion wth trode Consumplion wih trode 4,000 4,000 2,000 2,000 D. 1,000 0.5 1 3 2. 3 Automobiles (millions) Automobiles (millions) (a) USA (b) South Korea Medical Devices Automobiles (millions) USA 4,000 0.5 million South Korea 1,000 2 million Answer the following questions utilizing the textbook and your lecture videos: 1) What assumption in the production possibilities model may lead the model to overstate the gains from trade and cause the actual gains to be less than predicted by the model? 2) Who gains from trade in this scenario? Who may be hurt by trade in this scenario? 3) Do you think there is a role for the government to help those who are hurt by trade in…
1he world price of wine is below the price that wouldprevail in Canada in the absence of trade.n Assuming that Canadian imports of wine arc asmall part of total world wine production, drawa graph for the Canadian market for wine underfree trade. (dentify consumer surplus, producersurplus, and total surplus in an appropriate table.h. Now suppose that an unusual shift of the GulfStream leads to an unseasonably cold summerin Europe, destroying much of the grape harvf"st thNP. What eff,..ct dnM thi~ "hock h:tvPonthe world price of wine? Using your graph andtable from part (a), show the effect on consumersurplus, producer surplus, and total surplusin Canada. Who arc the winners and losers?l" C':ln:'lci:'l M :t whnlP hPHf"r nr wnMOf" nff?
When a country allows trade and becomes an exporter of a good, which of the following is NOT a consequence? O The gains of domestic producers of the good exceed the losses of domestic consumers of the good. O The price paid by domestic consumers of the good increases. O The price received by domestic producers of the good increases. O The losses of domestic consumers of the good exceed the gains of domestic producers of the good. 20 O w MacBook esc ODO D00 F4 F2 F3 F6 $ % 4 Q W E R Jock F # 3 A
Suppose that Congress imposes a tariff on importedautomobiles to protect the U.S. auto industry fromforeign competition. Assuming that the United Statesis a price taker in the world auto market, show thefollowing on a diagram: the change in the quantityof imports, the loss to U.S. consumers, the gainto U.S. manufacturers, government revenue, andthe deadweight loss associated with the tariff. Theloss to consumers can be decomposed into threepieces: a gain to domestic producers, revenue forthe government, and a deadweight loss. Use yourdiagram to identify these three pieces.
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. France=100 automobiles and 55 computers United States=120 automobiles and 60 computers. 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