QUESTION 17 Cashews (pounds) 150 Pakistan 240 Cotton (bolts) Cashews (pounds) 120 Indonesia Refer to Figure 2-7. Which country has a comparative advantage in the production of cashews? ONeither country OPakistan OThey have equal productive capabilities. OIndonesia 320 Cotton (bolts)

QUESTION 17 Cashews (pounds) 150 Pakistan 240 Cotton (bolts) Cashews (pounds) 120 Indonesia Refer to Figure 2-7. Which country has a comparative advantage in the production of cashews? ONeither country OPakistan OThey have equal productive capabilities. OIndonesia 320 Cotton (bolts)

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 1SCQ: True or False: The source of comparative advantage must be natural elements like climate and mineral...

See similar textbooks

Related questions

Q: The following graph gives the labor market for the fast-food industry of the imaginary city of…

A: Equilibrium is where demand curve intersects supply curve. There will be upward pressure if the…

Q: For each of the following fiscal policy proposals, determine whether the primary focus is on…

A: Let us examine each fiscal policy proposal individually to establish if it is primarily concerned…

Q: Assume that one week sneakers sold at $150.00 and sell 80 units., next week they price them at $140…

A: Demand:Demand is the desire of an individual ability and willingness to pay for a product. The…

Q: Patrick has the following labour supply curve: WAGE RATE (Dollars per hour) W3 W2 W1 Labour Supply…

A: Income effect refers to the change in demand for a good or service caused by a change in the…

Q: a) an increase in supply. b) a decrease in quantity supplied. c) a decrease in supply.…

A: Price has a direct relationship with quantity supplied.

Q: d) From the graph above, calculate the MPS for the saving function.

A: MPS, which stands for Marginal Propensity to Save, is an economic principle denoting the fraction of…

Q: Which of the following statements is TRUE based on the Production Possibility Frontier below? Check…

A: The Production Possibility Frontier (PPF), also known as the production possibilities curve (PPC),…

Q: Suppose the two price and quantity combinations (Q=31, P = 25) and (Q = 294, P = 3) lie on the…

A: To calculate the market demand curve equation P=a−bQ, utilize the two specified points on the demand…

Q: Suppose that Kate and Pete can make Shirts and Hats. Kate is more skillful in making Shirts than…

A: The objective of this question is to calculate the opportunity cost of one Hat in terms of Shirts…

Q: Consider a satellite internet provider which is the only firm servicing potential customers in…

A: Second-degree price discrimination is a pricing strategy where a seller charges different prices…

Q: Suppose the demand curve for a product is given by Q=14-1P+2Ps where P is the price of the product…

A: The changes of customers' demand to change in the prices of the substitute or another related good…

Q: Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E):…

A: The externalities are the cost forced on the 3rd person by the action of another. This can be the…

Q: Few industries have been harder hit by rising imports – and have made greater demands at the…

A: The given information looks at the difficulties the American steel sector faced when tariffs were…

Q: The accompanying graph shows curve XX' and tangents at points A, B, and C. Calculate the slope of…

A: A curve's slope is determined by measuring the difference between two locations on the curve between…

Q: Use supply and demand curves to show and explain how both the equilibrium price and quantity change…

A: The objective of the question is to understand the impact of changes in consumer behavior and…

Q: The neutrality of money revisited a. Fill in the empty spaces after Year 1 in the chart below: b.…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: What do the distinctions between short-run aggregate supply and long-run aggregate supply have in…

A: Aggregate supply refers to the total output that the producer is ready and willing to sell at a…

Q: a. Show how the firm will respond to a negative demand shock if prices are flexible. Instructions:…

A: A demand shock is an abrupt, unforeseen incident that, generally momentarily, causes the demand for…

Q: Calculate the chain-weighted Real GDP for Year 3, using Year 1 as the base year. Here are all the…

A: Chain-weighted method of GDP is a new approach to calculating GDP. It depicts a more accurate…

Q: Calculate the annual opportunity cost of attending college based on the following expenses: The…

A: Opportunity cost is defined as the foregone potential benefits when choosing one alternative over…

Q: A town is considering adding on to the concession stand at the public ball park. They have narrowed…

A: The cost and benefit data for the three options is shown below:YearOption AOption BOption…

Q: Suppose that your firm’s production function has constant returns to scale. What is the expansion…

A: Business economics requires making decisions and allocating resources in complex market scenarios.…

Q: has an absolute advantage in the production of maize, and Loc's opportunity cost of producing 1…

A: The following graph depicts Loc's Production Possibilities Frontier (PPF). This curve depicts the…

Q: 0, L} and {M, C, R} is the on his is an exam Categies that i=

A: As per given information:-For Player 1:-When Player 2 chooses Bananas, Player 1 will choose Grapes(…

Q: Scarcity and choice

A: Scarcity is a fundamental financial idea that arises from the disparity between unlimited human…

Q: Suppose the country of Movietopia's consumers have the following consumption bundles (baskets) over…

A: Consumer price index:CPI refers to the alternate price based on the basket of goods and services.…

Q: Duane Johnson, a resident of Wisconsin, owns a warehouse in Boston. A dispute arises over the…

A: Legal terminology for jurisdiction is the authority of a courtroom or different criminal frame to…

Q: The supply of cars is given by the following relationship: q= 6+10p, where q indicates quantity and…

A: The equation of the supply curve of cars: q=6+10pHere q denotes the quantity of cars and p denotes…

Q: Today the strongest segment of unionization is: Militant workers Public…

A: The objective of the question is to identify the segment of workers that has the highest level of…

Q: Labor Force of an Economy Labor Force Number of People (millions) Employed 194.1 Structurally…

A: The unemployment rate is a key economic indicator that measures the proportion of the labor force…

Q: Criticize the classical theory that higher government spending will necessarily crowd out private…

A: The concept of crowding out refers to a situation in economics where increased government spending…

Q: s paid a salary of $480 a week at her job. She worked 9 hr of overtime during the holidays, and her…

A: Labor economics is a department of economics that researches the functioning and dynamics of the…

Q: The financial account records international transactions involving: high-value items, such as luxury…

A: The concept of BOP is explained as a record of all transactions related to the economic field made…

Q: Suppose you have two types of beverages: a cola and a beer. Are these products in the same market?

A: ***Since the student has posted multiple questions, the expert is required to solve only the first…

Q: * 1960 300 280 260 240 220 SETTINGS 200 180 160 140 120 100 80 60 40 20 Price Then ($) 1960 Price…

A: Consumer price index change in average price over time. The value of fixed amount of goods measured…

Q: The figure shows the flows of expenditure and income in an economy. In 2013, U was $2.0 trillion, V…

A: The circular flow of income and expenditure signifies the model of an economy in which the income…

Q: Suppose there are two agents Ahmet and Berk in an economy, and both consume two goods X and Y. Also…

A: A want satisfying power of a commodity or service is known as its utility. Utility is a significant…

Q: . Consider an economy with the following features. • There are 100 identical consumers that derive…

A: Firms that operate in markets with many buyers and sellers, offering homogeneous products, with free…

Q: (Figure: Understanding Price Ceilings and Floors) In the market depicted in the graph, if the…

A: This can be defined as a concept that shows the interference of the government in the market, In…

Q: 4. Effects of a tariff on international trade The following graph shows the domestic supply of and…

A: A tariff is a tax or duty imposed by a government on imported or exported goods. Tariffs are…

Q: Which of the following statements is most accurate? Unionization almost always results…

A: The objective of the question is to identify the most accurate statement about the impact of…

Q: The "marginal propensity to consume" refers to the additional Question 6 options: desired…

A: The propensity to consume creates a relationship between aggregate consumption and current…

Q: The demand for organic carrot is given by the following equation Q0 = 75-5P + Pc + 21 where Po is…

A: The objective of the question is to understand the demand function of organic carrots and how it is…

Q: If the GDP deflator in 2020 equals 2 and nominal GDP in 2020 equals $20 trillion, what is the value…

A: The GDP deflator is a measure that reflects the average price change of all goods and services…

Q: Inflation-indexed bonds Some bonds issued by the U.S. Treasury make payments indexed to inflation.…

A: Corporate debt issued by firms and securitized as tradable assets is known as bonds. Because bonds…

Q: The economy of a small island nation is based on two sectors, coal and steel. Production of a…

A: Production cost in economics refers to the expenses incurred by a firm in creating a good or…

Q: Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war.…

A: Net Present Value (NPV) is used to evaluate the profitability and value of an investment or project.…

Q: Using any model you wish, explain what might be the consequences for the circular flow of income of:…

A: The circular flow of income is a model that illustrates the flow of goods, services, and income…

Q: Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP…

A: Aggregate demand is the finished goods and services total demand that is produced in the economy. It…

Q: Your firm has a monopoly over of two products, Good 1 and Good 2. Both products are produced at a…

A: Pricing strategies are a part of business strategies. These are basically some principles a company…

Question

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: Choose the correct option.

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

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

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?
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
How does comparative advantage lead to gains from trade?
Under what conditions does comparative advantage lead to gains from trade?
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.
Estonia Finland One Cell Phone 40 hours 15 hours Lumber (per board foot) 8 hours 4 hours Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland. Refer to Table 2-5. Does either Estonia or Finland have a comparative advantage and if so, in what product? O Both countries have the comparative advantage in both lumber and cellphones. O Estonia has an comparative advantage in lumber while Finland has the comparative advantage in cellphones. O Finland has an comparative advantage in lumber while Estonia has the comparative advantage in cellphones. O cannot be determined.
LENTILS (Millions of pounds) 80 70 8 60 50 40 30 20 10 + 0 0 PPF 10 Shenandoah 20 30 40 50 60 PEAS (Millions of pounds) 70 80 (?) LENTILS (Millions of pounds) 80 70 60 50 40 30 PPF 20 10 0 0 T 10 Denali 40 20 30 50 60 PEAS (Millions of pounds) 70 80 (?) Shenandoah has a comparative advantage in the production of , while Denali has a comparative advantage in the production of . Suppose that Shenandoah and Denali specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of peas. million pounds of lentils and million pounds of Suppose that Shenandoah and Denali agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 20 million pounds of peas for 20 million pounds of lentils. This ratio of goods is known as the price of trade between Shenandoah and Denali. The following graph shows the same PPF for Shenandoah…
BASIL (Millions of pounds) 96 84 72 60 48 36 24 12 0 0 PPF I I Glacier 36 A 12 24 48 60 72 ALMONDS (Millions of pounds) 84 96 (?) Glacier has a comparative advantage in the production of production of BASIL (Millions of pounds) 96 84 72 60 48 36 24 12 0 0 PPF 1 12 Rainier basil comparative advantage. After specialization, the two countries can produce a total of of basil. A 24 ALMONDS (Millions of pounds) 36 48 60 72 84 96 almonds while Rainier has a comparative advantage in the . Suppose that Glacier and Rainier specialize in the production of the goods in which each has a million pounds of almonds and million pounds I
With reference to Table 2 below, indicate in what commodity the U.S. and the Philippines have a comparative advantage? Table 2 COMMODITY U.S. Philippines Wheat (bushels/man-hour) 7 1 Rice (sacks/man-hour) 4 3
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?
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 producingautos?WhatistheopportunitycostofproducingonepoundofbeefinBrazil?Whatistheopportunitycost of producing one pound of beef in the United States?
The table below gives the number of cars, or of coal tons, that a typical worker in the given country can produce per week. (a) Which country, if either, has an absolute advantage? (b) What is the comparative advantage, if one exists, for each country? (c) Calculate potential gains from trade, if any exist. (d) What lesson do you draw this example about the gains from trade? Country Cars Coal tons Kazakhstan 6 6 Russia 3 3