Homework Help is Here – Start Your Trial Now!
Business
Economics
Using the same amount of resources, the United States and Canada can both produce lumberjack shirts and lumberjack boots, as shown in the production possibilities frontiers in the figure to the right. Canada has a comparative advantage in producing lumberjack boots. The United States has a comparative advantage in producing lumberjack shirts. Does either country have an absolute advantage in producing both goods? OA. Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts. B. Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts. OC. The United States has an absolute advantage in both goods because it can produce more boots and more shirts. OD. Canada has an absolute advantage in both goods because it can produce more boots and more shirts. O E. Both countries have an absolute advantage in both goods because they both produce boots and shirts. Suppose initially that the United States is consuming 12 boots and 2 shirts and Canada is consuming 4 boots and 8 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades Canada half of its production for half of what Canada produces. The United States will have 4 additional shirt(s) after the trade (enter a numeric response using an integer) and 14 additional boot(s). At the same time, Canada will be able to consume 8 additional shirt(s) as a result of the trade and 6 additional boot(s).

Using the same amount of resources, the United States and Canada can both produce lumberjack shirts and lumberjack boots, as shown in the production possibilities frontiers in the figure to the right. Canada has a comparative advantage in producing lumberjack boots. The United States has a comparative advantage in producing lumberjack shirts. Does either country have an absolute advantage in producing both goods? OA. Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts. B. Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts. OC. The United States has an absolute advantage in both goods because it can produce more boots and more shirts. OD. Canada has an absolute advantage in both goods because it can produce more boots and more shirts. O E. Both countries have an absolute advantage in both goods because they both produce boots and shirts. Suppose initially that the United States is consuming 12 boots and 2 shirts and Canada is consuming 4 boots and 8 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades Canada half of its production for half of what Canada produces. The United States will have 4 additional shirt(s) after the trade (enter a numeric response using an integer) and 14 additional boot(s). At the same time, Canada will be able to consume 8 additional shirt(s) as a result of the trade and 6 additional boot(s).

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
Explain all options compulsory and solve all questions ....you will not solve all questions then I will give you down upvote...
Using the same amount of resources, the United States and Canada can both produce lumberjack shirts and lumberjack boots, as shown in the production possibilities frontiers in the figure to the right. Canada has a comparative advantage in producing lumberjack boots. The United States has a comparative advantage in producing lumberjack shirts. Does either country have an absolute advantage in producing both goods? OA. Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts. B. Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts. OC. The United States has an absolute advantage in both goods because it can produce more boots and more shirts. OD. Canada has an absolute advantage in both goods because it can produce more boots and more shirts. O E. Both countries have an absolute advantage in both goods because they both produce boots and shirts. Suppose initially that the United States is consuming 12 boots and 2 shirts and Canada is consuming 4 boots and 8 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades Canada half of its production for half of what Canada produces. The United States will have 4 additional shirt(s) after the trade (enter a numeric response using an integer) and 14 additional boot(s). At the same time, Canada will be able to consume 8 additional shirt(s) as a result of the trade and 6 additional boot(s).
Transcribed Image Text:Using the same amount of resources, the United States and Canada can both produce lumberjack shirts and lumberjack boots, as shown in the production possibilities frontiers in the figure to the right. Canada has a comparative advantage in producing lumberjack boots. The United States has a comparative advantage in producing lumberjack shirts. Does either country have an absolute advantage in producing both goods? OA. Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts. B. Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts. OC. The United States has an absolute advantage in both goods because it can produce more boots and more shirts. OD. Canada has an absolute advantage in both goods because it can produce more boots and more shirts. O E. Both countries have an absolute advantage in both goods because they both produce boots and shirts. Suppose initially that the United States is consuming 12 boots and 2 shirts and Canada is consuming 4 boots and 8 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades Canada half of its production for half of what Canada produces. The United States will have 4 additional shirt(s) after the trade (enter a numeric response using an integer) and 14 additional boot(s). At the same time, Canada will be able to consume 8 additional shirt(s) as a result of the trade and 6 additional boot(s).
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS