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Suppose that Slovenia and Slovakia both produce sunflowers and glass. Slovenia's opportunity cost of producing a pane of glass is 6 bushels of sunflowers while Slovakia's opportunity cost of producing a pane of glass is 11 bushels of sunflowers. By comparing the opportunity cost of producing glass in the two countries, you can tell that Slovenia production of glass and Slovakia has a comparative advantage in the production of sunflowers. has a comparative advantage in the Suppose that Slovenia and Slovakia consider trading glass and sunflowers with each other. Slovenia can gain from specialization and trade as long as it receives more than of sunflowers for each pane of glass it exports to Slovakia. Similarly, Slovakia can gain from trade as long as it of glass for each bushel of sunflowers it exports to Slovenia. receives more than Based on your answer to the last question, which of the following prices of trade (that is, price of glass in terms of sunflowers) would allow both Slovakia and Slovenia to gain from trade? Check all that apply. ☐ 1 bushel of sunflowers per pane of glass 7 bushels of sunflowers per pane of glass 14 bushels of sunflowers per pane of glass ☐ 8 bushels of sunflowers per pane of glass

Suppose that Slovenia and Slovakia both produce sunflowers and glass. Slovenia's opportunity cost of producing a pane of glass is 6 bushels of sunflowers while Slovakia's opportunity cost of producing a pane of glass is 11 bushels of sunflowers. By comparing the opportunity cost of producing glass in the two countries, you can tell that Slovenia production of glass and Slovakia has a comparative advantage in the production of sunflowers. has a comparative advantage in the Suppose that Slovenia and Slovakia consider trading glass and sunflowers with each other. Slovenia can gain from specialization and trade as long as it receives more than of sunflowers for each pane of glass it exports to Slovakia. Similarly, Slovakia can gain from trade as long as it of glass for each bushel of sunflowers it exports to Slovenia. receives more than Based on your answer to the last question, which of the following prices of trade (that is, price of glass in terms of sunflowers) would allow both Slovakia and Slovenia to gain from trade? Check all that apply. ☐ 1 bushel of sunflowers per pane of glass 7 bushels of sunflowers per pane of glass 14 bushels of sunflowers per pane of glass ☐ 8 bushels of sunflowers per pane of glass

Principles of Economics 2e
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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Suppose that Slovenia and Slovakia both produce sunflowers and glass. Slovenia's opportunity cost of producing a pane of glass is 6 bushels of sunflowers while Slovakia's opportunity cost of producing a pane of glass is 11 bushels of sunflowers. By comparing the opportunity cost of producing glass in the two countries, you can tell that Slovenia production of glass and Slovakia has a comparative advantage in the production of sunflowers. has a comparative advantage in the Suppose that Slovenia and Slovakia consider trading glass and sunflowers with each other. Slovenia can gain from specialization and trade as long as it receives more than of sunflowers for each pane of glass it exports to Slovakia. Similarly, Slovakia can gain from trade as long as it of glass for each bushel of sunflowers it exports to Slovenia. receives more than Based on your answer to the last question, which of the following prices of trade (that is, price of glass in terms of sunflowers) would allow both Slovakia and Slovenia to gain from trade? Check all that apply. ☐ 1 bushel of sunflowers per pane of glass 7 bushels of sunflowers per pane of glass 14 bushels of sunflowers per pane of glass ☐ 8 bushels of sunflowers per pane of glass
Transcribed Image Text:Suppose that Slovenia and Slovakia both produce sunflowers and glass. Slovenia's opportunity cost of producing a pane of glass is 6 bushels of sunflowers while Slovakia's opportunity cost of producing a pane of glass is 11 bushels of sunflowers. By comparing the opportunity cost of producing glass in the two countries, you can tell that Slovenia production of glass and Slovakia has a comparative advantage in the production of sunflowers. has a comparative advantage in the Suppose that Slovenia and Slovakia consider trading glass and sunflowers with each other. Slovenia can gain from specialization and trade as long as it receives more than of sunflowers for each pane of glass it exports to Slovakia. Similarly, Slovakia can gain from trade as long as it of glass for each bushel of sunflowers it exports to Slovenia. receives more than Based on your answer to the last question, which of the following prices of trade (that is, price of glass in terms of sunflowers) would allow both Slovakia and Slovenia to gain from trade? Check all that apply. ☐ 1 bushel of sunflowers per pane of glass 7 bushels of sunflowers per pane of glass 14 bushels of sunflowers per pane of glass ☐ 8 bushels of sunflowers per pane of glass
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