The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities Product B D E F A 20,000 16,000 0 8 Apparel Chemicals (tons) C 12,000 16 0 8,000 24 4,000 32 40 U.S. Production Possibilities Product T U V W Apparel R S 60,000 48,000 0 12 0 36,000 24,0000 24 36 12,000 48 Chemicals (tons) 60 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) If so, what product should each produce? China should produce [(Click to select) The United States should produce [(Click to select) b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units ton(s) Chemicals: c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals.

The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities Product B D E F A 20,000 16,000 0 8 Apparel Chemicals (tons) C 12,000 16 0 8,000 24 4,000 32 40 U.S. Production Possibilities Product T U V W Apparel R S 60,000 48,000 0 12 0 36,000 24,0000 24 36 12,000 48 Chemicals (tons) 60 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) If so, what product should each produce? China should produce [(Click to select) The United States should produce [(Click to select) b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units ton(s) Chemicals: c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units of apparel for 2 tons of chemicals.

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 6SCQ: Table 33.15 shows how the average costs of production for semiconductors (the chips In computer...

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Does intra-industry trade contradict the theory of comparative advantage?
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?
How does comparative advantage lead to gains from trade?
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities Product A в D E F Apparel Chemicals (tons) |20,000 16,000 12,000 8,000 4,000 8 16 24 32 40 U.S. Production Possibilities Product R S T U V W Apparel Chemicals(tons) 60,000 48,000 36,000 24,0000 12,000 12 24 36 48 60 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) V If so, what product should each produce? China should produce (Click to select) ♥ The United States should produce (Click to select) V b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: |ton(s) c. What are the limits of the terms of trade? units of apparel for 1 ton of chemicals and units…
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. Product Apparel Chemicals (tons) Product Apparel Chemicals (tons) (Click to select) ✓ China Production Possibilities A 10,000 0 units B 8,000 4 6,000 8 U.S. Production Possibilities R S 30,000 24,000 0 6 T 18,000 12 ton(s) D 4,000 12 U 12,0000 18 E 2,000 16 V 6,000 24 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? F 0 20 W 0 30 If so, what product should each produce? China should produce (Click to select) The United States should produce (Click to select) ✓ b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: Chemicals:
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product A B D E F 120,000 48,000 Apparel Chemicals(tons) 96,000 72,000 24,000 24 48 72 96 120 Customize and control Google Chrome U.S. Production Possibilities Product R S T U V W Apparel Chemicals(tons) 40,000 32,000 24,000 16,0000 8,000 16 32 48 64 80 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? (Click to select) ♥ If so, what product should each produce? China should produce (Click to select) V The United States should produce (Click to select) V b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the terms of trade? units of…
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. [Note: 1 unit of apparel is 1,000 items and 1 unit of chemicals is 1 ton.] China Production Possibilities Product A E F in thousands) Apparel Chemicals (in tons) 30 24 18 12 12 18 24 30 U.S. Production Possibilities Product R S T U V W Apparel (in thousands) Chemicals (in tons) 10 8 6 4 2 4 8 12 16 20 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two areas should specialize? Yes If so, what product should each produce? China should produce apparel The United States should produce chemicals
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.
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities в Product Apparel (in thousands) Chemicals (in tons 30 24 18 12 12 18 24 30 U.S. Production Possibilities Product R T. Apparel (in thousands) Chemicals (in tona) 10 2. 16 4. 8. 12 20 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two areas should specialize? [(Click to select) If so, what product should each produce? China should produce [(Cick to select) The United States should produce (Cick to select) b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel:
The countries of Nickeltown and Lykesville each produce two goods: Ovens and Dishwashers. The table below lists the production for each good, for each country per year when each country uses half of their resources to produce each good. Country Production of Ovens Production of Dishwashers Nickeltown 105 Lykesville 147 What is the opportunity cost of producing 1 Ovens in Nickeltown Dishwashers 70 42 What is the opportunity cost of producing 1 Ovens in Lykesville Dishwashers ONickeltown OLykesville ONot enough information Which country has a comparative advantage in producing Ovens?
The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be Multiple Choice 40 tons of pots. 20 tons of tea and 20 tons of pots. 20 tons of tea. 40 tons of tea.
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