Refer to Table 3-6. How could Denmark and Italy benefit? O by Denmark specializing in bread and Italy specializing in cheese by Denmark specializing in cheese and Italy specializing in bread by Denmark specializing in neither good and Italy specializing in both goods Output is already efficient - there is no way for either country to benefit by Denmark specializing in both goods and Italy specializing in neither good

Refer to Table 3-6. How could Denmark and Italy benefit? O by Denmark specializing in bread and Italy specializing in cheese by Denmark specializing in cheese and Italy specializing in bread by Denmark specializing in neither good and Italy specializing in both goods Output is already efficient - there is no way for either country to benefit by Denmark specializing in both goods and Italy specializing in neither good

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 15P

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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.
6.On a production possibilities frontier, produ ction is efficient if the production point is Gaseballs 200 150 MENL202 ABDAL AYMENL20211 B 100 ABDAL ANA DALLAH AENL20211 AYMENL20211 50 GANA ABDALLAH AYMENL20211 GANA ABDALLAH 100 200 ALLAH Figure 2-6 300 400 Bananas ALLAH AYMENL20211 CANA AYMENL20211 ABDALLAH GANA AYMENL20211 GANA ABDALLAH AYMENL20211 ABDALLAH AYMENL20211 A inside the frontier. on or inside the frontier. C outside the frontier. D on the frontier. ANA DALLAH GANA RDALLAH GANA BDALLAH GANA RDALLAH GANA ADALLAH
250 A 225 200 175 150 125 100 75 E 50 25 20 40 60 80 100 Oil Drills On the PPF shown in the figure above, which points represent inefficient production points? Select one: a. points C and E b. points D and A c. points B and D d. points A and E Solar Panels
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IVIOVIng tu anouier questioT Wir save uISTespoTIse. Question 6 12 Mac's PPF Izzie's PPF 8 10 12 Television sets (per month) The production possibility frontiers for Mac and Izzie are shown in the figure above. Based on this figure, answer the following questions: a) In what product does each of Mac and Izzie have an absolute advantage? b) What is the opportunity cost of one television set for each of Mac and Izzie? c) Suppose that Mac and Izzie wish to specialize in one product and then trade with each other, in which product will each of Mac and Izzie specialize and how many units will they produce d) How many units of televisions should be traded for computers in order for Mac and Izzie to reach point c? e) What does the space between points a and c represent? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). I U S Paragraph A V In *G 哈O Arial 10pt x X, 田由田用因 () 图 HE
wine 90 80 70 60 50. D012 mani 40 30 20 10 PPF Portugal (c) 1 bome of (0)2 bottles of sine (0)3 bottles of wine CPF of t 0 10 20 30 40 50 60 cloth 11. What is the elave price opportunity cost of col in England, betere trade beges? A) 1/2 yard of cloth wine 90 80 70 60 50 40 30 20 10 England PPF CPF 0 10 20 30 40 50 60 cloth
Points on Production Possibilities Frontier Canada China Wheat Computers Wheat Computers A 150 0 90 0 B 100 25 60 60 C 50 50 30 120 D 0 75 0 180 Draw the production possibilities graph for Canada and China and label all of the points on the graph. For which good does Canada have a comparative advantage? For which good does China have a comparative advantage? If Canada and China decide to specialize and trade, how many more computers and bushels of wheat would be available for consumption by both countries? Show the increase on your graphs. Canada and China decide to impose trade restrictions in the form of a tariff on the computers and wheat. What are the costs or benefits to the consumer, producer and government for each country?
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