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Three countries, Hungary, Bulgaria, and Czech Republic, have Ricardian technologies as listed in the table below and can produce two types of goods, namely butter and beer. Number of labor units required to produce one unit of output Country Butter Hungary Bulgaria Czech Republic 234 4 Beer 4 7 5 Which country has an
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- Suppose that Country A and Country B can produce the following numbers of Chairs and Printers per worker per day. Which of the following is true? Country A Country B 25 Chairs 10 Printers 4 Country B has Absolute Advantage (in both products), and Country A has Comparative Advantage in Printers. Country A has Absolute Advantage (in both products), and Country B has Comparative Advantage in Printers. Country A has Absolute Advantage (in both products), and Country A has Comparative Advantage in Printers. Country B has Absolute Advantage (in both products), and Country B has Comparative Advantage in Printers.The following table shows the total production that can be produced by two countries at 100 workers. Countries Corn production (bushels) 350 Oil production (barrels) Saudi Arabia 500 United States 300 450 a) Which country has an absolute advantage in the production of oil and corn? b) Calculate the opportunity cost of producing one barrel of oil and one bushel of corn in each country. c) According to the principle of comparative advantage, which country should specialize in producing of oil and corn? d) Identify which country should import corn and oil e) When import greater is in a country that can increase level of competition between for local and foreign country, discuss FIVE (5) tools how government can protect local industry from foreign competition.Refer to Table 1-1 Now, each country spends all 40 hours of its time producing only the good for which it has a comparative advantage. What is the total output of CHEESE produced by both countries combined now?
- a) Determine which country has a comparative advantage in each good . b) If Country A and Country B each have 100 units of labour , calculate the maximum production of each good for both countries .In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. Show by way of calculations: a) The United States has absolute advantage in the production of? b) The United Kingdom has a comparative in the production of? c) If trade occurs between the United States and the United Kingdom, American firms will specialize in the production of?Which of the following statements is correct? Two countries cannot gain from specialization and trade if they have identical opportunity costs in the production of some goods If two countries are gaining from specialization and trade, the countries must be specializing in the good they have an absolute advantage in If a certain trade is good for one country, it must be bad for the other country Two countries cannot gain from specialization and trade if one country does not have an absolute advantage in either good A Click Submit to complete this assessment.
- Country A Country B 200 corn 600 150 375 100 50 50 75100 150 200 cars 25 50 75 100 cars a) What is the opportunity cost of making cars in each country? Make clear how you find this and what it means. b) If the countries were to specialize and trade, which country should specialize in making cars? Why? c) If the countries specialize completely according to comparative advantage (i.e.each produces only what they have the comparative advantage in) what would be the total production of cars and corn? How does this compare to the total production at their original pre-trade production points? d) Suppose the country that specializes in making only cars trades with the country that makes no cars. The car-maker sends the other country as many cars as they were consuming before trade. How much corn could the corn-making country trade for these cars and have both countries be better off than they were before trade?The table below shows how many millions of cars and trucks each country can produce in one year. Based on the information, which of the following is true? Maximum Country Country outputs A B CARS 30 m 35 m TRUCKS 6 m 21 m Copyright: www.economicsonline.co.uk Country A has the comparative advantage in trucks Country B has the comparative advantage in cars Country A has the comparative advantage in cars Country A has the absolute advantage in carsThe following table describes the number of yards of cloth and barrels of wine that can be produced with a week’s worth of labor in England and Portugal. Assume that no other inputs are needed. In England In Portugal Cloth 8 yards 12 yards Wine 2 barrels 6 barrels d.Which country has an absolute advantage in the production of which good(s)? Which country has a comparative advantage in the production of which good(s)? e.If the countries start trading with each other, which country will specialize and export which good? f.What can be said about the price at which trade will take place?
- Countries A and B are both producers of wine and sausages. The table below shows their respective capacities for production of each of these goods should they devote all their resources to either good 1 (wine) or good 2 (sausages). With reference to relevant theories of trade (absolute advantage/relative advantage), explain which country should concentrate on production of which good(s). Country A:wine 10,000sausages 20,000 Country B:wine 6,000sausages 10,000Two countries, Nicaragua and Argentina can both produce bananas and wheat. Their production possibility frontiers are shown below. Based on this we can say that Nicaragua has a comparative advantage in producing__________. Both countries can gain from trade if Nicaragua produces___________ and Argentina produces __________ and trade. Bananas; bananas; wheat. Bananas; wheat; bananas. Wheat; wheat; bananas Wheat, bananas; bananasThe following table shows how many tonnes of dairy products and beef products can be produced in Country 1 and Country 2 with one unit of equivalent resources. Country 1 Country 2 Dairy Products (tonnes) 15 15 Beef Products (tonnes) 5 25 ..... a. Which country has an absolute advantage in dairy products? In beef products? Explain. Whoever is able to produce absolute advantage of producing that product. advantage in dairy production. production. with the same amount of resources has the has the absolute has the absolute advantage in beef A *****
