Suppose that in a year an American worker can produce 60 shirts or 30 computers and a Chinese worker can produce 60 shirts or 12 computers. There are 1 million workers in each country.
Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) to graph the production possibilities frontier for China.
Suppose that without trade the workers in each country spend half their time producing each good.
Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to indicate this production and consumption point for China.
If these countries were open to trade, would export shirts and would benefit from trade.
The price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is shirts per computer, and the lowest price that makes both countries better off is shirts per computer.
Suppose that China catches up with American productivity so that a Chinese worker can produce 60 shirts or 30 computers.
True or False: There are no longer gains from trade.
True
False
Suppose that in a year an American worker can produce 60 shirts or 30 computers and...
Suppose that in a year an American worker can produce 80 shirts or 20 computers and a Chinese worker can produce 60 shirts or 20 computers. There are 1 million workers in each country. Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) to graph the production psies frontier for China 30 27 24 21 18 China PPF 15 U.S. without Trade China without Trade...
8. Problems and Applications Q8 Suppose that in a year an American worker can produce 60 shirts or 30 computers and a Chinese worker can produce 60 shirts or 12 computers. There are 1 million workers in each country. Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) to graph the production possibilities frontier for China. U.S. PPF China PPF Quantity of Computers (Millions) HHHHHHHHHH...
8. Problems and Applications Q8 Suppose that in a year an American worker can produce 60 shirts or 30 computers and a Chinese worker can produce 60 shirts or 12 computers There are 1 million workers in each country Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) to graph the production possibilities frontier for China U.S. PPF 21 18 S15 China PPF U.S. without...
14. Problems and Applications Q8 Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) to graph the production possibilities frontier for China. 30 T 27 U.S PPF China PPF 15 12 U.S. without Trade China without Trade 0 10 20 30...
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. 1. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs. 2. Who has the comparative advantage in the production of shirts? What about for computers? 3. If these countries were open to...
2. Problems and Applications Q2 An American worker can produce either 5 cars or 9 tons of grain a year. A Japanese worker can produce either 3 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. Workers Needed to Make 1 Car 1 Ton...
Assume the table below shows the quantities of automobiles and computers that a worker can produce in a day in the United States and Japan. Automobiles Computers 12 United States Japan 2 24 Suppose each country has 2,000 workers and consumes the following (per day) without trade from allocating 1,000 workers to automobile production and 1,000 workers to computer production: United States Japan Automobiles 4,000 2,000 Computers 12,000 24,000 If both countries specialize completely by producing only that for which...
2. Problems and Applications Q2 An American worker can produce ether 4 cars or 8 tons of grain a year. A Japanese worker keep things simple, assume that each country has 100 milion workers. can produce ether 4 cars or s tons of grain a year. To Complete the following table with the number of workers needed to make one car orl I ton of grain in the united States and Japan. Workers Needed to Make 1 Car 1 Ton...
2. Problems and Applications Q2 An American worker can produce either 5 cars or 9 tons of grain a year. A Japanese worker can produce either 3 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. Workers Needed to Make 1 Car1 Ton of...
We were unable to transcribe this imageThe price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is shirts per computer, and the lowest price that makes both countries better off is shirts per computer Suppose that China catches up with American productivity so that a Chinese worker can produce 80 shirts or 20 computers True or False: There are no longer...