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                            Cheese (units)                 Bread (units) England             40                                 20 Spain                20                                5 The table above shows how much each of two countries can produce in 40 hours. (For example, England can produce 40 units of cheese in 40 hours.) If England and Spain specialize and trade according to their respective comparative advantage, a. The opportunity cost of cheese production is higher in Spain than in England.    Incorrect b....

  •   . The following graph shows the production possibilities frontier for the imaginary country of Contente under...

      . The following graph shows the production possibilities frontier for the imaginary country of Contente under conditions of increasing costs. In the absence of trade, the relative cost of rice in Contente in terms of phones (or the marginal rate of transformation (MRT) of rice into phones) is shown by the slope of line , tangent to the production possibilities...

  • If the world price of a beverage produced from distilled potatoes is higher than Russia’s domestic...

    If the world price of a beverage produced from distilled potatoes is higher than Russia’s domestic price under autarky, then under free trade Russia: a. Should import this beverage. b. Has a comparative advantage in the production of this beverage. c. Should only produce enough of this beverage to meet its domestic demand. d. Will experience a loss in producer...

  • 1. Do you agree or disagree with the following statements a. Balanced trade is the difference...

    1. Do you agree or disagree with the following statements a. Balanced trade is the difference between exports and imports b. If country A can out produce country B, then country A has no reason to trade c. Every country in the world experiences free trade d. There is no connection between Foreign direct investment and trade flows e. An...

  • #1. The following table illustrates the demand and supply schedules for calculators in Sweden and Norway...

    #1. The following table illustrates the demand and supply schedules for calculators in Sweden and Norway (measured in dollars). Price Sweden Norway Quantity Supplied Quantity Demanded | Quantity Supplied Quantity Demanded 0 1,200 1,800 200 1,000 - 1,600 400 800 1.400 600 600 1,200 800 400 200 1,000 1,000 200 400 800 1,200 600 600 1,400 800 400 1,600 1,000...

  • I know that the eq. price is 172 and quantity is 172 for France. I know...

    I know that the eq. price is 172 and quantity is 172 for France. I know that the rest of the world has a comparative advantage. I need help with Part 2, questions: b, c, and 3. Thanks! BTTUx AParagraph Stylas 4. Refer to igure above. Which area represents the Increase in consumer surplus when the price falls from Ps...

  • Question 21 2.5 pts The following chart shows the yearly productivities of the average U.S.worker and...

    Question 21 2.5 pts The following chart shows the yearly productivities of the average U.S.worker and the average French worker in wine and bread. WINE BREAD (loaves/worker) (bottles/worker) U.S. 20 60 France 10 10 According to our trade models, which of the following statements is true? O Mutually beneficial trade is not possible in this case because France is equaly...

  • Problem 1. (10 points.) This problem is based on the Ricardian Model. Assume that 2 countries,...

    Problem 1. (10 points.) This problem is based on the Ricardian Model. Assume that 2 countries, Gryffindor and Slytherin, use troll labor to produce 2 goods, swords and brooms. (a) In Gryffindor, 1 troll can produce 2 swords or 4 brooms, while in Slytherin the production of 1 sword requires 5 trolls and the production of 1 broom requires 2...

  • Question 5 "Free Trade" (with no barriers) is considered to be better than "No Trade" if...

    Question 5 "Free Trade" (with no barriers) is considered to be better than "No Trade" if it guarantees a more efficient reallocation of available economic resources within each economy, and between all economies involved in this trade. Question 5 options: True False Question 6 (10 points) Which of the following is an example of government intervention in the free trade,...

  • International trade

    Problem 1               BICYCLES           SKATEBOARDS      HOME                  5(hrs)                     2(hrs)      FOREIGN                  3(hrs)                     3(hrs) HOME has 1000 hours of labour available.FOREIGN has 1200 hours of labour available.a.      Draw the production possibility frontier for Home and Foreign. b.      In the absence of trade, what is the relative price of bicycles in terms of skateboards in each country? c.      Draw the world production possibility frontier clearly showing the case...

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