Statistics Canada, in December 2016, Canada sold aircraft and spacecraft worth $113.94 million to China and bought
Question:
Statistics Canada, in December 2016, Canada sold aircraft and spacecraft worth $113.94 million to China and bought aircraft and spacecraft worth only $40.5 million from China. During the same month, however, Canada bought $1,568.2 million worth of apparel and clothing accessories from China but sold only $643,705 worth of apparel and clothing accessories to China. Using what you have learned about how trade is determined by comparative advantage, answer the following questions.
a. Which country has the comparative advantage in aircraft production? In production of apparel and clothing accessories?
b. Can you determine which country has the absolute advantage in aircraft production? In apparel and clothing accessories?
Step by Step Answer:
a If trade is taking place according to comparative adv...View the full answer
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
Students also viewed these Business questions
-
Igor worked the entire year at Dauz Inc, a Canadian controlled private corporation based in St John's. Igor received $180,000 of salary in 2016. He was also awarded a bonus in December 2015 in the...
-
Pam Corporation paid $1,155,000 cash for a 70 percent interest in Sun Corporation's outstanding common stock on January 2, 2016, when the equity of Sun consisted of $1,000,000 common stock and...
-
The income statement for the year ended December 31, 2017, as well as the balance sheets as of December 31, 2017 and December 31, 2016, for Lucky Lady Inc. follow. This information is taken from the...
-
Valuing Preferred Stock Best Rate Bank just issued some new preferred stock. The issue will pay a $10 annual dividend in perpetuity, beginning 10 years from now. If the market requires a 7 percent...
-
Liam Mitchell, a manager of the Plate Division for the Harvest Manufacturing company, has the opportunity to expand the division by investing in additional machinery costing $495,000. He would...
-
The rotational inertia of a collapsing spinning star drops to 1/3 its initial value. What is the ratio of the new rotational kinetic energy to the initial rotational kinetic energy?
-
Explain the accounting for small and large stock dividends, and for stock splits.
-
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total...
-
P1-1B On April 1, Holly Dahl established Holiday Travel Agency. The following transac- tions were completed during the month. 1. Shareholders invested 10,000 cash in the business in exchange for...
-
Are cigarettes bad for people? Cigarette smoking involves tar, carbon monoxide, and nicotine (measured in milligrams). The first two are definitely not good for a person's health, and the last...
-
In the ancient country of Roma, only two goods, spaghetti and meatballs, are produced. There are two tribes in Roma, the Tivoli and the Frivoli. By themselves, the Tivoli each month can produce...
-
Peter Pundit, an economics reporter, states that the European Union (EU) is increasing its productivity very rapidly in all industries. He claims that this productivity advance is so rapid that...
-
Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the following partially...
-
Alvarado Company produces a product that requires 5 standard direct labor hours per unit at a standard hourly rate of $12.00 per hour. If 5,700 units used 29,400 hours at an hourly rate of $11.40 per...
-
7. (30 points) You are a teaching assistant (TA) for a new course in the department and you wish to measure the amount of time that students spend engaging with the online resources. Using the Canvas...
-
Mod Clothiers makes women's clothes. It costs $28,000 to produce 5,000 pairs of polka-dot polyester pants. They have been unable to sell the pants at their usual price of $50.00. The company is...
-
In a mid-sized manufacturing company, the annual financial statements were prepared for audit by an external auditing firm. The company\'s finance team had diligently compiled the financial data, and...
-
Explain the meaning of the SMART acronym. In 100-200 words, define what the words "goal" and "success" mean to you. Summarize your thoughts on whether or not the SMART model can help you become a...
-
What is a prospectus? What is its purpose?
-
3M Company reports the following financial statement amounts in its 10-K report: a. Compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. (Receivables turnover and...
-
Portray the following hypothetical data on a two variable diagram: Measure the slope of the resulting line, and explain what this numbermeans. Academic ar 1994-1995 1995-1996 1996-1997 1997-1998...
-
Colin believes that the number of job offers he will get depends on the number of courses in which his grade is B+ or better. He concludes from observation that the following figures are typical: Put...
-
In Figure, interpret the economic meaning of points A and B. What do the two points have in common? What is the difference in their economicinterpretation? FIGURE An Economic Contour Map 80 70 60 50...
-
Diplomatic Security Service provides Airport Transportation and Surveillance Service to Foreign Diplomats in Guyana. The company has two support departments - Information Systems and Equipment...
-
Q1: A disparity of bargaining power between the parties to a contract may result in unfair terms but a court is not likely to consider the contract unconscionable. Group of answer choices a. True b....
-
Life Tool Manufacturing has a system in place to recall products that prove to be dangerous at some time after manufacture and distribution. This represents which element of the due care theory?...
Study smarter with the SolutionInn App