ECO 103 Ch.19 Intl Trade

COMPLETE THE MISSING PARTS NO EXPLAINANTION NEEDED.

QUESTION 1

Washington can grow 1 grapeor26 apple bushels per acre and California can grow 20 ofeither.

For Washington to grow one grape, it must give up _______ apples.

6 points

QUESTION 2

Washington can grow 1 grapeor26 apple bushels per acre and California can grow 20 ofeither.

For California to growonegrape, it must give up _____ apple.

6 points

QUESTION 3

Washington can grow 1 grapeor26 apple bushels per acre and California can grow 20 ofeither.

The absolute advantage in apple production is had by: ________.

6 points

QUESTION 4

Washington can grow 1 grapeor26 apple bushels per acre and California can grow 20 ofeither.

The absolute advantage in grape production is had by: ______

6 points

QUESTION 5

Washington can grow 1 grapeor26 apple bushels per acre and California can grow 20 ofeither.

The comparative advantage in apple production is had by: __________

6 points

QUESTION 6

Washington can grow 1 grapeor26 apple bushels per acre and California can grow 20 ofeither.

The comparative advantage in grape production is had by: __________

6 points

QUESTION 7

Washington can grow 1 grapeor26 apple bushels per acre and California can grow 20 ofeither.

The difference in apples each state must sacrifice to grow a bushel of grapes is: __________

6 points

QUESTION 8

Before trade Wash grows 1 grapeand26 apples for every two acres.

Before trade Cal grows 20 grapes and 20 apples for every two acres.

Now with trade Wash grows 52 apples per two acres and sends 25 to Cal.

The square route of this difference equals __________ apples for each grape- and this will be our terms of trade- though there are other ways to calculate terms of trade so long as both benefit.

6 points

QUESTION 9

Before trade Wash grows 1 grapeand26 apples for every two acres.

Before trade Cal grows 20 grapes and 20 apples for every two acres.

Now with trade Wash grows 52 apples per two acres and sends 25 to Cal.

Now with trade Cal grows 40 grapes for every two acres and sends _________ grapes in return for the 25 apples.

6 points

QUESTION 10

Before trade Wash grows 1 grapeand26 apples for every two acres.

Before trade Cal grows 20 grapes and 20 apples for every two acres.

Now with trade Wash grows 52 apples per two acres and sends 25 to Cal.

Finally Wash ends up with_________apples and__________grapes versus 26 apple and 1 grape,

which gives a trade gain of__________apples and____________grapes.

24 points

QUESTION 11

Before trade Wash grows 1 grapeand26 apples for every two acres.

Before trade Cal grows 20 grapes and 20 apples for every two acres.

Now with trade Wash grows 52 apples per two acres and sends 25 to Cal.

Finally Cal ends up with________apples and___________grapes versus 20 apple and 20 grape,

which gives a trade gain of___________apples and___________grapes.