ECON305 CH 10
10 points eBook Prim References The table below shows the maximum output levels for Here and There. a. What is the cost of1 unit of cloth and a computer in Here? Round your answers below to 2 decimal places. 1 cloth = :] computers. 1 computer = :] units of cloth. b. What is the cost of1 unit of cloth and a computer in There? Round your answers below to 2 decimal places. 1 cloth = :] computers. 1 computer = :] units of cloth. c. In which product does each country have a comparative advantage? Here: (Click to select) v There: [Click to select) v d. What is the range offeasible terms oftrade between the two countries? Round your answers below to 2 decimal places. Feasible terms of trade -- References The table below shows the labour productivity for the countries of Yin and Yang. a. If the working populations of Yin and Yang are both 40 million, divided equally between the two industries in each country, how many machines and loaves of bread (in millions] are currently being produced in Yin and Yang? b. If the two countries decide to specialize, in which product does each country have a comparative advantage? Yin: {Click to select) v Yang: (Click to select) v c. if the two countries specialize in the product in which they have a comparative advantage, show their total outputs in the table below. d. What are the gains from trade? Loaves of bread References The table below shows the production possibilities for Concordia and Harmonia. CDMORDIQ' S PRODUCTION \"nu-u\" -_l-m- __l---_ MRHDNIA' S PRODUCTION a. What are the costs of the two products in each country? Round your answers below to 2 decimal places. Concordia: 1 unit of pork costs 5 beans. 1 unit of beans costs units of pork. Harmonia: 1 unit of pork costs beans. '1 unit of beans costs units of pork. b. Which products should each country specialize in and export? Concordia: (Click to select} v Harmonia: (Click to select} v c. if. prior to specialization and trade, Concordia produced combination D and Harmonia produced combination 8, what wouEd be the total gains from trade? Pork: Beans: d. What would be the range of feasible terms of trade between the two countries? Feasible terms of trade _m 4 0 400 500 09 700 Quantity of mangos (cases) 10 points eBook Print References The world price is $8 a case, and India is open to free trade. Will India export or import mangos? a. India will export v mangos since, the domestic production exceeds the domestic demand. b. What quantity will domestic producers supply? cases of mangos. c. What quantity will India export or import? Import cases of mangoes d. If the world price is $12, will India export or import mangos? How much? India will |(Click to select) v | the difference of cases.4 The graph below shows the domestic supply of and demand for mangos in India. 10 points 17 eBook 16 D 15 Print 14 13 References 12 11 10 9 8 6 5 4 CO 2 100 200 300 OV 500 600 200 Quantity of mangos (cases)5 The table below shows the productivity levels of producing beer and sardines in Canada and Mexico. What should be the Mexican productivity per worker in the sardine industry for no advantage to be gained from trade? 10 PRODUCTION PER WORKER points ( average product) Beer Sardines Canada 10 3 eBook Mexico 20 Print References6 References Hheat '- Suppose that both countries are presently producing combination C. h. Fill in the blanks in the table below. IIII ------ ------ Now suppose that each countryr specializes in the product in which it has a comparative advantage. i. Show the results in the table below. -- -- I-II-I j. What is thejoint gain from trade? [: Wheat and Wine Suppose that the two countries establish the terms of trade at 1 wine = 2 wheat, and Richland decides to export '15 wheat to Prosperity. k. In the table below show how the two countries will share the gain or loss from trade. Round your answers below to 1 decimal place. GAINS FOR EACH CMTRY IN MILLICNS DF LNITS m IIII IIII \f6 points eBook Print References Suppose that Richland and Prosperity have the output gures shown in the table below. A'JERAGE PRODUCT PER MKER Richland 3bushels \" 1 bushels Assume that cost and productivity remain constant. Round your answers below to 2 decimal places. a. What is the opportunity cost of producing one bushel of wheat in Richland? 1 bushel of wheat = :] barrels of wine. b. What is the opportunity cost of producing one barrel of wine in Richland? 1 barrel of wine = :] bushels of wheat. c. What is the opportunity cost of producing one bushel of wheat in Prosperity? 1 bushel of wheat = :] barrels ofwine. d. What is the opportunity cost of producing one barrel of wine in Prosperity? 1 barrel of wine = :] bushels of wheat. e. In which product does Richland have a comparative advantage? Richlandi f. in which product does Prosperity have a comparative advantage
