Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 1 Which of the following differences is NOT considered a source of comparative advatage? 0 Difference in technology 0 Difference in capacity to attain

image text in transcribed

image text in transcribed
QUESTION 1 Which of the following differences is NOT considered a source of comparative advatage? 0 Difference in technology 0 Difference in capacity to attain absolute advatage Difference in factor endowments 0 Difference in climate QUESTION 2 The following table shows the number of workers used in the first row, while each of the subsequent rows - whose first cell is in green- shows the units produced of a particular good by that number of workers. For example: for good A, 2 workers produce 4 units of good A; while for good B, 2 workers produce 0.25 units of good B; and for good C 6 workers, produce 13 units of good C. Given the information from the table, select the good based ONLY on the returns to scale that is more likely to lead to trade in which most of the production is concentrated in a few locations because of efciency gains: Number of workers 2 4 6 8 10 Units of good A 4 8 12 16 20 Units of good B 0.25 1.5 4.25 12.25 25 Units of good C 8 11 13 14 15 Units of good D 5 1O 15 20 25 O GoodA 0 Good B 0 Good C 0 Good D

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Microeconomics

Authors: Robert Frank

7th Edition

1260111083, 9781260111088

More Books

Students also viewed these Economics questions

Question

Who is present when I give in to my bad habit?

Answered: 1 week ago