Question 41

0 out of 1.7 points

GoodsSpainFrance

Grapes815

Textiles45

Note: figures are hours of labor per unit of output

Spain has comparative advantage in the production of _____________________ (grapes, textiles, both grapes and textiles, neither grapes nor textiles).

Question 42

France has absolute advantage in the production of ____________________ (grapes, textiles, both grapes and textiles, neither grapes nor textiles.

Question 43

Once trade begins, a possible terms-of-trade for textiles in terms of grapes is ______________ (5, 2/5, 2, 4/5).

Question 44

If France has a labor force of 30,000 hours of labor, after trade begins, it will produce ____________________________ (2000 units of grapes; 6000 units of textiles; 2000 units of grapes and 6000 units of textiles).

Question 45

France will gain from trade as long as the international price of grapes measured in terms of textiles is below (15, 3, 5, 8)

Question 46

When trade opens between two countries, the country with higher _______________ will experience higher ____________(MRT, MRS, benefit, income).

Question 47

Country A imports $60 in shirts and exports $40 in shirts, its trade balance is ___________________(20, -20, 0, 100, -100)